Big Data Crushers Have Peaked For Now, Regardless Of Hortonworks' Upcoming Earnings

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About: Cloudera, Inc. (CLDR), HDP, Includes: DPS-OLD, IBM, MSFT, RHT
by: Virginia Backaitis
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Virginia Backaitis
Momentum, IPOs, software, tech
Summary

Big data crusher Hortonworks, whose primary income comes from supporting and providing services around its version of open-source Apache Hadoop, announces earnings February 8.

Hortonworks shares soared 142% in 2017, but have been on a gradual downslide in 2018.

Hortonworks’ rival Cloudera traded as high as $23.35 in 2017, but ended the year at $16.52. It has gradually risen in 2018, but has broken $19 only once.

Gartner, a leading technology analyst firm, recently reported that 45 percent of firms using Apache Hadoop are using the 100% free do-it-yourself version, meaning that they are not buying it from anyone. It's important to note that a third vendor, MapR, owns part of the Hadoop market.

The Hadoop market has topped out, as Microsoft reduced its prices for Hadoop-as-a Service (Hadoop distribution provided by Hortonworks) in Q4. Both Hortonworks and Cloudera have other products in their pipelines, which Hortonworks will no doubt talk up during the earnings call. Regardless, there are better bets in a bull market.

Hortonworks (NASDAQ:HDP), one of three independent providers of big-data-crushing software based on open source Apache Hadoop, was one of the highest performing tech stocks of 2017. It opened 2017 at $8.42, soaring as