Why Tableau Software Shares Soared 17%



Tableau Software share price has gained momentum again

In the prior part of this series, we saw Tableau Software’s (DATA) strong performance in fiscal 3Q15. Not only did the company exceed analysts’ expectations, but it also provided an improved outlook for fiscal 4Q15 and full year 2015.

Tableau Software had a strong performance in 3Q15 in terms of revenue and EPS (earnings per share). It also increased its 4Q15 top-line guidance. Tableau Software shares rose almost 22% to reach $102.93 on November 6, 2015.

Tableau Software’s shares have had a rough ride in 2015. Although the shares rose ~51% to reach $128.74 in July 2015, they fell 40% to $76 in late September 2015.

In the past few weeks, Tableau’s share price has rallied more than 30%, as you can see in the graph below.

[marketrealist-chart id=800129]

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Technology players increase focus on business intelligence space

Big technology players such as Microsoft (MSFT), Amazon (AMZN), IBM (IBM), and SAP (SAP) are increasingly eyeing and entering the big data space. Growing uncertainty regarding Tableau Software’s ability to sustain growth in the middle of this competition has impacted Tableau’s share price. The slowdown in China and worries regarding global growth prospects have also played a role in the fall of the company’s share price.

The IMF (International Monetary Fund) recently lowered its forecast of global growth for 2015 to 3.1%, an additional 0.2% below its July 2015 projection. In August 2015, the company launched its operations in China (FXI).


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