Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Barracuda Networks: Start Of The End Of The Firewall, As We Know It

Barracuda Networks (CUDA) stock is down 50% from the IPO price, two years ago. The correction is more than just a reaction to the broader market blues. The weakening macro dynamics in the cloud based security space and small cap growth names suggest any efforts to pick a bottom may be proven ill timed, since the company as well as sector specific indicators have just started to weaken the valuation premium enjoyed by most players in the space, including the acquisition premium.

Late last week, the company missed numbers again and reduced revenue guidance by a few percentage points from the consensus. Not a big deal, some may say, if revenue grew by 14%, especially now that the

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