No. of Recommendations: 3
I’m not finished reviewing Cloudera’s recent earnings. Bert just came out with an article reviewing the company’s prospects which will be available on Seeking Alpha shortly. In short, he seems to be quite positive.

Here’s an example of potential multiple expansion as the stock has been beaten down. To date, I’d say necessarily so; however, future opportunities especially after merging with their largest competitor may foretell good things to come.

Valuation is a bit tricky right now as the merger isn’t complete. Suffice it to say, the valuation is low and there are real opportunities for synergy. This isn’t a merger of adjacent companies, but direct competitors.

The real issue to understand here (and I do not yet) is the growth outlook for their solutions. Cloudera just reported 25% growth and is close to non-GAAP profitability. Cloudera and Hortonworks appear to have different and now complimentary focuses. Hiring can slow a bit as the companies are merged.

Unless Hadoop (plus other solutions they offer) are going down the tubes, this is worthwhile of consideration at this point. Investing before the market wakes up to the opportunity, that is.

I’ll come back with more, but thought I’d throw this company out there for consideration (again).

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