(NYSE: DATA) ($3.2bn)
New CEO’s (Adam Selipsky) Achievements at Amazon Make Him a Good Fit for DATA / Strong Balance Sheet Flexibility, Zero Debt & Cash Comprising ~27% of DATA’s Market Cap / 3-Year Product Road Map Looks Promising / Potential M&A Play Over Longer-Term
In The Edge portfolio, we have companies like Hewlett Packard (HPE) and MetLife (MET), where the CEO’s have been quite effective in bringing changes in the company resulting in significant valuation upside for the investors. HPE and MET has already generated a huge return of 59.4% (vs. SPX return of 8.9%) and 28.8% (vs. SPX return of 10.9%) since its entry into our portfolio on Oct 30, 2015 and Apr 7, 2016, respectively. These companies strengthen our confidence on the management play, which we believe will be the case with DATA.
The Edge sees Tableau Software (DATA) as an undervalued stock with a new CEO (Adam Selipsky) in place, who has a strong track record of growing businesses from scratch (Mr. Selipsky helped AWS grow from a pre-revenue, 10-person startup to a $10bn first-mover in the cloud-computing space).