NetApp made a reduced profit in its first fiscal 2012 quarter, reflecting a sudden US sales drop-off attributed to public sector and financial services buying slowdowns. Revenues for the quarter, which finished on 29 July, were $1.458bn: a healthy 26 per cent increase on the $1.154bn seen a year ago but lower than the Street's …

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Thursday 18th August 2011 11:05 GMT Peter Gathercole

It never ceases to amaze me

how a company generating quite respectable profits gets blasted for not reaching other peoples projected figures for unknown future business.

I'm just waiting for the shares to slide. It just indicates to me how badly broken the Corporate Capitalism economic model actually is.

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Thursday 18th August 2011 15:57 GMT Billl

re: It never ceases to amaze me

A companies current market value is equal to it's intrinsic value as well as it's future value. The market makes an estimate, based on company statements, of the future value. If for some reason that future value comes into question, then the market reacts. This is not rocket science (have you met the average financial guy?) Generally, like normal human reaction, the markets overreact. In the long run, however, the value will come to an equilibrium. That is why most honest advisers recommend a long view and eschew day trading.

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