Rubrik: Expiration Of IPO Lockup Overshadows Strong Results

(9min)

Summary

  • Rubrik's stock dipped post-earnings despite beating guidance and raising its full-year outlook, likely due to the upcoming IPO lock-up expiration.
  • RBRK remains unprofitable even on a non-GAAP basis, but its large cash position can support ongoing losses.
  • The company's cybersecurity positioning makes it a mission-critical product for its customers.
  • Despite the near-term stock weakness and poor profitability metrics, I reiterate my buy rating due to strong growth potential and a solid balance sheet.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed Growth Stocks get exclusive access to our subscriber-only portfolios. Learn More »

Cloud Computing Technology

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Rubrik (NYSE:RBRK), one of the notable tech IPOs this year, saw its stock sink slightly after reporting earnings after the bell on Monday. The company comfortably beat on quarterly guidance and raised its outlook for the full-year. I suspect that the

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This article was written by

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Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RBRK either through stock ownership, options, or other derivatives. 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.

I am long all positions in the Best of Breed Growth Stocks Portfolio.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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