Want a High-Growth Monster Stock for the Next Bull Market? Buy Splunk
When Splunk (NASDAQ: SPLK) reported its fiscal fourth-quarter 2023 earnings on March 1, investors were excited that it beat guidance for the year on total revenue, annual recurring revenue (ARR), cloud ARR, operating margin, and free cash flow, yet simultaneously disappointed at its lower-than-expected revenue forecasts for the first quarter of its fiscal 2024. As a result, the stock price barely budged. Its post-earnings closing price was almost the same as its price before the report was released.
Although the company has high long-term growth potential, the short term holds much uncertainty. On the earnings call, Chief Financial Officer Brian Roberts said Splunk expects poor macro environment conditions to persist throughout its fiscal 2024, resulting in a slowdown in new deals and expansions.
Considering that most economists believe there will be a recession in calendar 2023, and the stock has already appreciated by 45% from the 52-week low it touched in October, should you buy Splunk stock now, even when the potential is high that things could get worse for the company before they get better?
Source Fool.com
