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MARKETS LIVE BLOG:

STOCKS EXTEND GAINS AS RESULTS SEASON KICKS INTO HIGH GEAR

Tech-focused investors prepare for fresh wave of earnings highlighted by struggling Tesla

Today's Research Reports on Stocks to Watch: Splunk and Dropbox

ACCESSWIRE

NEW YORK, NY / ACCESSWIRE / August 27, 2018 / While one tech stock went higher, another went lower. This was the case with Splunk and Dropbox. Splunk shares soared after the company reported second quarter results. Shares of Dropbox headed into the red as a company lockup expired allowing some insiders and employees to sell shares.

RDI Initiates Coverage on:

Splunk Inc.
https://www.rdinvesting.com/report/?ticker=SPLK

Dropbox, Inc.
https://www.rdinvesting.com/report/?ticker=DBX

Splunk Inc. saw gains of 14.81% at the close on Friday and hit a new high of $126.43 during intra-day trading. Trading volume at around 10.6 million shares was also significantly higher than the average trading volume of almost 1.9 million shares that Splunk has. It was an impressive earnings report that sent the software company's shares flying on Friday. For the second quarter, Splunk reported earnings per share of 8 cents. While this was down from the 11 cents the company reported in the year ago period it was better than the 5 cents that analysts had waited for. Revenues of $388.30 million was also better than the estimate of $377.5 million from analysts. Stifel Nicolaus analyst Brad Reback upped his price target on the stock from $120 to $138 with a reiterated "buy" rating. According to Reback, the results suggest that the company has "successfully navigated through the worst of the financial headwinds associated with its business model transition, and therefore should see further multiple expansion as it drives healthy double-digit top-line growth with improving profitability and cash flow generation." Monness Crespi Hardt's Brian White also raised his target from $145 to $170.

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Access RDI’s Splunk Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=SPLK

Dropbox, Inc. shares were down 4.62% on Friday on a little over 23 million shares traded. While there was no particular news from the company to explain the drop, it was on Friday that a lockup on the stock was expiring. Some employees and insiders at the company had their first chance to sell since the company's initial public offering in March. The stock has been one of the best performing IPOS of 2018 but have struggled since the company's COO Dennis Woodside announced he would be leaving the company. The cloud-data storage company reported second quarter results earlier this month that beat expectations. For the second quarter, Dropbox saw net losses of $4.1 million, or 1 cent a share. The company saw an adjusted profit of $48 million or 11 cents a share. Analysts had been waiting for 6 cents a share. Shares fell after the earnings report despite the beat. JMP Securities analyst Greg McDowell remarked, "Dropbox was up 9% in [Thursday’s] trading, and it’s giving that back in the after market. Certainly losing Dennis Woodside is a part of that. He joined years ago when they were at a $400 million run-rate business, and now they’re a $1.4 billion run-rate business. Certainly a part of it could be a reaction to Dennis leaving.”

Access RDI’s Dropbox, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=DBX

Our Actionable Research on Splunk Inc. (NASDAQ: SPLK) and Dropbox, Inc. (NASDAQ: DBX) can be downloaded free of charge at Research Driven Investing.

Research Driven Investing

We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.

RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.

Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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SOURCE: RDInvesting.com