Cloud-based software provider Nutanix’s (NTNX) shares have rallied in price over the past few months due to investor optimism surrounding its strategic partnerships and increasing demand for the Nutanix (NASDAQ:NTNX) Cloud Platform. However, is it wise to add the stock to one’s portfolio now even though the company’s losses widened in the fourth quarter? Read on.Shares of enterprise cloud platform developer and provider Nutanix, Inc. (NTNX) have gained 17.3% in price over the past month, to close yesterday’s trading session at $42.96. The stock hit its 52-week high of $44.50 on September 7, due in part to investors’ optimism surrounding its strategic collaborations.
San Jose, Calif.-based NTNX entered a strategic partnership with Red Hat on July 29 to develop a powerful solution for building, scaling, and managing cloud-native applications on-premises and in hybrid clouds. It also announced a partnership with Hewlett Packard Enterprise Company (NYSE:HPE) in June 2021 to accelerate hybrid cloud and multi-cloud adoption.
NTNX was named a 2021 Gartner (NYSE:IT) Peer Insights Customers’ Choice recipient for Hyperconverged Infrastructure for the third consecutive year in June 2021. However, the company’s losses increased in the fourth quarter (ended July 31, 2021). Also, the Schall Law Firm reopened the lead plaintiff process earlier this year in a class-action lawsuit against NTNX over alleged securities law violations. A lead plaintiff and a lead counsel for the case were appointed on June 10, 2021. So, its near-term prospects look uncertain.