Pure Storage Shares Climb on AI Bets Despite Short-Sellers as $320M Volume Ranks 337th

On September 4, 2025, Pure Storage (PSTG) rose 1.08% with a trading volume of $320 million, ranking 337th in market activity. The stock faced a short position from Kerrisdale Capital, which criticized its $27 billion valuation and questioned its competitive edge in enterprise storage. The hedge fund argued that Pure’s QLC flash-based products lack viability in hyperscaler environments and highlighted a 5-6x total cost of ownership advantage for hard disk drives over flash solutions. Kerrisdale also downplayed Pure’s software licensing deal with Meta, suggesting limited hardware sales potential and narrow capabilities.

Analysts noted Pure’s positioning in AI infrastructure, citing its high-density, low-power FlashBlade systems as suitable for data-intensive workloads. A partnership with Meta to power data center storage was highlighted as a strategic advantage. However, Kerrisdale emphasized that Pure’s software revenue stream relies heavily on maintenance and support, which it deemed insufficient to justify SaaS valuation multiples. The stock has gained 25% year-to-date, reflecting resilience amid sector-wide volatility.

Backtest results indicate that PSTG has delivered a 25% return from the beginning of 2025 through September 4, despite the recent short-term pressure. This performance underscores mixed investor sentiment between long-term AI infrastructure bets and skepticism over near-term execution risks.