Why Barracuda Networks, Inc. Plunged on Wednesday
On the heels of this plunge, Barracuda shares are trading at the lowest levels seen in the company's young life as a publicly traded stock -- by a wide margin. Still, the revenue guidance cuts left some of Barracuda's staunchest supporters adjusting their views.
Analyst house Piper Jaffray, for example, slashed its price targets from $40 to $20 and lowered its rating to "neutral." The firm is losing patience with missed revenue targets and lowered growth guidance, noting that Barracuda's security division isn't outperforming the supposedly market-challenged storage segment.
All told, Barracuda remains a rapidly growing business with a greedy eye on the crucial Internet of Things market, and the stock might not deserve the kind of market backlash it has suffered recently. Opportunistic investors might want to reconsider Barracuda at these low prices, even if management has a troubling tendency to overpromise and underdeliver.
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Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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