One of last year's biggest tech IPOs is getting smoked
The flash storage provider's stock is now down over 16% as of Friday afternoon (EST), trading at near lowest levels since going public in October 2015.That's brought the company's total market cap down to $2.43 billion, a big drop from the $3 billion valuation it drew in the private market pre-IPO, and the $2.9 billion market cap it debuted at in the public market.
The note cited higher competition and pricing pressures, as well as lower than expected pipeline growth, which could be a negative to the company's earnings due next week. It's also a concern that Pure Storage failed to provide full year revenue guidance in its last earnings report, according to Motley Fool.Pure Storage raised $470 million in private funding before going public last year. It was one of the most anticipated tech IPOs, but its market debut was a bit disappointing as it closed slightly below the $3 billion private market valuation on its the first day of trading.
Here's a chart of Pure Storage's stock movement since its market debut:
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