The massive volumes of information generated and used for decision making in business today fuel the booming business of data analytics and Big Data companies.
XBig Data companies, combined with analytics technology, help businesses achieve valuable insights in many areas. Moreover, this includes in-depth customer research, product development, cost management and competitive analysis. Big Data also provides operational intelligence, enabling companies to investigate, monitor, analyze situations and then react and respond.
The application of data analytics affects organizations across practically every industry and takes an active part in developing strategies for their success.
For retailers, Big Data companies help them to get a better understanding of customers and the most effective ways to keep them coming back. As a result, manufacturers can solve problems faster and make more agile business decisions. In addition, bankers use it to help minimize risk and fraud.
Data analytics and Big Data are complementary terms, hence the also-used phrase Big Data analytics.
Big Data Companies To Buy And Watch
The list of Big Data companies continues to grow. Leaders in the field include MongoDB (MDB), Elastic (ESTC), Workiva (WK) and Splunk (SPLK). Big data companies can specialize in various areas, including data mining and cleaning, data analysis, machine data, visualization and storage.
The Big Data trend has also fueled an expansion of initial public offerings for investors to check out. Recent Big Data IPOs include Alteryx (AYX), Cloudera (CLDR) Talend (TLND) and New Relic (NEWR). Splunk was among the first to come public.
What Is Big Data?
Big Data describes huge volumes of data that flood a business on a daily basis, coming from an ever-growing variety of sources. Further, it typically describes data sets with sizes beyond the ability of traditional data processing software tools to capture, process and curate in a timely fashion.
The data creation and gathering process comes from sources that include wholesale or retail transactions, e-commerce data, shipping, audio and video logs, text messaging, internet search queries, satellite imagery and GPS data, as well as stock-market activity and financial transactions. Data is also flooding in from the Internet of Things.
The vast amounts and various types of information collected enable Big Data companies to approach the market in different ways and specialize in specific areas.
What Is Data Analytics?
Data analytics is the method of extracting and analyzing all manner of data in order to draw conclusions about the information. In addition, it uncovers hidden patterns or unknown correlations within the data, or discovers emerging market trends and customer preferences.
But data analytics is not necessarily applicable just to Big Data. For example, data analytics can apply to most types of processing that analyze data, but as the size of organizational data grows, the term data analytics is evolving to favor Big Data-capable systems.
Moreover, the field of data analytics is growing fast, driven by market demand for systems that tolerate the intense requirements of Big Data.
A Primer On Big Data Stocks
There is substantial opportunity for investing in Big Data companies. Here's a rundown on some of the stocks.
MongoDB
MongoDB provides an open-source database platform for businesses, with a subscription-based software-as-a-service business model.
It reported second-quarter results on Sept. 1 that beat estimates but indicated a coming slowdown.
The company reported an adjusted loss of 23 cents a share, vs. expectations of a 28-cent loss. Revenue of $303.7 million topped estimates of $284.4 million. But third quarter estimates fell below expectations.
The company has yet to show a profit. However, revenue keeps growing at a double-digit pace each quarter.
Splunk
Splunk provides intelligence software designed to help organizations search, correlate, analyze, monitor and report on data in real time. The software is geared to analyze vast amounts of historical information. They specialize on machine data applications.
It reported second-quarter results on Aug. 21 that beat estimates. Revenue climbed 32% to $799 million, beating estimates of $749 million. It reported adjusted earnings of 9 cents a share. Analysts expected a 36-cent loss.
Splunk is undergoing a cloud transition to a software-as-a-service business model as it faces increased competition. In addition, this includes a transition to annual recurring revenue.
Elastic
Incorporated in the Netherlands and based in Mountain View, Calif., Elastic says its search technology finds information and insights from large amounts of data, available for a diverse set of applications and use cases.
The company reported second-quarter results on Aug. 25 that beat Wall Street estimates on its top and bottom lines but presented an earnings forecast below expectations. It reported revenue of $251 million and an adjusted loss of 15 cents a share.
Elastic uses a cloud-based, software-as-a-service business model.
Workiva
Workiva offers a cloud-based and mobile-enabled platform used by companies to collect, analyze and manage business data. For instance, customers use Workiva's software to streamline complex business and reporting processes by connecting teams, documents and data from initial sources to final reports. Its platform enables the collection of data across finance, accounting and risk management for compliance reporting.
It reported second-quarter results on Aug. 9 that beat estimates, buoyed by an increase in large contract customers.. Revenue jumped 25% to $131.5 million. In addition, adjusted earnings of 17 cents a share beat beat estimates by 9 cents.
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