JMP has cut Teradata (TDC -2.7%) to Market Perform. The firm is worried platforms such as the Hadoop big data framework, Amazon's Redshift data warehousing service, and NoSQL databases will limit the data warehousing hardware/software vendor's growth.
Teradata has been beset by Hadoop concerns for some time. Likewise, shares fell in 2012 (along with those of peer Informatica) when Amazon unveiled Redshift, replete with aggressive pricing and big performance promises.
NoSQL, often used in big data projects, can deliver better scalability and support more data formats than conventional SQL databases (such as those used in Teradata's projects), albeit at the cost of data consistency.
JMP: "While we acknowledge that Teradata is not an 'expensive' stock, we simply believe that the 'price per terabyte' trendline is downward sloping and that Teradata may struggle to grow."
Shares dove last month after Teradata offered a full-year guidance cut to go with a Q1 beat.