Earlier today, Splunk sold a bit more than $2 billion of convertible debt in two tranches, one of which has a maturity in 2023 and the other a maturity in 2025. The debt carries coupon rates of 0.5% and 1.25% respectively and will wind up costing the company interest payments of about $17 million/year. That interest cost is about 8% of the current…
This afternoon, 4 names that I follow carefully reported their results. And a company that is a recent IPO< OPRA, also reported its results and as they had revenues rising by 50%, far above expectations, it is another name on which I want to focus some attention. It is not feasible for me to provide…
PANW-Yesterday, Palo Alto sold $1.5 billion of convertible debentures. The money wasn’t quite free-it certainly cost a bit more than many other recent IT offerings with a coupon rate of 0.75% coupled with a premium of just 27%. As these issues have gone thus far this year, the coupon is higher and the premium is…
Summary Splunk share was recently downgraded by Citi and have seen a noticeable negative share price reaction since that time. I feel the analyst at Citi missed key points in his analysis and has reached very wrong conclusions. Splunk remains the category leader in a variety of IT Operations market segments. Its platform approach has…
The Controversy Splunk reported the results of its fiscal Q1 last Friday. The company beat expectations-as adjusted for the adoption of ASC 606 revenue recognition standard-and raised its outlook for the balance of the year. The shares fell a bit more than 5% and are down a bit more this morning consistent with the decline…
Splunk is a company that while not amongst the names in our high-growth portfolio, deserves consideration in any high growth tech portfolio. As readers know, we limit the names in the portfolio to 11-12, which means we do not get to invest in all of the names that make sense. Splunk happens to fall in…