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Splunk is Yahoo Finance Plus’ investment idea of the day

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Yahoo Finance’s Jared Blikre reports details on Yahoo Finance’s Investment idea of the day.

Video transcript

ALEXIS CHRISTOFOROUS: All right, Jared, want to get to our Yahoo Finance Plus Investment Idea of the Day. We've got a bullish call here on the tech company Splunk. Why are they so optimistic about this company?

JARED BLIKRE: Well, they just announced a major acquisition, actually a major infusion of capital. And I'm going to tell you what Argus Research is writing about this company today. So let's get a one-year chart on Splunk and off to the races here.

So I'll read from the report. They're reaffirming their Buy following a major new investment, Silver Lake. This is a private equity firm. They're going to make $1 billion private investment on June 22. Splunk is a growing data analytics software company. They're working to sign new enterprise customers while also expanding wallet share through product extensions.

And Argus is also saying, the company's results have been hurt by its business model transition. You can see on your screen, it's down about 30% this year. Argus Research's fiscal year non-GAAP loss forecast is $1.40 per share. And the fiscal year '23 EPS forecast is $0.07.

So looking at the chart here, a little bit depressed. If we take a max look, you can see exactly how volatile this stock has been. It was an early leader in the post-COVID, or in the COVID rally here. Cybersecurity was a big thing. We saw all the investments into IT. But nevertheless, having trailed off and given back a lot of those losses, Argus says, all right, time to dabble here, guys.

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