Splunk reported an 18% year-over-year jump in annual recurring revenues (ARR) to $3.67 billion in fiscal 2023. 31, 2023), with both revenues and earnings surpassing consensus estimates. The company reported impressive financial performance in the fourth quarter of fiscal 2023 (ending Jan. However, things may now be taking a turn for the better. Besides the broader tech sell-off, the company was also affected by its rather rough transition from a perpetual license sales model to a cloud-based subscription model. The past two years have been quite painful for the company. The company estimates its target market to be worth over $100 billion. The data is mined to derive business insights for improving outcomes in areas such as observability, security, and platform use cases. SplunkĮnterprise software company Splunk helps customers visualize and analyze internal data (records related to transactions, interactions, and operations) from various endpoint devices and digital systems in the company's network. So it seems to be an attractive pick in the current uncertain economic environment. The Trade Desk gained market share in the second half of fiscal 2022 when competitors posted negative or mere single-digit top-line growth. The Trade Desk has been quite successful in capitalizing on these trends. Finally, content owners are also opting away from ad-free subscription models, instead choosing ad-supported options on CTV. Additionally, advertisers are opting out of walled gardens and focusing on premium streaming content instead of user-generated content. Increasingly more advertisers are now shifting from linear television to connected TV (CTV) platforms. Since The Trade Desk does not own content, customers believe the company will help them make the best decisions regarding their advertising budgets. But even beyond this secular tailwind, the company itself has done several things right to drive its growth.įurther, since Meta Platforms and Alphabet own ad-supported content, customers fear being overcharged or influenced to make less-than-optimal decisions for their advertising campaigns. The Trade Deskįor the past few years, leading demand-side programmatic advertising company The Trade Desk has been a significant beneficiary of the shift of ad spending from traditional media formats (e.g., linear TV, print) to digital advertising. Let's assess why these supercharged stocks could prove to be attractive bets in the long run. However, bear markets also offer the potential to pick up strong businesses with tremendous growth prospects at relatively cheap prices.Ĭurrently, stocks such as The Trade Desk ( TTD -0.63%) and Splunk ( SPLK -0.67%) are trading at a discount of around 25% and 33%, respectively, from their 52-week highs. These conditions suggest the possibility of another bear market rally, which can be quite painful for investors. Considering the latest inflation data (for January 2023), Federal Reserve Chairman Jerome Powell has highlighted the need for "faster tightening" of the money supply and, subsequently, higher-than-expected interest rates in the coming months. equity market breathed a sigh of relief in early 2023.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |