Why Cloudera Stock Is Cheaper Than It Looks

Given Cloudera (NYSE: CLDR) stock's modest valuation because of management's disappointing fiscal full-year guidance, the market doesn't seem to realize the company's transition to the cloud will materialize by next year, which creates an attractive investment opportunity.

Cloudera provides data analytics software capabilities. And according to the research firm IDC, the amount of worldwide data should grow at a compound annual growth rate (CAGR) of 27% by 2025. That bodes well for Cloudera, but its on-premises offering doesn't address the surge in demand for cloud computing.

Thus, despite fiscal first-quarter results above expectations, year-over-year revenue growth of 12% to $210.5 million remains modest.

Source Fool.com