Out Fox The $treet

After the initial rally following the signed merger between Cloudera (CLDR) and Hortonworks (HDP) , the stock has collapsed 50% from those $20 highs. The stock hit pennies away from a new low following their IPO over 18 months ago as the merger closed this morning.

Tableau Software beaten down on weak guidance. The biggest problem with the stock was a high valuation that didn't price in the expected revenue slowdown. The valuation represents a bargain for the business analytics sector. In an incredible move, Tableau Software (NYSE: DATA ) is trading down almost 50% based on soft 2016 guidance. My warning for several months now was that the stock needed a valuation rerating before investors became involved in this story. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Even with Splunk (NASDAQ: SPLK ) trading down substantially from the recent market weakness, the stock is still very overvalued. The stock was one of the hottest IPOs in 2012 and recently hit all time highs while trading at ridiculously high multiples. Splunk is a leading provider of software for real-time operational intelligence. The company forecast up to 38% revenue growth for the year, but is that growth enough to justify more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Last week, both Palo Alto Networks ( PANW ) and Splunk ( SPLK ) released earnings for the quarter ending January that saw massive revenue growth. While both stocks had hot IPOs in 2012 and trade at what are generally considered expensive multiples, they had different reactions after their respective earnings reports. Palo Alto is a leading network security provider that competes against the likes of Cisco Systems ( CSCO ) and Juniper Networks ( JNPR ) , while Splunk is a provider of real-time data analysis commonly referred to as "Big Data." Palo Alto is more focused on taking market share, while Splunk is creating a whole new market. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

With the market typically favoring dividend stocks over growth stocks, Splunk Inc. (SPLK) remains a conundrum trading at roughly 12x forward revenue estimates. While the company has huge growth potential, analysts only expect 35% growth next year that wouldn't normally warrant such a high valuation. The company provides a leading software platform for real-time operational intelligence. In essence, the company is leading the "Big Data" revolution by offering software tools for analyzing the incredible amount of data created on a daily basis. Back in the summer, the valuation didn't support the growth rate. After a sell-off in October, does the stock finally offer a good value? Read the full article at Seeking Alpha. Disclosure: Long INVN. Please review the disclaimer page for more details.