3 Reasons We’re Fans of Pure Storage (PSTG)

What Happened?

Shares of data storage solutions provider Pure Storage rose 1.8% in the morning session after the stock's positive momentum continued as the company emphasized its shareholder return strategy, backed by a new $400 million share repurchase authorization. 

The move to buy back shares, the largest in the company's history, suggested management's growing confidence in its business momentum and financial strength. In the last reported quarter, Pure Storage delivered 16% revenue growth from the previous year to $964 million and an operating margin of 20.3%. The company ended the fiscal third quarter with $1.5 billion in cash, cash equivalents, and marketable securities. This latest authorization was in addition to the $20 million remaining under its previous $250 million buyback plan, reinforcing the company's commitment to returning value to its shareholders.

After the initial pop the shares cooled down to $71.04, up 1.8% from previous close.

What Is The Market Telling Us

Pure Storage’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 3.8% on the news that President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies. The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off.Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.

Pure Storage is up 2.9% since the beginning of the year, but at $71.04 per share, it is still trading 28% below its 52-week high of $98.70 from October 2025. Investors who bought $1,000 worth of Pure Storage’s shares 5 years ago would now be looking at an investment worth $3,156.

What Happened?

A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies. 

The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off.Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Professional Staffing & HR Solutions company Insperity jumped 5%. Is now the time to buy Insperity? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company Pure Storage jumped 3.8%. Is now the time to buy Pure Storage? Access our full analysis report here, it’s free.
• Electronic Components & Manufacturing company CTS jumped 4.1%. Is now the time to buy CTS? Access our full analysis report here, it’s free.
• Terrestrial Telecommunication Services company Lumen jumped 4.2%. Is now the time to buy Lumen? Access our full analysis report here, it’s free.
• Electronic Components & Manufacturing company Plexus jumped 3.3%. Is now the time to buy Plexus? Access our full analysis report here, it’s free.

Zooming In On Insperity (NSP)

Insperity’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 23.5% on the news that the company reported disappointing second-quarter financial results and issued a weak outlook for the rest of the year. 

The human resources firm posted adjusted earnings of $0.26 per share, a figure that missed analyst estimates and represented a 70% plunge from the prior year. The company attributed the significant drop in profit to higher-than-expected benefits costs, specifically pointing to rising pharmacy expenses and an increased frequency of large insurance claims. This surge in costs also caused the company's gross profit to fall by 14% compared to the same quarter last year. To cap off the disappointing report, Insperity lowered its full-year earnings forecast, signaling to investors that these challenges were expected to persist.

Insperity is up 21.8% since the beginning of the year, but at $47.05 per share, it is still trading 50.1% below its 52-week high of $94.21 from March 2025. Investors who bought $1,000 worth of Insperity’s shares 5 years ago would now be looking at an investment worth $564.55.

What Happened?

Shares of data storage solutions provider Pure Storage jumped 3.7% in the afternoon session after the company highlighted several positive business drivers during its presentation at the 28th Annual Needham Growth Conference. 

During the event, the discussion centered on ongoing innovation in flash storage, with a focus on subscription-based models and the company's Enterprise Data Cloud strategy. It was also noted that rising prices for NAND, a key component, and increased AI workloads were boosting revenue and shipment volumes. The presentation suggested that new products and partnerships were expanding the company's market reach.

After the initial pop the shares cooled down to $72.23, up 2.3% from previous close.

What Is The Market Telling Us

Pure Storage’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 8.3% on the news that the company made strategic announcements regarding partnerships aimed at enhancing its technological capabilities and expanding its market presence. The reaction to the news suggested optimism among investors. The announcements pointed to new collaborations with technology partners designed to strengthen the company's data security solutions. This focus on data protection and management was viewed as a key element for future growth in an increasingly data-driven world.

Pure Storage is up 4.7% since the beginning of the year, but at $72.23 per share, it is still trading 26.8% below its 52-week high of $98.70 from October 2025. Investors who bought $1,000 worth of Pure Storage’s shares 5 years ago would now be looking at an investment worth $3,159.

What Happened?

Shares of data storage solutions provider Pure Storage jumped 8.3% in the afternoon session after the company made strategic announcements regarding partnerships aimed at enhancing its technological capabilities and expanding its market presence. 

The reaction to the news suggested optimism among investors. The announcements pointed to new collaborations with technology partners designed to strengthen the company's data security solutions. This focus on data protection and management was viewed as a key element for future growth in an increasingly data-driven world.

What Is The Market Telling Us

Pure Storage’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 1 month ago when the stock dropped 4.6% after investors rotated out of AI-linked high-flyers following underwhelming earnings updates from Oracle and Broadcom as the core thesis shifted from "growth at any cost" to "prove the returns." 

Oracle triggered the alarm by missing revenue estimates while simultaneously hiking capital expenditures by $15 billion. This reignited fears that AI infrastructure spending is outpacing actual monetization. Broadcom compounded the anxiety; despite beating earnings, its stock fell as CFO Kirsten Spears cautioned that gross margins may come under pressure as product mix shifts further toward system-level AI sales. This sparked a macro rotation away from AI infrastructure and power plays.

Pure Storage is up 5.2% since the beginning of the year, but at $72.62 per share, it is still trading 26.4% below its 52-week high of $98.70 from October 2025. Investors who bought $1,000 worth of Pure Storage’s shares 5 years ago would now be looking at an investment worth $3,101.