The 25-day quiet period on Cloudera Inc. (NYSE: CLDR) is set to expire on May 23, allowing the firm’s IPO underwriters to publish detailed positive reports and recommendations on the company.
Cloudera operates a data management, analytics software, and machine learning platform in the United States, Europe, and Asia.
Underwriters (Allen & Co., J.P. Morgan Securities, Morgan Stanley, BofA Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities, JMP Securities, Raymond James & Associates, and Stifel Nicolaus & Company) have been restricted from publishing research reports on Cloudera since the company’s IPO on 4/27; we predict the strong syndicate will be eager to release positive reports and recommendations once restrictions are lifted.
We also expect this event to lead to a boost in the stock price for Cloudera (according to our research). Investors who purchase shares prior to the 5/23 expiration date could benefit from a full ramp up in price over a multi-day period.
Business Overview
Based in Palo Alto, and founded in 2008, Cloudera’s platform offers an integrated suite of capabilities that includes machine learning, data management, and advanced analytics. The objective of its platform is to break down and make sense of large data. Its open-source platform Hadoop provides a scalable, agile, and cost-effective solution for enterprises and is currently being used by 8 percent of the global 8,000 companies in the cloud.
The company has a strong third-party partner ecosystem with over 2,500 systems integrators, resellers, independent software vendors, and cloud and platform providers, all of which register in the Cloudera Connect partner program giving them access to a variety of resources. Cloudera has a strategic partnership with Intel Corporation (NASDAQ:INTC) to optimize Cloudera software with Intel processors. Due to this partnership, the Cloudera platform achieves a differentiated performance across Intel architecture, and this is expected to continue with future Intel technology.
