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 Salesforce.com (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: Amazon.com (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...

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