One of last year's biggest tech IPOs is getting smoked

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(Wikimedia Commons)

Pure Storage, one of the biggest tech initial public offerings last year, is getting smoked on Friday after getting downgraded a week ahead of its earnings.

The flash storage provider's stock is now down over 16% as of Friday afternoon, trading at near lowest levels since going public in October 2015.

That's brought the company's total market cap down to $2.43 billion, a big drop from the $3 billion valuation it drew in the private market pre-IPO, and the $2.9 billion market cap it debuted at.

The price drop comes after the market research firm OTR Global downgraded Pure Storage to a negative rating on Friday, according to The Street.

The note cited higher competition and pricing pressures, as well as lower than expected pipeline growth, which could be a negative for the company's earnings, due next week. It's also a concern that Pure Storage failed to provide full-year revenue guidance in its last earnings report, according to The Motley Fool.

Pure Storage raised $470 million in private funding before going public. It was one of the most anticipated tech IPOs, but its market debut was a bit disappointing, as it closed slightly below the $3 billion private-market valuation on its first day of trading.

Here's a chart of Pure Storage's stock movement since its market debut:

pure collapse

(Yahoo Finance)

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