Below is a note written by CEO Keith McCullough on why we're adding Splunk (SPLK) to the short side of Investing Ideas today:
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You didn’t think I was going bullish, did you? Still looking for Tech stocks to short during the Quad 4 Tech Crash? We are. How about selling some Splunk (SPLK)? Here's a core tenet of Technology analyst Ami Joseph's short thesis: "Splunk is at a point similar to other large software companies when they hit similar revenue run rates who pivoted towards M&A. In this case, that’ll be the primary use for newly growing FCF. We think the pivot from go-go growth EV/S ratios to slower rates of growth, acquisitions, and EV/FCF ratios usually doesn’t sort out so smoothly." Sell the bounce, KM |