Splunk stock gained 6.4% on June 10
Shares of high-growth technology company Splunk (SPLK) gained 6.4% on June 10 to close the day at $118.51. Splunk stock gained on Tableau’s (DATA) acquisition news. Salesforce announced that it would acquire Tableau for $15.3 billion in an all-stock deal. So why did Splunk stock rise in response?
Splunk and Tableau announced a strategic alliance back in 2014 whereby the two companies would look to leverage their expertise in visual analytics and real-time machine data. Splunk’s software platform provides real-time operational intelligence data, while Tableau is a data visualization and analytics platform. The partnership between Splunk and Tableau allows users to leverage and visualize machine data from Splunk Enterprise and gain business insights.
At the time of the partnership, Tableau cofounder Chris Stolte stated, “Splunk leads the market in enabling organizations to collect, index and make searchable machine data from apps, servers, networks, websites and devices in real time. Our integration lets organizations use our visual analytics software on their machine data in Splunk software. Whether it’s to find quick insights or explore machine data, it accelerates new insights for anyone using Tableau and Splunk.”
Splunk stock fell recently
Splunk stock is now up 13.0% year-to-date. The stock experienced weakness recently when it fell close to 21.0% between May 21 and June 6 this year. Investors were concerned about the company’s cash flow metrics as it moved toward a subscription-based revenue model.
However, as we mentioned in an earlier article, Splunk remains a high-growth company and is expected to grow its revenue and earnings at a robust rate going forward.