- Cray’s revenue is expected to grow 14% in 2014. The rapid revenue growth should continue because recently management has been able to win several sizable contracts.
- The High Performance Computing and Big Data industries are expected to grow rapidly over the next several years. Cray is well positioned to take advantage of this growth.
- Although there are only 3 major competitors, the High Performance Computing market is very competitive and profitability is suffering.
- Cray is positioned for growth but investors are pricing in a significant amount of future growth. At the current valuation, the company’s stock is very risky.