- Splunk was one of the pioneers in using computer logs to analyze application and network performance and to detect anomalies.
- The company has been through a messy transition to a cloud/consumption based revenue model.
- Valuations have compressed substantially, particularly as the company has started to generate substantial free cash flow.
- The company has new leadership with a track record in cyber-security.
- Results of the last two quarters were remarkably encouraging, but in the midst of the rerating of IT valuations, the shares haven't really responded to favorable operational performance.
For further details see:
Is It Time For Splunk Shares To Come Out Of Their Cave?