7 Worst Cloud Stocks To Buy According to Short Sellers 

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6. Nutanix Inc. (NASDAQ:NTNX)

Short Interest: 9.94%

On May 28, Piper Sandler lowered its price target on Nutanix Inc. (NASDAQ:NTNX) to $60 from $63 and kept an Overweight rating on the stock. The downward price target revision still reflects 28% upside from current levels. The price target revision came after the company announced its Q3 2026 earnings report.

On May 28, Nutanix Inc. (NASDAQ:NTNX) posted its Q3 2026 earnings. The firm reported revenue of $703 million, which comfortably beat the Wall Street consensus of $690 million. The earnings per share came in at $0.47, which exceeded the analysts’ estimates of $0.36. The company’s free cash flow stood at $197 million, which represented a 28% margin.

The company remains cautious on Q4 guidance due to the Middle East conflict, as the situation remains uncertain in the region, affecting the company’s business. For Q4 2026, the company has raised its revenue guidance to between $725 million and $745 million. Free cash flow is expected to reach $760 to $780 million.

Nutanix Inc. (NASDAQ:NTNX) operates an enterprise cloud platform across the Middle East, Europe, Africa, North America, Latin America, and the Asia Pacific. The company delivers hyperconverged infrastructure software, Nutanix Cloud Infrastructure, Nutanix AHV, Nutanix Cloud Platform, and others.

While we acknowledge the potential of NTNX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NTNX and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Worst Cloud Stocks To Buy According to Short Sellers.

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