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
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|