Is anyone concerned that Trump's tariff threats, extensive federal layoffs and spending cuts are going to lead to decreased IT spending? Not just the federal government, but across all sectors.
How will this impact NetApp?
14 replies (most recent on top)
Is that wishful thinking that something would happen to your Tesla so it can be totaled and you won’t take a hit on its cr-ppy resale value?
Is my Tesla safe at NetApp headquarter raleight to be specific
To who posted, "Yes he's ruining this country."
I think you need to pull your head out of your #$%. Trump is the only one who is attempting to try and clean up decades of mismanagement, waste, fraud and abuse.
If we only eliminate the deficit, we still have to pay interest on the debt, so we are still buried in $36.6 trillion of debt.
The interest on the "current" debt of $36.6 trillion is $1.224 trillion/yr
(FY=fiscal year)
FY2024 Revenue = ~$5 trillion
FY2024 Spending = ~$6.8 trillion
FY2024 Deficit = ~$1.8 trillion
The interest on the 2024 deficit alone is $66.228 billion/yr
So, even if we are deficit neutral (revenue=spending) we are still accruing debt because we take in $5T but have to service a current debt of $36.6T at $1.224T interest. In this scenario, the deficit is the interest all things being equal.
We could attempt to grow revenue through more taxes but that isn't popular. Or, we could reduce spending--by a lot. We need to stop funding everything abroad with the exception of national security. For all those demented "agenda" items, they need to stop immediately and everyone who voted for the spending needs to be identified and publicly humiliated by the people.
For all those worried about a recession, search Google for "ny fed yield curve."
Start of Inversion:
The inversion, where short-term Treasury yields exceeded long-term yields, began in July 2022.
Duration:
The inversion lasted for over two years, from July 2022 to December 2024.
Significance:
This extended period of inversion was the longest on record, surpassing the previous record of 624 days in 1978-1979.
Per the FED, the inverted yield curve is one of the most reliable indicators of an impending recession. Is it starting with the market sell off just like the 2008-2009 "great recession?" I think companies regcognize this, hence the layoffs are starting across many of them.
The potential tariff impact for NetApp is unbelievable. Less so from the tariffs that Trump implements and more from the retaliatory ones. ONTAP has a COO of the US, so every country that retaliates will have NetApp playing from x% behind because most other storage companies have buried SW costs in other cogs that don't have a US COO and while the fight might get easier in country, it' not a gimme as there are still products that have the same or higher percent of US COO.
Waaaaa: I worry about the recession this will cause, Not federal spending. A recession is coming and it will be very painful.
So what. At least the whiny liberals will have low egg prices.
The federal govt is $36 trillion in debt. It's time to clean up that mess. Stop whining!
It is also time to clean up NTAP's mess.
I seriously think the board should seek a new CEO if they are looking to grow to $10B. George has been at NTAP 10 years and the revenue has been in the $5-$6B range. There will likely be layoffs but the problem isn't at the bottom-it's at the leadership level. They are not producing and the numbers show it, and the decisions being made are not moving the needle.
Let that sink in...
If there is a recession, it will be self imposed. Trump will admit his decisions got us into recession and start reversing policies to get the economy back on track. Oh wait... we're sc--wed!
Q3 results just out - looks like a bust as far as Wall St is concerned.
And to address the last post - data may be growing but NetApp has not grown (in revenue terms) hardly at all. Last year we had 30TB drives, now 60 TB drives and at the end of this year there will be 120TB drives - going to have to sell lots more capacity just to stand still - and NetApp seems to have changed its strategy a couple of years back to become a tin shifter which is an increasingly low margin business - stack em high sell em cheap - tough times ahead
Data growth will continue and, even if the economy takes a bad turn, customers can only hold off on purchases so long. AI will fuel some of this growth but a lot is organic to support existing and new projects (even if fewer turning a downturn). Organizations have a lot of triggers to pull whether it be moving to an OpX model on prem (or in the cloud), financing with delayed payments, etc. There is plenty of pie out there and it's more important to be best positioned to take advantage of the rebound when it occurs. But, yes, a recession would certainly have some impact on near term sales. One question would be "How long?".
Yes he's ruining this country
Enjoy the ride!!
I worry about the recession this will cause, Not federal spending. A recession is coming and it will be very painful
Yes.