Alan Brochstein, CFA
Contrarian, growth at reasonable price, management change, cannabis stocks

SolarWinds: $120mm Cloud Deal Knocks Off More Than $400mm In Market Cap

The month of May was rough for software company SolarWinds (NYSE:SWI), with the stock dropping 17%. The high-flier, still up 237% since its IPO four years ago, has now lost about 1/3 of its value since posting an all-time high two months ago. Poor execution in Q1 reported after the close on 4/30 was the first hit from a one-two punch, with a dilutive acquisition announced weeks later pushing the stock below $40 briefly.

SWI data by YCharts

Fellow Seeking Alpha Contributor Stephen Simpson took a look at SWI in early April and concluded that the stock was too expensive, but after this steep decline, I think that SWI is attractive enough to buy that I added it...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details