NEW YORK (TheStreet) -- Shares of Splunk (SPLK - Get Report) are plummeting by 24.21% to $35.69 on heavy trading volume late Friday morning, as cloud software companies' stocks are dropping following disappointing 2016 first quarter guidance from Tableau Software (DATA).
After yesterday's market close, Tableau said it expects a loss of 8 cents to 12 cents per share on revenue of $160 million to $165 million for the 2016 first quarter. The forecast is much lower than expectations for earnings of 6 cents per share on revenue of $179.5 million.
Tableau "is now a tainted growth stock of unbelievable proportions, with the core licensing business slowing from 57% growth to 31%," TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust portfolio, said in a recent Real Money article (free access during TheStreet's Open House).
Additionally, Pacific Crest cut its price target on Splunk to $67 from $82, but maintained its "overweight" rating.
"The combination of eroding macroeconomic conditions, coupled with increasing investor concerns that high-growth technology companies may witness a sharper deceleration in growth rates than current consensus estimates are factoring in, has pressured multiples across the group," the firm said in an analyst note.
About 5.11 million of Splunk's shares were traded by this morning, compared to its average volume of 1.85 million shares per day.
The San Francisco-based company is a provider of software products.
Separately, TheStreet Ratings Team has a "sell" rating with a score of D on the stock.
This is driven by some concerns, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SPLKSPLK data by YCharts