NEW YORK (TheStreet) --Shares of Nutanix (NTNX) - Get Report began trading on the NASDAQ on Friday. The stock opened at $26.50 per share and has since skyrocketed. Shares of Nutanix were soaring 118.5% to $34.96 in mid-afternoon trading on Friday.
CNBC's Josh Lipton reported on what has propelled the San Jose, CA-based software company to the verge of becoming the best IPO debut of 2016.
"Investors are betting here that Nutanix technology can disrupt and upend a lot of traditional IT players," Lipton said during Friday's "Power Lunch."
A standard data center will come equipped with a lot of hardware. Storage, servers and a varying degree of software. "Nutanix aims to change that. It combines storage and computing power into a single product," Lipton added.
Nearly 4,000 companies now rely on Nutanix technology, he noted. "The company boasts revenue growth of some 85%, and it also has strong gross margins."
Lipton added, however, that though the initial reception to Nutanix today has been overwhelmingly positive, the company still needs to prove to investors it can sustain growth while bringing down costs.