Splunk: Follow The Momentum
The positive reaction to FQ4 results is a sign of turning momentum on a beat down stock.
The strong 2016 guidance along with the lower stock price reduced valuation multiples to more reasonable long-term levels.
Splunk is finally a long-term buy even for those missing the recent bottom.
Hopefully investors learned a lesson by the stock reaction of Splunk (SPLK) after the last two earnings reports. Despite generally strong results for both quarters, the stock had completely opposite moves.
Read the full article on Seeking Alpha.
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