This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

NetApp Didn't Need Data Domain Anyway

EMC (EMC - Get Report) has added a key weapon to its arsenal by winning the battle to acquire Data Domain (DDUP), but rival NetApp (NTAP - Get Report) still has plenty of options to boost its own strategy.

NetApp withdrew its $1.9 billion cash and stock bid for Data Domain late Wednesday, just two days after EMC threw down a $2.1 billion all-cash offer.

Santa Clara, Calif.-based Data Domain is regarded as a trailblazer in data de-duplication, which ensures that the same pieces of information are not stored by companies. By eliminating duplicate data, the technology is seen as the solution to the current data explosion, making Data Domain an attractive target for both EMC and NetApp.

Despite losing out on what could be a crucial piece of intellectual property, NetApp's shares rose 60 cents, or 3.26%, to $18.99 Thursday, outpacing the broader advance in tech stocks that saw the Nasdaq rise 0.60%.

The firm's share price could be climbing for any number of reasons, including investors' relief that NetApp has walked away from an expensive bidding war with cash-rich EMC.

"We agree with NetApp's management that it is in the best interests of shareholders to end the bidding war at this point," wrote Kaushik Roy, an analyst at Wedbush Morgan, in a note released Thursday. "While Data Domain (at a reasonable price) would have been a great strategic acquisition, we believe NetApp has other choices."

These include enhancing the firm's existing de-duplication products, or maybe looking elsewhere for the technology, according to the analyst. Possible targets could be backup software specialist CommVault (CVLT - Get Report) or Virtual Tape Library (VTL) firm FalconStor (FALC - Get Report), he added.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CVLT $35.64 1.11%
EMC $25.81 1.98%
FALC $2.07 3.50%
NTAP $31.33 1.42%
QTM $0.71 -5.25%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs