- NetSuite has been one of the fastest growing ERP companies. Revenue has grown at a CAGR of 25.6% from 2009-2013.
- Despite over 30% revenue growth, the company's stock has fallen 19.2% over the last year. Investors are disappointed with the company's current growth rate.
- Although the stock declined, the stock is still trading at a very high valuation. In order to keep their valuation, NetSuite will have to maintain their high double digit growth.
- Yet, NetSuite is moving into the enterprise market and will need to gain market share to maintain growth. This market is more competitive and market share gains are more difficult.
- NetSuite is going to face stiffer competition which should slow growth. The slower growth and high valuation will result in an under performing stock.