The data analytics and observability industry is growing fast, but data parsing software leader Splunk (NASDAQ: SPLK) has been a laggard over the last year. Shares are down some 35% over the last 12-month stretch, compared to double-digit percentage gains for smaller peers like Datadog (NASDAQ: DDOG) , Elastic (NYSE: ESTC) , and Dynatrace (NYSE: DT) .
Part of the reason for the underperformance is that Splunk is undergoing a transition to the cloud, and said transformation is creating some headwinds for the company's overall growth profile. It is still growing, but is valued far cheaper than its peers. On one hand, it might pay off to be patient with Splunk -- but there are also reasons to cut bait and invest elsewhere in the data analytics and observability software space.
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For further details see:
1 Reason to Buy Splunk, but 2 Reasons to Sell After the Q1 Report