Market Overview

Chowdhry: Twilio And Nutanix Are Marching In The 'Junk IPO Parade'

Chowdhry: Twilio And Nutanix Are Marching In The 'Junk IPO Parade'

Cypress Semiconductor Corporation (NASDAQ: CY), a technology company that supplies the automotive, industrial and networking platforms, announced earlier this week it will eliminate 500 jobs across the world.

The company said its reduction amounts to 7 percent of its global workforce as part of a cost-cutting plan.

According to Trip Chowdhry of Global Equities Research, Cypress' layoff announcement has broader implications. The analyst suggested that the company doesn't have a "durable and sustainable business."

Related Link: Global X Adds To Thematic With 3 New ETFs

A Barrage Of 'Junk' IPOs

Meanwhile, several recent IPOs can be put in the same category as Cypress as operating a company that is not durable and sustainable. The companies include Nutanix Inc (NASDAQ: NTNX), Twilio Inc (NYSE: TWLO) and Apptio Inc (NASDAQ: APTI); all three stocks could "collapse by more than 70 percent" within the next eight to 12 months, if not sooner.

In fact, Chowdhry suggested that Nutanix, Twilio and Apptio will "be joining the previous junk IPO's" including Zynga Inc (NASDAQ: ZNGA), Groupon Inc (NASDAQ: GRPN), Fitbit Inc (NYSE: FIT), GoPro Inc (NASDAQ: GPRO), Twitter Inc (NYSE: TWTR) and Box Inc (NYSE: BOX).

Finally, Chowdhry expects around 369,000 technology sector workers to lose their job throughout 2016. These individuals unfortunately have "obsolete skills" and "will remain unemployable" and merely join the tens of thousands of technology professionals who have already permanently dropped out of the employment pool.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for NTNX

Mar 2020Wells FargoMaintainsEqual-Weight
Mar 2020Morgan StanleyMaintainsEqual-Weight
Feb 2020Stifel NicolausMaintainsHold

View More Analyst Ratings for NTNX
View the Latest Analyst Ratings


Related Articles (NTNX + TWLO)

View Comments and Join the Discussion!

Posted-In: Global Equities Research IPO IPO Bubble Technology Bubble Technology Job CutsAnalyst Color Analyst Ratings Tech Best of Benzinga

Latest Ratings

HUBGStephens & Co.Maintains52.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at