Pure Storage, Inc. (PSTG): A Bull Case Theory

We came across a bullish thesis on Pure Storage, Inc. on Disruptive analytics’s Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on PSTG. Pure Storage, Inc.’s share was trading at $77.61 as of August 29^th. PSTG’s trailing and forward P/E were 190.20 and 41.15 respectively according to Yahoo Finance.

Pure Storage (PSTG) has rewarded investors with strong returns, up 112% over the past two years, though its trajectory has been volatile. The company delivered robust Q2 2025 results, with revenue climbing 13% year-over-year to $861 million, surpassing expectations and prompting an upward revision to full-year guidance. PSTG’s value proposition lies in its advanced flash memory technology, which not only delivers faster and more reliable data access but also reduces energy consumption by 80% compared to legacy hard disk systems. This sustainability advantage has fueled customer adoption, exemplified by a $390 million contract with Meta, underscoring the company’s ability to win large-scale deals and maintain a competitive edge.

Despite these operational tailwinds and a long runway for growth, the stock is not trading at a discount, and current levels may not represent the most attractive entry point. While PSTG continues to execute effectively, prospective investors may benefit from waiting for consolidation, with the $72 range—where the stock traded prior to April’s Liberation Day rally—emerging as a potential buying zone. For existing holders, portfolio allocation considerations may drive selling decisions rather than company fundamentals, as PSTG remains fundamentally strong.

Overall, PSTG represents a high-quality growth story supported by rising demand for efficient data solutions, differentiated technology, and expanding customer wins. The stock’s premium valuation suggests limited near-term upside, but a pullback could offer a compelling opportunity for long-term investors to capitalize on its durable competitive positioning and sustained growth prospects.

Previously we covered a bullish thesis on Pure Storage, Inc. (PSTG) by Magnus Ofstad in March 2025, which highlighted subscription-driven growth, resilient fundamentals, and long-term AI-driven demand. The company’s stock price has appreciated approximately 57% since our coverage. This is because the thesis played out with strong execution and revenue growth. The thesis still stands as secular demand remains intact. Magnus Ofstad shares an identical thesis but emphasizes valuation discipline.

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Disclosure: None.