- Barracuda Networks' stock has declined 33.9% year to date. The decline has occurred due to lower than expected revenue growth and operating income.
- Management has been trying to increase the company's growth rate over the last several years. As a result, they have entered several new market segments.
- Yet, Barracuda doesn't have a major competitive advantage in these markets. Additionally, management doesn't spend enough money to compete effectively.
- Management has simply expanded into too many market segments without a competitive advantage. Additionally, they don't have the resources to properly sell and develop products for each market.
- Even though the stock has declined 33.9%, the company isn't well positioned in any market segment to drive revenue significantly higher over the long run.