- Splunk pre-announced solid results ahead of estimates on Revenue, ARR, Cloud ARR, and operating margin. Splunk also announced CEO transition.
- Splunk appointed Graham Smith, former CFO of Salesforce, as its interim CEO and began a search for a new CEO which is expected to take two or three quarters.
- We believe Splunk's position within the industry remains unchanged. The company is in a better position than the stock multiple reflects.
- Splunk is cheap and is trading at a discount to its peer group. Adjusting for growth makes Splunk even cheaper, highlighting the valuation discrepancy.
- Investors should buy shares of Splunk here, given that the stock is cheap, growth drivers are intact, and the sentiment should improve from here with the arrival of the new CEO.
For further details see:
Splunk Sell-Off Is A No-Brainer Buy Opportunity; Too Cheap To Ignore