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Two similar companies that I can think of that went public recently is Splunk (SPLK) and Hortonworks (HDP) - their stock is trading mostly sideways, nothing exc

Two similar companies that I can think of that went public recently is Splunk (SPLK) and Hortonworks (HDP) - their stock is trading mostly sideways, nothing exciting. Not sure what to attribute this to - having reliable business clients pay for your software seems like very solid business to me, after all isn't that how IBM's and Oracle's of this world came about. I suspect it comes down to how competitive this space is. Campfire used to be the thing not long ago, and then everyone went to Slack - who's to say that another competitor will not emerge and everyone will ditch their Jira's for something better?

volaski 11y ago
"Reliable business" is a double edged sword in this case because reliable also means predictable. A lot of blue chip companies get their high valuation because the public can see the potential but not completely so. Whereas companies like Splunk or Hortonworks it's pretty much predictable how they will keep making money (at least for the next couple of years assuming that nothing surprising will happen)
- 7Figures2Commas 11y ago
  > Whereas companies like Splunk or Hortonworks it's pretty much predictable how they will keep making money... Huh? Neither Splunk nor Hortonworks are profitable.
  - volaski 11y ago
    I guess i should have been clear. I meant "making money" as in having a business model. Being profitable and having a business model are two different things. We can ask Amazon
    - adventured 11y ago
      Ok, so let's ask Amazon: they are both profitable and have a business model (further, for years running now, they've been able to demonstrate profitability whenever they feel like it to satisfy Wall Street worries). Their retail business has always had low margins, no different than Walmart by comparison.
nemo44x 11y ago
SPLK is up about 60% since their debut in 2012 after gaining more than 150% and then coming back to reality where it is today - up 60%. Wouldn't call it sideways. HDP on the other hand is pretty much where it started.

volaski 11y ago

"Reliable business" is a double edged sword in this case because reliable also means predictable. A lot of blue chip companies get their high valuation because the public can see the potential but not completely so. Whereas companies like Splunk or Hortonworks it's pretty much predictable how they will keep making money (at least for the next couple of years assuming that nothing surprising will happen)

7Figures2Commas 11y ago
> Whereas companies like Splunk or Hortonworks it's pretty much predictable how they will keep making money... Huh? Neither Splunk nor Hortonworks are profitable.
- volaski 11y ago
  I guess i should have been clear. I meant "making money" as in having a business model. Being profitable and having a business model are two different things. We can ask Amazon
  - adventured 11y ago
    Ok, so let's ask Amazon: they are both profitable and have a business model (further, for years running now, they've been able to demonstrate profitability whenever they feel like it to satisfy Wall Street worries). Their retail business has always had low margins, no different than Walmart by comparison.

nemo44x 11y ago

SPLK is up about 60% since their debut in 2012 after gaining more than 150% and then coming back to reality where it is today - up 60%. Wouldn't call it sideways. HDP on the other hand is pretty much where it started.