Tintri Inc. (NASDAQ:TNTR)
Shares of Tintri Inc. (NASDAQ:TNTR) fell 16.67% as investors reacted to disappointing second quarter earnings that failed to meet Wall Street expectations. Law firms have since lodged class action lawsuits, arguing that the company provided misleading statements in the run-up to its IPO.
Tintri Inc. (NASDAQ:TNTR)’S sentiments on the street have turned sour ever since it became a public company. Sellers appear to be in full control of the stock as it continues to trade at the lower end of a $2.90 – $3.61 trading range. The stock is currently trading in a downtrend as it continues to hit lower lows.
Given the strength of the selling pressure, the stock could register a new 52-week low after losing more than 40% of its IPO share value. One of the reasons the stock is receiving a lot negative news is its failure to meet second quarter guidance even as revenues grew by double digits.
Tintri Inc. (NASDAQ:TNTR) develops and markets an enterprise cloud platform that combines cloud management software and a range of all-flash storage systems. The platform is designed to provide cloud service providers as well as organizations, capabilities for managing data centers and public cloud services.
The enterprise cloud provider reported revenues of $34.9 million for the second quarter. While revenue was up by 27% year over year, it came in at the lower end of the company’s guidance, a performance seems to have spooked investors fuelling the sell-off wave.
Tintri Inc. Defense
A bid by the CEO, Ken Klein, to try and tout areas where the company performed extremely well in Q2 has done little to revitalize investor’s sentiments on the stock.
“We remain confident in our competitive position and in the strength of our value proposition. In the quarter, we received the largest order in the company’s history and added new enterprise logos. Additionally, we experienced continued momentum in our land-and-expand strategy with more purchases from current customers,” said Mr. Klein.
During the company’s second-quarter earnings conference call, the Chief Executive Officer attributed the lower than expected Q2 revenue to distraction, disruption, and sales attrition during and after the IPO.
Tintri Inc. (NASDAQ:TNTR) stocked plunged 31% to close at $4.55 in the wake of the CEO sentiments, something that law firms argue could not have happened had the company provided accurate statements.
Law firms led by the likes of Khang & Khang LLP and Rosen Law Firm have lodged investigations into whether the company provided misleading statements in the run-up to its public offering.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.