Splunk Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:3em;'>SPL</div>
SPLK -- USA Stock  

USD 184.89  3.01  1.60%

It looks like Symantec will continue to recover much faster as its share price surged up 0.56% today to Splunk's 6.4434%. As many rational traders are trying to avoid technology space, it makes sense to examine Splunk Inc a little further and understand how it stands against Symantec and other similar entities. We are going to concentrate on some of the competitive aspects of both Splunk and Symantec.
Published over a month ago
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Should we be purchasing Symantec or Splunk?
By analyzing existing basic indicators between Splunk and Symantec, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Symantec with a short position in Splunk. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Splunk has an asset utilization ratio of 154.21 percent. This signifies that the company is making $1.54 for each dollar of assets. An increasing asset utilization means that Splunk Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Splunk or Red Hat is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Splunk's Liquidity

Splunk financial leverage refers to using borrowed capital as a funding source to finance Splunk Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Splunk financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Splunk's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Splunk, but it might be worth checking our own buy vs. sell analysis

Correlation Between Splunk and Red Hat

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Splunk together with similar or unrelated positions with a negative correlation. For example, you can also add Red Hat to your portfolio. If Red Hat is not perfectly correlated to Splunk it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Splunk for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between SPLK and RHT for more information.


Are you currently holding both Splunk and Red Hat in your portfolio? Please note if you are using this as a pair-trade strategy between Splunk and Red Hat, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Breaking it down a bit more

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Splunk revenue. Based on the latest financial disclosure, Splunk Inc reported 2.37 B of revenue. This is 41.85% lower than that of the Technology sector and significantly higher than that of the Software?Infrastructure industry. The revenue for all United States stocks is 74.88% higher than that of Splunk Inc. As for Symantec we see revenue of 4.77 B, which is much higher than that of the Software?Infrastructure

Splunk2.37 Billion
Symantec4.77 Billion
2.4 B
4.8 B

Another 3 percent surge for Splunk

Recent treynor ratio is at 0.29. As of the 26th of August, Splunk has the Risk Adjusted Performance of 0.1173, semi deviation of 2.56, and Coefficient Of Variation of 1259.4. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Splunk Inc, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Splunk Inc, which can be compared to its competition. Please validate Splunk Inc standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Splunk is priced more or less accurately, providing market reflects its prevalent price of 216.74 per share. Given that Splunk Inc has jensen alpha of 0.0752, we advise you to double-check Splunk Inc's current market performance to make sure the company can sustain itself at a future point.

Our Final Take On Splunk

Although many of the other players within the software?infrastructure industry are still a little expensive, even after the recent corrections, Splunk may offer a potential longer-term growth to traders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Splunk at this time. The Splunk Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Splunk.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Splunk Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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