by Ian Harvey
June 10, 2020
Enterprise software firm Cloudera shares jumped yesterday after word it is exploring a potential sale after receiving takeover interest.
And, Stock Options Made Easy “Mentorship
Program” Members are also well-positioned to benefit; and are already up 330% potential profit based on a CALL
Cloud-based data and analytics specialist Cloudera shares spiked on Tuesday, following a report that the company was fielding takeover offers, including from private equity firms, although no deal has been reached. Trading was briefly halted in the stock after the news was reported.
The company has held discussions with potential buyers including private equity firms this year.
Cloudera shares, which rose as much as 23% on the news, closed June 9 at $12.00, up $1.89 (+18.69%).
Last Wednesday, after the close, Cloudera reported first-quarter results that topped revenue and earnings estimates but issued a lukewarm sales outlook for both the current quarter and the full fiscal year. Cloudera shares fell 13% on Thursday.
For its fiscal year, which ends January 2021, Cloudera guided for revenue of $825 million to $845 million, lower than its original full-year forecast of between $860 million to $880 million. Analysts polled by FactSet were modeling sales of $862.3 million on average.
Cloudera's largest shareholder is activist investor Carl Icahn via his company, the Icahn Group.
The surge Tuesday allowed Cloudera shares to break into positive territory for the year at a 0.6% gain, compared with a 0.5% decline in the S&P 500 index and a 11% gain on the tech-heavy Nasdaq Composite Index.
“Mentorship Program” Members executed a call options trade on Cloudera on Friday, May 01, 2020, at a cost of $1.00; and the sell value of the option hit $4.30 yesterday – a potential profit of 330%.
The recommended “Mentorship Program” options trade - ** Buy CLDR JUN 19 2020 7.5000 CALL at approximately $1.00.
The Recommended Trade…..
“Cloudera Inc (NYSE: CLDR) is an enterprise data cloud firm that completed its merger with big-data peer Hortonworks in January 2019. The firm’s new Cloudera Data Platform made its debut on Microsoft Azure Marketplace last fall, which should provide strong exposure. Then in January of last year, Rob Bearden took over as chief executive after previously co-founding and running Hortonworks.
Cloudera went public at $15 per share in April 2017. Its revenue growth decelerated significantly in fiscal 2019, but its merger with HortonWorks, which closed at the end of fiscal 2019, boosted its revenue growth in 2020.
In addition to HortonWorks, Cloudera acquired smaller companies like Fast Forward Labs, Hyperpilot, and Arcadia Data after its IPO.
Cloudera's software was originally based on Apache Hadoop, a suite of open-source software utilities that unite large computer networks for data storage and analytics tasks. Cloudera still offers free open-source tools via CDH (Cloudera's Distribution Including Hadoop) and Cloudera Express.
Cloudera's big data crunching capabilities and dependence on open-source software often spark comparisons to Red Hat, which was acquired by IBM (NYSE:IBM) last July. IBM also signed a big data and analytics partnership with Cloudera last year.
Amazon's EMR (Elastic MapReduce) is similar to Cloudera, but it isn't deployed on private clouds. Microsoft offers similar tools in Azure, which can be deployed across private, hybrid, and public clouds. But Cloudera also integrates its platforms into Amazon Web Services (AWS) and Azure -- so customers don't need to tether themselves to the two tech giants' ecosystems.”
Earlier in the year, Cloudera appointed Hortonworks co-founder Robert Bearden as chief executive, following a merger with the company in 2019.
Back in August 2019, Cloudera agreed to add two of Carl Icahn's board members after the billionaire investor disclosed a nearly 13% stake in the company.
“In our view, IBM is the most likely strategic buyer, with an outside shot at one of the hyperscale cloud vendors. Private equity is also likely, in our view, given Cloudera’s recent stumbles,” D.A. Davidson & Co. analyst Rishi Jaluria said in a research note.
Barclays analyst Raimo Lenschow said in a research note that “Cloudera going the private route makes sense to us, as it is a relative laggard in terms of top-line growth, when compared to its software peers.”
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