why is splunk stock falling

by Dr. Bell Bogisich Sr. Published 3 years ago Updated 2 years ago

Splunk Stock Is Falling Because Earnings and Outlook Disappointed. Splunk stock is down sharply in late trading Wednesday after the data-analytics company posted disappointing financial results ...

Splunk Inc. shares declined in the extended session Wednesday after the cloud-based enterprise software company's revenue forecast fell short of Wall Street estimates. Splunk SPLK, +8.58% shares fell 5% after hours, following a 7.7% drop in the regular session to close at $111.70, a 52-week low for the stock.Dec 1, 2021

Full Answer

Why did Splunk stock fall 18%?

Apr 28, 2021 · Splunk Stock is Falling Along With Revenues. Why? No matter how hard we try to follow best practices – diversify, don’t try to time the markets, use dollar cost averaging – we always find ourselves reverting back to bad habits.

Is Splunk’s operating loss worse than its net loss?

Nov 19, 2021 · Shares of Splunk ( SPLK -7.30%) had fallen 18.9% this week as of Thursday's market close. The reason was very clear: On Monday, the company announced CEO Doug Merritt would be stepping down after...

What to expect from Splunk (SPLK) stock in Q4 earnings?

Nov 15, 2021 · Shares of data-analytics software maker Splunk fell 18% after the company said CEO Doug Merritt was stepping down and Graham Smith, its board chair, was taking over as interim CEO, effective...

How did Splunk’s arr increase to $2 billion?

Nov 15, 2021 · What happened. Shares of data analytics firm Splunk ( SPLK -8.84%) sank 17% today as of 12:15 p.m. EST. Solid third-quarter earnings for the company's fiscal 2022 (the three months ended Oct. 31 ...

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Mar 05, 2019 · Citi recommended selling Splunk stock last year as it felt that the company probably wouldn’t grow much more. After Splunk’s recent results, however, Citigroup raised its price target on SPLK ...

Is Splunk a good stock to buy?

So while the loss of its CEO is unwelcome news, Splunk is well-positioned to continue growing in the years ahead, making Splunk a good long-term investment.
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Strong recurring revenue.

Fiscal Quarter	Cloud Annual Recurring Revenue	YOY Growth
Q4 2021	$810 million	83%
Q3 2021	$630 million	71%

3 more rows

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Feb 9, 2022

Is Splunk losing market share?

While the broader market gained around 4.5% in the last year, Splunk shareholders lost 31%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 14% per year over half a decade.Feb 8, 2022

Is Splunk a buy today?

Splunk has received a consensus rating of Buy.

Will Splunk go up?

Stock Price Forecast

The 29 analysts offering 12-month price forecasts for Splunk Inc have a median target of 152.00, with a high estimate of 225.00 and a low estimate of 125.00. The median estimate represents a +47.03% increase from the last price of 103.38.

Is Splunk losing money?

Splunk reported a third-quarter loss of $343.3 million, or $2.14 a share, compared with a loss of $201.5 million, or $1.26 a share, in the year-ago period.Dec 1, 2021

Has Splunk ever been profitable?

While the company's cloud annual recurring revenue (ARR) exhibited solid growth, the company's lack of profitability, weak bottom-line performance, and premium valuation could negatively affect investor sentiment. SPLK's revenue increased 20.9% year-over-year to $901.12 million for its fourth quarter, which ended Jan.Mar 7, 2022

Is Sblk a good stock to buy?

Jefferies is very positive about SBLK and gave it a "$30.00 - $36.00" rating on Feb 18, 2022. The price target was changed from 29.36 to 0.98. Over the last 90 days, this security got 1 buy, 0 sell, and 0 hold ratings.

Is splunk a good company to work for?

92% of employees at Splunk Inc. say it is a great place to work compared to 57% of employees at a typical U.S.-based company.

What is the purpose of Splunk?

Splunk is used for monitoring and searching through big data. It indexes and correlates information in a container that makes it searchable, and makes it possible to generate alerts, reports and visualizations.

Is Datadog publicly traded?

Datadog went public on the Nasdaq exchange on September 19, 2019, selling 24 million shares and raising $648 million.

Who is the CEO of Splunk?

Gary Steele (Apr 11, 2022–)

Splunk Technology / CEO

Which of the following are mainstream competitors Splunk?

Competitors and Alternatives to Splunk

Nagios.
Cisco.
Broadcom.
Microsoft.
SolarWinds.
ManageEngine.
SevOne.
Riverbed.

What happened

Shares of data monitoring and analytics platform provider Splunk ( NASDAQ:SPLK) were hit hard on Thursday after the company delivered a disappointing third-quarter report. The stock fell by as much as 25.9%, and as of 2:24 p.m. EST, was trading down by about 21%.

So what

Splunk's Q3 results and management's guidance for Q4 were both well below analysts' expectations. Revenue came in at $559 million, down 11% year over year. On average, analysts were expecting revenue of $613 million. Splunk also reported an adjusted loss per share of $1.26 -- far behind the $0.09 per share in profit analysts had been modeling for.

Now what

Management said it expects fourth-quarter revenue to be in the $650 million to $700 million range. This compares to the analysts' consensus forecast of $778 million.

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