I think the market may be price anchoring a bit with Pivotal similarly to my thoughts on Nutanix. “The market” just can’t quite believe the numbers will continue, and this definition of a customer ($50,000) gives something to remain skeptical about. My view is that “the market” had things a bit more correct with the price at about $28-29 shortly after the earnings release. $31 may have been pushing it a bit, but after the next earnings if the expansion rate stays at 148% or higher, with the cash flow and earnings numbers continuing to trend more and more towards where we want to see them, I am not sure the $31 shortly after the initial earnings report as a public company will seem all that crazily high.
volfan84
Here is a link to my Nutanix price anchoring post:
http://discussion.fool.com/market-wide-price-anchoring-ntnx-3311…