What happened
Enterprise cloud computing specialist Nutanix (NTNX +3.60%) is seeing its stock fall sharply this week. At its worse point, shares of the tech stock fell about 14% during the week, and are down about 13% near the end of today's trading.
Much of the stock's decline was likely driven by a downgraded rating by an analyst.
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So what
On Thursday morning, investing research firm OTR Global lowered its rating for the stock from positive to mixed.
The reason for the lowered view? OTR Global's channel checks indicate extended "partner decision cycles," according to The Fly.
Though the analyst may have some concerns about Nutanix's business, the company entered its fiscal fourth quarter with significant momentum. Management said its annual contract value (ACV) billings growth accelerated during the fiscal third quarter to a rate of 18%.
Now what
For the fiscal fourth quarter, management said it expects ACV billings between $170 million and $175 million, up significantly from $159.9 million just three months earlier. On average, analysts expect revenue to increase 11% year over year during the period.
Nutanix is scheduled to report its fiscal fourth-quarter and full-year fiscal 2021 results after market close on Wednesday, Sept. 1.
