"The president is right to make this the center point of the rising and sustained trade conflict," says Sen. Chris Coons.Politicsread more
James Bullard said he dissented on this week's Fed decision to lower rates by a quarter percentage point because he didn't think the cut was big enough.The Fedread more
More than 400 Chinese products will be temporarily exempted from tariffs that President Donald Trump's administration imposed last year.China Economyread more
"I feel like I've contributed all I can to this primary election," he told MSNBC's "Morning Joe." "And it's clearly not my time. So I'm going to end my presidential campaign."2020 Electionsread more
The United Auto Workers union and General Motors are making progress on their labor contract talks, however there remain "many" outstanding issues, according to a union leader...Autosread more
Apple will get a taste of whether upgraded features on the new iPhone 11 are enough to lure shoppers to retail stores around the world as the new smartphones officially hit...Technologyread more
Joshua Harris, Apollo Global Management's co-founder, has a message for private equity's naysayers in Washington.Delivering Alpharead more
Roku shares have more than quadrupled this year, but the stock has had some rocky days of late as more players jump into streaming.Technologyread more
Two sites were hit Saturday — the Abqaiq and Khurais oil facilities — which took out 5.7 million barrels per day of oil production.World Politicsread more
Apple CEO Tim Cook greeted iPhone 11 customers at the reopening of the Fifth Avenue Apple store on Friday. CNBC also took a tour inside. Here's a look.Technologyread more
J.C. Penney is preparing for talks with its creditors on ways it can ease its debt load, buying the retailer some time ahead of the critical holiday shopping season, Bloomberg...Retailread more
Shares of data center hardware company Pure Storage plunged 25% Wednesday, a day after the company reported a wider-than-expected loss and lowered its full-year guidance.
The struggles highlight some of the challenges of selling products to large companies -- that it can take longer than expected, and that competition can be tough.
Pure Chief Financial Officer Tim Riitters told analysts on a conference call on Wednesday that some business intended for the most recent quarter ended up sliding into the next one.
"As you engage in these larger deals, they go sometimes on their own cycles," Riitters said.
Pure closed at $15.50 and suffered its worst day ever as a public company, shaving about $1 billion off its market value.
Pure debuted on the New York Stock Exchange in October 2015, pricing shares at $17 in its IPO.
Following Pure's fiscal first quarter earnings report, Piper Jaffray analysts moved their estimate down from $25 to $20, Stifel lowered its 12-month price target on Pure from $22 to $20,and KeyBanc Capital Markets pulled down its target from $30 to $25.
"Despite the miss, the company is still generating healthy growth well above peers and we believe the execution issues are fixable. However, since this is the second consecutive miss and DSOs [days sales outstanding] are now at an all-time high, we are concerned with the elongated sales cycles in the enterprise space, but believe the new guidance appropriately accounts for this," wrote Piper Jaffray's Andrew Nowinski and James Fish, who are maintaining their overweight rating on Pure.
Alex Kurtz and Steve Enders at KeyBanc observed that there was some good news in the quarter -- namely that Pure's billings of $355 million beat consensus estimates among analysts as some customers signed up for longer-term contracts, and that the company's product gross margin, at 68.7% in the fiscal first quarter, was higher than it's been in three years. The analysts kept their overweight rating on Pure even as they lowered the price target.
"We see an intense competitive environment from incumbents adding to the near-term industry headwind, causing us to take a more moderate outlook on the stock until we see improved execution," they wrote.
Pure executives said on Wednesday's call that they've been seeing larger deal sizes of late.
"We understand that Pure's move up market puts them in the lion's den of fiercely defended accounts where incumbent OEM relationships run deep, and as such, the turf could be getting more competitive," BTIG analysts led by Edward Parker wrote in a Wednesday note. The analysts kept their buy rating and $28 price target.