Pure Storage (PSTG)

Trades at a very high PE and we could higher interest rates.

It executes well, but has run up.

Excellent company. Would recommend buying. Has turned around. 

They're either up or down. Their blow-out or die, and that's too difficult for him. 

EPS of 50c beat estimates of 40c, and sales of $763M were inline. However, forecasts were lowered, with 4Q sales guidance at $782M vs prior estimates of $924M. Operating margin forecast 19% vs 21.1%. The company has seen headwins on large orders and the results were quite disappointing as some peers reported much stronger results. One very large order ($41M) was pushed out to January. With the stock decline (worst in four years) the P/E is now 23X. It has $1.1B net cash. Even with reduced guidance, growth is still expected to be 15% next year. Cash flow remains high with strong free cash flow conversion ($454M in 12 months). While disappointing for sure, not a complete disaster. The stock might flat line for a while, but the underlying trends (data centres, AI) remain positive. Insiders still own $600M in stock. We would expect a slow recovery here over time. 
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He prefers Nvidia whose performance is consistent, but PSTG has been too hit-and-miss in terms of performance for him. Pass.