Big data, analytics, Internet, oh my!
In one sinister night, two of the highest-valued stocks in the land, Tableau Software (DATA) and LinkedIn (LNKD), disappoint and it's almost tailor-made for the moment.
I mean, what more evidence do you need to roll into down-and-out cyclicals than to see faltering themes like analytics, the cloud, the modern want-ads. You name it.
LinkedIn is one of those episodic stocks where the company periodically just plain disappoints and there's a lot of sturm und drang and then everyone "reit buys" -- reiterates their buy recommendations -- because it is a unique property that everyone uses. The problem is that it is highly valued and it has a $25 billion market cap, so it isn't like another company is going to buy it. Oops, make that $20 billion. Tableau, on the other hand, is now a tainted growth stock of unbelievable proportions, with the core licensing business slowing from 57% growth to 31%.
Not only that, but Tableau will cast a wide net on everything. It is involved with every important theme that people love, as a perusal of its website -- "Calling All Data," "Visual Analytics for Everyone, "Introducing Analytics in the Cloud," as three of its Web pages are headlined -- makes clear. You could sell every stock from Splunk (SPLK) to Qlik (QLIK) to Workday (WDAY) and Salesforce (CRM) off this and then wait to find who took Tableau's share or learn of a general slowing of the landscape. I think it is the former, but you know how this game works.
Worse, the unicorns out there are looking at a major "down round" right in their faces tonight after these two downers.
Big data, cloud, analytics -- they are the future. But not tonight, and certainly not tomorrow either.