The Misfits: NetApp (NTAP)
Who would have thought the boxes in a server room would challenge my investing framworks
One of the best parts of writing a stock newsletter is finding a company that challenges you and working through it with the audience.
NetApp (NASDAQ: NTAP) challenges me in several ways.
For one, technology companies frequently land in the “too hard” pile. I almost titled this piece, “The least technology-capable person under 60 analyzes a tech hardware company”, but that was too long for an email headline. Also, leaning on market history and hardware in tech-forward industries, data storage infrastructure sounds like a “race to the bottom” type of business.
Even as I dug into the aspects I’m more familiar with — the financial profile and management’s incentives — I kind of struggled to piece it all together. How does a company with this profile generate returns like this?
There’s only one way to find out.
Shoutout to Koyfin for their data and charts. Koyfin has become an integral part of how I screen for, track, and analyze companies. It has made the analysis process much faster thanks to having a decade of data at my fingertips instead of manually going through stacks of quarterly and annual filings.
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