Let's address the first issue first: recall that Splunk is heavy in the midst of a subscription transition. Graham Smith, the company's board chairman, is filling in temporarily as CEO CEO transition: Doug Merritt, who had led the company since 2015, stepped down suddenly, with no replacement named yet to date.Q4 guidance for revenue came in at $740-790 million (representing -1% to +6% y/y growth), well below Wall Street's $834 million (+12% y/y) expectations.Data by YCharts Dissecting the recent drop the bull case remains vibrantīroadly speaking, the decline in Splunk shares were driven by two factors: Recently, a new spate of weakness has kicked in: since the start of November, shares of Splunk have fallen ~30%, which matches the stock's 2021 performance - a huge underperformance versus the S&P 500's ~27% gain. With investors piling into remote-work and e-commerce stocks in 20, Splunk got left in the dust. Investors loved the big-data angle up until the pandemic began: at which point, Splunk decided to pivot its business to a subscription model, making near-term financials murky. Its technology helps businesses track and analyze machine-generated data - in other words, information generated automatically by devices on a network. Splunk, as many investors are aware, has long been one of the core big data plays in the enterprise software arena. Such is the case with Splunk ( NASDAQ: SPLK), a one-time Wall Street darling and a machine-data intelligence software company that has fallen sharply from favor over the past few months, alongside other growth stock peers. When the markets are running for the hills, intrepid and opportunistic investors should take a deeper look and see if there's a bargain to be had. David Tran/iStock Editorial via Getty Images
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