Like so many other social media and technology related IPOs from 2011 and early 2012, Jive Software (JIVE) quickly became very overpriced as the stock soared to $28. The market had huge expectations that far outweighed anything the company could produce. Even beating or meeting all three earnings reports since going public haven't been enough to keep the stock price at those highs.
The company is a leading global social business software company. Recently, the stock sold off 22% after reporting Q2 numbers that were mostly in line, while revenue guidance was at the low end of expectations. A stock trading at nearly 10x revenue has to increase guidance in order to sustain that valuation.
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