Vince Martin
Long/short equity, value, gambling

Datalink: An Underappreciated, Long-Term Play On Cloud Computing

It would seem unlikely to find a true value stock in the cloud computing space. Fears about a 'bubble' in cloud stocks have been registered for some time, yet high-fliers such as (NYSE:CRM) and Workday (NYSE:WDAY) have continued to rise despite negative GAAP net income. (Indeed, both stocks have hit all-time highs this month.) Enthusiasm has boosted another battleground stock: (NASDAQ:AMZN), based on growth projections for its Amazon Web Services unit, which provides cloud solutions to a wide range of customers.

Yet among the triple-digit (or nonexistent) P/E ratios in the sector sits an undervalued gem: Datalink Corporation (NASDAQ:DTLK). The small-cap company sells, designs, and installs customized data center...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
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