Why Pure Storage (PSTG) Stock Is Tumbling Today

Pure Storage (PSTG) stock is lower in afternoon trading on Friday, after fellow data storage company Nimble Storage (NMBL) reported a fiscal 2016 third quarter earnings and revenue miss.
By Rachel Graf ,

NEW YORK (TheStreet) -- Pure Storage (PSTG) - Get Report stock is slumping 12.36% to $15.25 on heavy volume in afternoon trading on Friday, as competitor Nimble Storage's (NMBL) fiscal 2016 third quarter earnings and revenue miss ignites concern about the data storage sector. 

Pure Storage is an enterprise data flash storage company, based in Mountain View, CA. 

After yesterday's market close, flash storage solutions company Nimble Storage reported a loss of 14 cents per share on revenue of $80.7 million. Analysts had forecast for a loss of 8 cents per share on revenue of $87.7 million.

Nimble Storage now expects a fiscal 2016 fourth quarter loss between 11 cents per share and 13 cents per share.

Nimble Storage stock is getting hammered, down 50.51% to $10.09 this afternoon.

About 4.23 million shares of Pure Storage have been traded so far today, more than triple the company's average trading volume of roughly 1.15 million shares per day.

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