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...

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