Splunk: It Starts To Get Interesting

Nov. 11, 2022 2:45 AM ETSplunk Inc. (SPLK)1 Comment
Z Kassotakis profile picture
Z Kassotakis
449 Followers

Summary

  • Splunk's stock price has dropped almost 30% YTD and it only keeps dipping.
  • Splunk's revenue is estimated to grow at about 20% annually.
  • However, as of today, the company has never made a dollar in profit.
  • Splunk has a net retention rate of 129%.
  • I rate Splunk as a HOLD.

Splunk headquarters in San Francisco

Sundry Photography

Investment Thesis

If you are an investor in 2022 you have probably seen your portfolio falling drastically since the beginning of the year. Every sector, every company, especially tech stocks, has lost a significant chunk of its market capitalization and Splunk (

Splunk (<a href='https://seekingalpha.com/symbol/SPLK' title='Splunk Inc.'>SPLK</a>) business model

meeracapital.substack.com

Splunk Revenue Growth

Splunk IR

dates

SeekingAlpha

Splunk net income

SeekingAlpha

Splunk net retention rate

Splunk IR

Splunk Valuation

SeekingAlpha

Splunk fundamental analysis

Author's Calculations

This article was written by

Z Kassotakis profile picture
449 Followers
I'm a systematic investor who makes his decisions based on fundamental analysis. I make money by investing in companies whose price is lower than what I consider to be their intrinsic value. This is how I achieve to have a greater-than-average chance of beating the market over the long run. I try to be as conservative as possible when it comes to my assumptions and that is why when I consider a stock to be a BUY, it is usually a great bargain!

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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