TDC - Why Teradata Stock Is Down 8% on Friday Afternoon
2024-07-19 12:41:00 ET
Teradata (NYSE: TDC) stock tumbled in early trading Friday, hurt by a new sell rating from a UBS analyst who warned that customers are preparing to abandon the cloud-based enterprise analytics company.
As of 12:30 p.m. ET, Teradata stock was already down roughly 8%.
Teradata has told investors that it expects to generate $1 billion in annual recurring revenue from its public cloud business in 2025 (cloud ARR was $528 million last year and up 10 times in four years), and $450 million in positive free cash flow. But according to UBS analyst Austin Dietz, these numbers are at risk. Customer checks among Teradata's clients show that 6 out of 7 customers surveyed "are migrating off Teradata in the next 6-24+ months," writes Dietz in a note covered on StreetInsider.com today.
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Why Teradata Stock Is Down 8% on Friday Afternoon