SPLK – Big Data, Big Sales and a Big Move for Splunk Stock

by Tom Taulli | November 22, 2013 11:30 am

Splunk (SPLK[1]) is showing lots of spunk today. Shares of SPLK stock are up a sizzling 23% to a new all-time high over $74. In fact, the gain for Splunk stock so far in 2013 is 157%. The company continues to show that its software is a must-have for Big Data applications.

splk-stock-splunk-stockThe catalysts for today’s big-time move in SPLK stock, of course, was a standout third-quarter Splunk earning report. Sales for SPLK came to $78.6 million — up 51%. And the Street was only looking for $71.1 million.

Plus, the outlook was also robust. For fiscal 2014, Splunk expects revenue of $291 million to $293 million. Keep in mind that SPLK stock analysts were forecasting just $280.7 million.

But the key for Splunk stock investors is that the company continues to rack up customers. In Q3, SPLK signed over 450 new ones, bringing the total to over 6,400. Just a few SPLK customers include Tesla Motors (TSLA[2]), Nasdaq (NDAQ[3]) and University of Sydney.

Of course, Splunk does continue to spill red ink. The net loss came to $16.5 million, or 16 cents a share of SPLK stock — up from $5.5 million, or 6 cents a share, in the same period a year ago. But when stripping out one-time items, the company was break-even. Meanwhile, Splunk stock analysts had a consensus of a loss of 1 cent per share. That was definitely more fuel for SPLK stock.

As should be no surprise, SPLK also continues to innovate its product offerings, which could help Splunk stock keep the momentum going. The company recently launched version 6.0 of its Enterprise platform, which provides for a rich set of analytics and data access. But SPLK has also been pushing its cloud system, called Splunk Storm, as well as mobile offerings. To this end, the company purchased BugSense, which is a top analytics tool for mobile data.

Partnerships are also key drivers (especially for SPLK stock). In Q3, the company expanded its relationship with Amazon’s (AMZN[4]) Web Services. There has also been traction with a partnership with VMware (VMW[5]).

Big Data is certainly in heavy demand from companies, which want to find ways to get a competitive edge. For the most part, Splunk has been able to build on its leadership — and that’s been reflected in SPLK stock. It’s definitely impressive, especially as companies like IBM (IBM[6]), Cisco (CSCO[7]) and Oracle (ORCL[8]) have struggled lately.

By offering top-notch products, Splunk has found a way to buck the IT slowdown — and more importantly, to keep SPLK stock moving in the right direction.

Tom Taulli runs the InvestorPlace blog IPO Playbook[9]. He is also the author of High-Profit IPO Strategies[10]All About Commodities[11] and All About Short Selling[12]. Follow him on Twitter at @ttaulli[13]. As of this writing, he did not hold a position in any of the aforementioned securities.

  1. SPLK: http://studio-5.financialcontent.com/investplace/quote?Symbol=SPLK
  2. TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
  3. NDAQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=NDAQ
  4. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  5. VMW: http://studio-5.financialcontent.com/investplace/quote?Symbol=VMW
  6. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  7. CSCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSCO
  8. ORCL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORCL
  9. IPO Playbook: https://investorplace.com/ipo-playbook/
  10. High-Profit IPO Strategies: http://goo.gl/TXQsz
  11. All About Commodities: http://goo.gl/FfP8R
  12. All About Short Selling: http://goo.gl/t5Jzb
  13. @ttaulli: https://twitter.com/ttaulli

Source URL: https://investorplace.com/2013/11/splk-stock-splunk/
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