Back in March 2012 Splunk I reported that Splunk had listed and made huge gains in its share price. At the time the shares hit a high of $35.48, valuing the company at over $3 billion, better than a lot of the traditional security vendors of the time.
I have to be honest, I didn’t think they were worth that kind of money, their revenue was not that great and they were struggling to hit the right note in the Security log management market, which was the major driver back then. Well what the hell do I know? Apparently nothing, the current price, stands at over $62 bucks, making their market valuation over $7.5 Billion (thats Billion, with a “B”) dollars.
That’s more then Trend Micro, at just over $5 Billion and halfway towards Symantec’s $16 Billion market capitalization. The same Symantec that has loads and loads of different security offerings, not just a single product like our boys over at Splunk. Of course Splunk is not the only hot security vendor, Fireeye, also a relatively new listing to the exchange has a market cap bouncing around the same range, of $6.5 billion, and they only have a couple of products.
Trend Micro has a Billion in the bank, the Splunk boys or the Fireeye boys for that matter, should buy them out to strengthen their security offerings. It would only cost $5-6 Billion in shares, and you get a billion out of the bank account. Sounds like a good deal to me.
I am not sure what Splunk or Fireeye are doing right to justify the high valuations, but keep on doing more of it boys.