Why Splunk Shares Fell 9% After Earnings
Artificial intelligence is defined incredibly broadly at the moment. It has evolved from early visions of smart hardware to an ever-growing presence in software services. In our interconnected world, it's possible to use data to analyze almost anything, and Splunk (NASDAQ: SPLK) has developed tools to do this quickly and efficiently -- now serving 91 of the Fortune 100 companies.
Splunk has a history of generating really lumpy operating income (meaning there are swings from big losses in some quarters to profits in others). However, net losses are a consistent theme. It just announced earnings for the first quarter of the 2022 fiscal year, and while it beat analyst expectations on revenue growth, it lost $471 million -- over 54% more than the same quarter last year. That wasn't the only concerning metric in the report, and investors have responded by selling the stock.
Source Fool.com
