Kerrisdale Capital short Pure Storage, says hyperscaler strategy to ‘disappoint’

Kerrisdale Capital stated on X that the firm is short Pure Storage (PSTG). In a series of posts, the firm said: Pure Storage has gone from disruptor to disrupted. We believe its hyperscaler strategy will disappoint, while its core enterprise storage products face declining differentiation… Pure insults investors by suggesting leading hyperscalers such as Google and Amazon would adopt its products if they only looked at total cost of ownership. These companies are arguably the most sophisticated IT buyers on the planet, and they aren’t buying $PSTG’s products… Our detailed TCO analysis confirms what we heard from hyperscaler storage architects: HDDs still maintain a 5-6x cost advantage over flash-based solutions for bulk storage applications and the HDD “access density” issue is a red herring.”