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After a rapid ascent-a pause that refreshes and the opportunity to buy a position
Rubrik (NYSE:RBRK) shares have appreciated substantially over the past several months. But their ascent has recently paused in the wake of a
Why Rubrik Shares Are Still A Compelling Buy
Summary
- Rubrik's recent share price pullback offers a compelling entry point, as the company continues to deliver hyper-growth and improving free cash flow margins.
- Rubrik's unique preemptive recovery engine and expansion into identity recovery differentiate it in a massive, fast-growing market, supporting sustained 35%+ CAGR.
- Strategic moves like the Predibase acquisition and Annapurna initiative position Rubrik for long-term leadership in both data and identity security.
- Despite premium valuation and volatility, Rubrik's execution, innovation, and market leadership justify a continued buy rating for growth-oriented investors.
- Consensus estimates are more than a bit conservative, providing the opportunity for reported quarters that beat estimates and see increased guidance.
Bert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space. In 2001, Mr. Hochfeld formed his own independent research company, Hochfeld Independent Research Group, which provided research services to major institutions including Fidelity, Columbia Asset, SAC Capital, and many other prominent institutions and hedge funds. He also operated the Hepplewhite Fund, a hedge fund that specialized in technology investments. Hedge Fund Research, an independent 3rd party firm that specializes in ranking managers, rated the Hepplewhite Fund as the best performing small-cap fund for the 5 years ending in 2011. In 2012, Mr. Hochfeld was convicted of misappropriating funds from a hedge fund he operated. Mr. Hochfeld has published more than 500 articles on Seeking Alpha, all dealing with companies in the information technology space. Highly esteemed for his investment wisdom accumulated over decades, Mr. Hochfeld ranks in the top 0.1% of Tip Ranks analysts for his selection of information technology stocks and their subsequent successes.
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.
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