Baseless Mania for NetApp

After NetApp (NTAP) reported its second quarter last week, the stock flew higher as a wave of optimism washed over the shares. Short-sellers covered their positions as tech investors backed up the truck. (Tech investors can't help themselves.) Once the stock popped higher, the analyst community jumped on board, upgrading the shares and slapping target prices on it as high as $40. But, while it can be exciting to choose a big turning point, I remain unconvinced.

Last week NetApp reported fiscal second-quarter earnings of $0.37, or $0.03 ahead of the consensus estimate. Revenue came to $1.54 billion, up 2.3% year over year. Management attributed the stronger-than-expected performance to the software and services business. Software and maintenance revenue was up 10.8% to $219.4 million, and service revenue rose 11.3% to $326.0 million....203 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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