NetApp (NTAP) Tumbles 9% on Downgraded Rating, Price Target

We recently published 10 Stocks Investors Are Dumping. NetApp Inc. (NASDAQ:NTAP) was one of the worst performers on Tuesday.

NetApp extended losses to a second day on Tuesday, shedding 9.34 percent to finish at $94.11 apiece as investors took path from an investment firm’s rating and price target downgrade for its stock.

In a market report, Morgan Stanley downgraded its price target and rating for NetApp Inc. (NASDAQ:NTAP) by 24 percent to $89 from $117 and to “underweight” from “equalweight” previously, amid reduced enterprise budgets for storage hardware and rising memory costs, which could lead to a slowdown in revenues in 2027.

Additionally, Morgan Stanley said that while the artificial intelligence sector could provide a tailwind to the storage market, NetApp Inc.’s (NASDAQ:NTAP) 10 percent revenue exposure to public cloud is unlikely to impact results in the near term.

Morgan Stanley added that estimates from other Wall Street analysts were too high.

In other news, NetApp Inc. (NASDAQ:NTAP) recently welcomed Paul Fipps to its board of directors.

Fipps currently serves as president of global customer operations at ServiceNow and brings more than 20 years of experience driving technology-enabled growth and customer transformation. He is currently leading global sales, customer success, partner ecosystems, and field operations for the company.

While we acknowledge the potential of FRMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.