QTWO: Overvalued Cloud Play with medium term catalysts ahead
Cloud Computing Fever has resulted in yet another poor quality IPO hitting the market. Q2 Holdings (NYSE:QTWO) is a provider of cloud based virtual banking solutions for US Regional and Community Financial Institutions, or RCFI's. QTWO generates revenue from RCFI's who may not have the scale or resources to build out their own internet/online presence.
Is this a good business model?
I'm all for supporting and strengthening local communities, which QTWO's solutions support, however when it comes to investment decisions I'm really interested in if the stock price will go up or down. The stock price for QTWO will go down for the following reasons;
No real economic moat....
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