Pure Storage (NYSE: PSTG) shares plunged 16.81% during Wednesday's intraday session, extending losses after the data storage company reported mixed fiscal Q3 results. While revenue grew 16% year-over-year to $964.5 million (above estimates), net income fell 15% to $54 million due to soaring operating expenses ($643.5 million, up 23%).

Analysts at JP Morgan and Citigroup cut price targets to $105 (from $110), citing concerns over Pure Storage's plan to reinvest hyperscaler revenue into R&D and marketing, which may pressure margins in fiscal 2027. Susquehanna downgraded the stock to "Neutral," questioning the scalability of its flash memory business. The company's lack of clarity on hyperscaler sales projections further spooked investors.