Splunk (SPLK) shares quickly fell Monday afternoon when Miami-based hedge fund manager Zack Buckley shared his criticisms of Splunk at the 8th annual Value Investing Congress.
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Buckley, who runs Buckley Capital, believes Splunk is in a “very tough competition,” having to battle with the likes of established powers HP, Intel, Oracle, and others. Buckley questioned Splunk’s business model and expressed doubts that its “undifferentiated product” could compete in an ever-changing software and data analytics industry.
The harsh review had an immediate negative effect on Splunk’s stock price, and, according to Buckley, these drops are only the beginning. Buckley predicted Splunk stock could fall as low as $6 to $12 a share in the future, far below its current price around $35.
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