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Splunk, Inc. Message Board

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  • rantangan rantangan Jun 13, 2012 7:45 PM Flag

    This better than ZNGA and GRPN?

    You are absolutely right. Why would SPLK want to go viral? Because they can't and their products and business models by no mean can take advantage of going viral.

    I have no doubt about the company fundamentals. And you seem to understand their fundamentals very well. I wished all investors were like you. But then again, if all investors were like you, there wouldn't be an IPO-day pop. Stock prices would not fluctuate and it's boring.

    I'm talking about the 99% of investors (not exact figure but 99% is so trendy nowadays). They bought into the IPO-day pop, they expected it would go even higher. Disregarding the fact that at 25% growth this company at current price is way overvalued. It's still overvalued using 3 years in the future revenue at 25% growth. I'm not including the fact that the company spends $1.06 for every $1 of revenue. The sustainable cash flow is still questionable until they prove they can spend less than $1 for $1 revenue.

    They may not have to spend heavily on marketing but they do on every R&D and product integration.

    So for now, the price is good at $14.50 and it should go up 25% every year. Maybe a little pop when they are no longer in red. Hopefully the 99% will soon enough realize that and refuse letting the 1% controlling them.

    But again the 1% has always been controlling the 99%.

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