Enterprise tech momentum plays have an ugly day


Today's rout in tech momentum names (the latest in a string) has been especially harsh on enterprise cloud software, security, and big data/analytics plays.

Major cloud software decliners: NOW -11%. WDAY -9.6%. N -6.5%. CNQR -7.2%. SAAS -6.3%. TXTR -6.3%. ULTI -5.5%. DWRE -8%. MKTO -6.2%. CSLT -9%. RALY -7.2%.

Salesforce (CRM -4.1%) is following the group lower after announcing plans to offer industry-specific cloud software solutions. Pac Crest thinks Salesforce's top-line will benefit, but is cutting its EPS estimates on margin concerns.

Security decliners: FEYE -10.3%. PANW -8.2%. KEYW -5.7%.

Big data/analytics decliners: DATA -7.4%. SPLK -6.9%. QLIK -4.1%. Splunk's selloff comes in spite of a two-notch CLSA upgrade to Outperform.

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Comments (10)
  • Stirling Capital Management
    , contributor
    Comments (233) | Send Message
     
    KEYW is not a software company primarily so not sure why they are being compared to FEYE as they are two totally different businesses
    3 Apr 2014, 04:52 PM Reply Like
  • Eric Jhonsa
    , contributor
    Comments (1276) | Send Message
     
    They were in the security category, not cloud software. FEYE, of course, isn't purely a software firm either.
    3 Apr 2014, 05:00 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10596) | Send Message
     
    Short TXTR, CRM, FEYE, and PANW. TXTR probably a $0.00. FEYE having a rough time around lockup expiration.
    3 Apr 2014, 05:53 PM Reply Like
  • BBwetrust
    , contributor
    Comments (2872) | Send Message
     
    Agree. I'm too scare to short high flyers like FEYE. What a following knife! You can't get a better definition than this.
    4 Apr 2014, 08:41 PM Reply Like
  • bazooooka
    , contributor
    Comments (3684) | Send Message
     
    TXTR trading at 15x revenue and lost 35M last year; what's not to like? Heck,it might take them a few years to burn through the rest of their IPO money. Hard to handicap their hard assets when you're not sure what will be there for any liquidators. Maybe their plants and equipment are worth 10 Million.
    3 Apr 2014, 06:51 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1838) | Send Message
     
    Like the other companies mentioned, their greatest asset is ability to sell stock while bubble has not fully deflated. But time decay on that seems to be speeding up ...
    3 Apr 2014, 10:06 PM Reply Like
  • satyr
    , contributor
    Comments (1512) | Send Message
     
    Noticed that DWCH took a big hit, as well. I'm unclear on what the catalyst was for the drop in all of these names.
    3 Apr 2014, 08:12 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1838) | Send Message
     
    was there really meaningful catalyst for them to be so much in the first place?
    3 Apr 2014, 09:53 PM Reply Like
  • chongkim74
    , contributor
    Comments (1624) | Send Message
     
    Man, how low will KEYW go? Don't know when to get in...
    7 Apr 2014, 12:20 PM Reply Like
  • ikarus
    , contributor
    Comments (1190) | Send Message
     
    Probably going to fair value of $6-8 lol
    8 Apr 2014, 02:23 PM Reply Like
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