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Why Nutanix Stock Popped Today

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What happened

Shares of Nutanix (NASDAQ:NTNX) were climbing today after the hyperconvergence infrastructure specialist forged a deal to help provide telehealth services for a community health center. 

Telehealth has been one of the fastest-growing businesses during the pandemic because it enables doctors to visit with patients remotely. Nutanix shares finished the day up 12.1% on the news.

An older man talking to a doctor on the computer

Image source: Getty Images.

So what

This morning, Delaware Valley Community Health (DVCH) said it had chosen Nutanix to provide private cloud infrastructure to enable 75% of its workforce to work remotely and deliver telehealth services to patients. Nutanix helped the health center reduce its average log-in time for electronic medical records from 171 seconds to just 19, making the telehealth process more efficient. 

The move by the health center, which handles 71,000 patient visits a year at eight locations, illustrates one fast-growing use case for Nutanix, as the cloud-computing company was able to migrate nine of DVCH’s servers onto its platform in less than 24 hours.

DVCH chief information officer Isaiah Nathaniel said: “With Nutanix we are able to continue business, and serve our patients, making me a proud CIO. Without Nutanix, I am not sure how I would be feeling right now.” 

Now what

The partnership with DVCH shows that healthcare  is a valuable growth opportunity for Nutanix as the hybrid cloud company can help medical providers access records and patient data, and securely store patient records in compliance with government standards.

Interest in telehealth has spiked during the pandemic, and shares of Teladoc (NYSE:TDOC), a leader in telehealth, have doubled year to date. Today’s deal with DVCH shows that Nutanix could capitalize on the opportunity as well. Look for some commentary from management on the growth potential in telehealth when the company reports earnings next week.

  

https://www.fool.com/investing/2020/05/20/why-nutanix-stock-popped-today.aspx
https://www.fool.com/investing/2020/05/20/why-nutanix-stock-popped-today.aspx

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