NetSuite (NYSE: N) is a provider of cloud-based enterprise resource planning systems (ERP). It also offers customer relationship management (CRM) systems and e-commerce systems. Market has clearly favored the stock this year. NetSuite is up 33% year-to-date. Yet, the company is trading at an astronomical 196 forward P/E. Can this be sustained?
With the invention of the cloud, ERP and CRM systems have started a second life. Established companies more »
As a consumer, you are an extremely interesting person for every business. Those businesses want you to be happy with their products and, therefore, buy more from them. As time passes, relationships with customers get more sophisticated. Companies need customer relationship software to stay on top of the game. Other businesses want to profit from this trend and issue customer relationship management software. One of these companies is Salesforce.com more »
Cupps Capital Management is a Chicago-based investment management firm serving institutional investors through separately managed accounts since 2000. Mr. Drew Cupps is President and Chief Investment Officer of the firm, and has built a fund with over $951 million in assets under management.
A top trio
Informatica (NASDAQ: INFA), the world’s leading data integration software vendor, recently announced its Q1 financial results. The company reported revenue of $214.3 million including software revenues of $88 million, up 9% year-over-year. On the earnings front, the company reported GAAP EPS of $0.16 and non-GAAP EPS of $0.31. Informatica’s chairman and CEO Sohaib Abbasi said:
Our first quarter 2013 results highlight the growing customer demand more »
Recently, cloud computing companies have received special interest from the Street as the smart analysts try to separate the true cloud companies from companies accused of “cloud washing.” In this respect, some stocks have received bearish opinions from most of the analysts. Following discussions gives a flavor of why this bearish point of view might not be the right one:
NetSuite (NYSE: N)
Investment Thesis: The long-term market opportunity lies more »
Get Your Own Cloud Man
The familiar Rolling Stones’ classic, “Get Off of My Cloud,” was a hit when it was released in September of 1965; 48 years later, it is still relevant today. In fact it may stage a comeback as a business anthem due to a tsunami that is currently hitting the IT market.
Sometimes an analyst issues a revised outlook or changes his/her rating but does not inform investors of the reasons behind the call. These typically move stocks on the call alone; the price target and outlook. However, some analysts provide detailed reasons behind the call; these are the outlooks that should be noted and used as part of your fundamental research. Therefore, I am taking a look at such outlooks more »
Coal came for some companies, while others were able to receive the gifts they wanted. As we begin the New Year, here is a look back at the winners and losers of the 2012 holiday season.
J.C. Penney (NYSE: JCP)
In the Coldplay song “Fix You,” the line “When you try your best, but you don’t succeed,” represents the holiday season for this company. Since the store does more »
Salesforce Price Jump Reminds us of Cloud Computing Potential
Shares of Salesforce (NYSE: CRM) jumped over 7% today due to better than expected third quarter sales that stemmed from contracts with large business customers. Not only did shares of Salesforce jump in this mild trading day, but so did shares of its four biggest competitors: Microsoft, Oracle, SAP (NYSE: SAP), and Netsuite (NYSE: N). This across-the-board jump suggests that the more »
I think it is important to consider stocks that prominent value investors recently added to their portfolios. I like to follow great stocks that top hedge funds bought in recent quarters and buy/sell them at proper technical entry points. I explained in one of the blog posts in Warren Trades that top value managers have more resources and information for analyzing companies than any individual investor has. Hedge funds more »
The following is a list of three technology stocks which have outperformed the broader markets in the last three months and have recently made new 52 week highs.
% change 3 month
52 Week High
AOL Inc (NYSE: AOL)
NetSuite Inc (NYSE: N)
Equinix Inc (NASDAQ: EQIX)
We believe AOL Inc more »
Enterprise software is typically a staid field. Customers in this industry tend to be sticky: businesses often stay with their incumbent provider due to the high switching costs of retraining staff and IT departments for a new system. This has been especially true while business software required physical installation on local machines.
Cloud-computing is a type of technology that has become increasingly prevalent in businesses everywhere. It allows businesses to use applications without actually installing them, which helps companies reduce operating costs. Recently, a study sponsored by enterprise software giant SAP (NYSE: SAP) showed that cloud-computing could save U.S. businesses as much as $625 billion over five years. Moreover, this study also showed that existing cloud-computing companies such as Salesforce (NYSE: CRMmore »)
Welcome to the final installment of the five part series aimed at demystifying “The Cloud”. To help define The Cloud I have categorized the various Cloud offerings into five major focus areas, with links to the earlier installments in the series;
Part 1: Personal subscription cloud services
Part 2: Personal private storage clouds
Part 3: Private enterprise clouds
Part 4: Enterprise platform clouds
Part 5: Enterprise service clouds (this edition more »
ERP (enterprise resource planning) systems are software platforms designed to help companies streamline information flow across an organization. While most businesses regard them as mission critical, ERPs suffer from a reputation of entailing a long, hairy monster of an implementation process due to the multitude of inputs and diverse operating resources of an individual company. From the vendor’s perspective, however, the upside to this front-loaded investment is that once more »
Every investor wants to be the first on the scene whenever a new company releases a groundbreaking product or even just before a particular service becomes popular. Oftentimes, especially for retail investors, an investment strategy based on predicted foresight into what will be the hottest technology of tomorrow involves considerable risks and lack of readily available information. For example, salesforce.com (NYSE: CRM) was founded in 1999 and went public more »