Hello everyone,
I have held Pure Storage $PSTG (+2,65%) in my portfolio for some time now and am considering adding to my position again and would like to share my thoughts with you. Perhaps it will help some of you in your decision-making process.
A look back at why Pure Storage became big in the first place...
Pure Storage is basically the classic disruptor. When they started in 2009, the industry laughed at them because they were fully committed to flash storage while everyone else was still relying on the cheaper but slower mechanical hard disks.
However, their biggest highlight was not just the hardware, but the business model.
With the "Evergreen" concept, they solved a huge problem for IT departments: replacing old hardware.
With Pure, you buy once and only replace the computing modules via a subscription, while the data stays where it is. This has earned them an extremely loyal customer base and has put the competition such as Dell $DELL (+0,94%) or NetApp $NTAP (+2,04%) look old for years - to put it bluntly....
How will things look at the end of 2025?
The latest figures from December show a stable picture, even if the stock market has reacted nervously as usual. Turnover is growing at a double-digit rate of 16%, which is not unusual for the industry.
What impresses me more, however, is the shift towards the service business. Almost half of the turnover now comes from subscriptions (SaaS - Storage-as-a-Service).
Financially, the company is a real fortress. They have around 1.5 billion dollars in cash and practically no debt.
The current share buyback program has now been impressively increased again.
The gross margins of over 70 % also underline the fact that they don't have to fight price battles, but can assert their technology as a premium product.
And what could the near future look like?
For 2026, I see three decisive points that could drive the course.
1. AI infrastructure:
The partnership with Nvidia is not a marketing stunt. AI models need extremely fast access to data. With the new FlashBlade systems, Pure delivers exactly what data centers need for training LLMs.
2. the energy factor:
This is often underestimated. Pure systems require up to 85% less power than conventional storage. In times of exploding electricity costs in data centers, this has become a tough selling point.
3. hyperscalers:
The fact that one of the really big cloud providers is now relying on Pure technology is an accolade. If others follow suit, we will be talking about completely different revenue dimensions. We don't know who it is yet, but it will be Microsoft $MSFT (+1,22%) or Meta $META (-0,37%) tipped
Is the share cheap? No, I don't think so. The market has already priced in the positive developments.
But my experience so far has often shown that the supposedly "expensive" shares have performed better than the undervalued ones.
And since I already have them in my portfolio with a double-digit plus, I can easily withstand the volatility 🤑🤞🏼
