During the momentum stock sell-off in March, the big-data and analytics industry was among the hardest hit. In the last week we’ve seen some recovery among momentum stocks, but for the fastest growing big-data names, such as Tableau (NYSE: DATA ) in the data-visualization space, stock gains are few and far in between. For investors trying to find long-term positions in big data following such enormous stock losses, is now the time to buy? Or, are cheaper alternatives like Qlik Technologies (NASDAQ: QLIK ) and Tibco Software (NASDAQ: TIBX ) a better opportunity?
Why such losses?
In big data, Tableau is one of the more popular and faster-growing companies. The problem is that Tableau is priced for the future, and not on today’s fundamentals. With premium pricing multiples, Tableau has seen more than a third of its valuation wiped out since March, raising the question if long-term value exists.
On the flip side, we have Qlik and Tibco, both of which have seen losses since March, but not near to the same degree. These two companies are growing at a much slower rate and are priced far more attractively relative to current fundamentals.