Splunk Inc. | $SPLK Stock | Shares Plummet Despite Better than Expected Fiscal Q1 Earnings

Splunk Inc

Splunk Inc. (NASDAQ: SPLK)



Splunk Inc. (SPLK), cloud platform solutions company yesterday reported their fiscal first quarter 2017 financial results. Splunk reported a fiscal first quarter loss of $99.9 million.

Splunk reported first quarter adjusted earnings of a loss of $0.01 per share which beat analyst expectations of a loss of $0.05 per share. Splunk reported fiscal first quarter revenues of $242.5 million which beat analyst expectations of $233 million.  


Splunk Inc. CEO’s  Comments

“We are living in a data-driven world and Splunk enables organizations to turn massive data into answers, action and success,” said Doug Merritt, President and CEO, Splunk. “We are pleased that customers continue to adopt the Splunk platform on-premises, in the cloud and in a hybrid environment. This continued adoption, flexible deployment and our strong app ecosystem is helping us deliver on our goal of increasing their success.”  Business Wire


SPLK Technical Analysis

Splunk Inc
Splunk Inc Chart

SPLK opened trading yesterday at $66.60 which was up from the previous day’s trading close of $66.17. SPLK closed trading yesterday at $67.09 and crashed down after market to $63.25, equivalent to a 5% decrease from the closing price. Taking a look at the daily chart we can see the last time SPLK traded below these levels we have to go back to April 21st when it traded at $62.44. This is higher priced than most penny stocks I trade but still has plenty of opportunity.

Taking a closer look at the daily chart we can see that before the spike down SPLK had been in an overall upward trend dating back to April 13th when it traded at $59.49. SPLK has a float of 136.96 million shares and traded 2.81 times the normal daily trading volume on Thursday.

For trading purposes, I would like to see SPLK open trading on Friday below $64.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.35 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Splunk Inc. provides software solutions that enable organizations to gain real-time operational intelligence in the United States and internationally. The company’s products enable users to collect, index, search, explore, monitor, and analyze data regardless of format or source. It offers Splunk Enterprise, a machine data platform with collection, indexing, search, reporting, analysis, alerting, monitoring, and data management capabilities; and Splunk Cloud service.

The company also provides Splunk Light, which offers log search and analysis for small IT environments; and Splunk Analytics for Hadoop, a software for exploring, analyzing, and visualizing data stored in Hadoop and Amazon S3. In addition, it offers Splunk Enterprise Security, which addresses emerging security threats; Splunk User Behavior Analytics that detects cyber-attacks and insider threats; and Splunk IT Service Intelligence, which monitors health and key performance indicators of critical IT services, as well as Splunk App for AWS to ensure cloud security and compliance; Splunk Stream to capture, analyze, and correlate network wire data; and DB Connect to get enterprise context; Palo Alto Networks App for Splunk to gain visibility to Palo Alto Networks firewalls; and Splunk App for Salesforce.

Further, the company operates Splunkbase and Splunk Answers Websites, which provide an environment to share apps, collaborate on the use of its software, and provide community-based support, as well as offers application programming interfaces and software development kits. Additionally, it offers maintenance and customer support, training, and consulting and implementation services.

The company serves cloud and online services, education, financial services, government, healthcare/pharmaceuticals, industrials/manufacturing, media/entertainment, retail/ecommerce, technology, and telecommunications industries. Splunk Inc. was incorporated in 2003 and is headquartered in San Francisco, California.  Yahoo Finance