Who Are Tableau's Rivals? Several of Tableau's biggest rivals including Qlik, Tibco, Birst, and Sisense, are privately held. So, there is no publicly traded stock for you to buy. However, these three tech giants also compete with Tableau and have the resources to keep up with the explosive growth of big data. Microsoft (NSDQ: MSFT) Microsoft is the inventor of the Office suite of business software products. It only makes sense that Microsoft would extend its reach into business intelligence by offering Microsoft Power BI. Combined with its hybrid cloud business, Microsoft can seamlessly collect and store data for its customers to analyze. Microsoft Power BI is free (up to specified data limits) and web-based, so just about anyone in the world can use it. Of course, the idea is that many of these small companies will quickly grow and upgrade to paid versions of the product. International Business Machines (NYSE: IBM) After purchasing Red Hat last year for $34 billion, IBM has gone all-in on cloud computing. Most of that data will be available for IBM's "Watson Discovery" artificial intelligence technology to examine and organize for its customers. For example, IBM's Cognos division offers "Smart Meter" products that collect and organize energy usage data. Utility companies use it to optimize peak demand and supply to minimize outages. One utility was able to reduce overall demand for power, and its customers' monthly bills, by 25%. Oracle (NYSE: ORCL) Oracle boasts that its "BI 12c" product is "stunningly visual and easy to use." Those claims may be a subtle jab at Tableau, which is sometimes criticized for being complex and requiring extensive training to learn. To facilitate ease of use, Oracle has added a voice control feature so users can simply ask for the data they would like to see. Instead of using a keyboard or mouse to manipulate data, verbal commands can create charts and other graphics. Will Tableau Stock Go Up in 2019 (Should You Buy?) The argument for owning Tableau stock is based on its incumbent position in a fast-growing sector. The amount of new data to be processed is growing very fast. Tableau's customers would be reluctant to change vendors and risk falling behind the curve. Tableau enjoys a solid reputation and earns high ratings for quality products and excellent service. It has a large community of active users that provide valuable feedback for product enhancements. As long as the company doesn't give its customers a good reason to change vendors, Tableau stock should continue to perform well. Will Tableau Stock Go Down in 2019 (Should You Sell?) The BI market has grown to the point that it is attracting major competitors. Tableau stock has a market value of $10 billion, which is puny compared to MSFT ($820 billion), IBM ($125 billion), and ORCL ($186 billion). Tableau has a "first-mover" advantage in the BI market and has earned strong loyalty from its customers. That will keep the company in a leadership position for years to come. However, Tableau's market share may steadily erode as customers transition to more robust software solutions from deep-pocketed rivals. Overall Tableau Stock Forecast and Prediction for 2019 Tableau Software is a great company with a wonderful product, but its share price has been bid up to unsustainable heights. By any reasonable measure, Tableau stock is overvalued. At a share price of $128, DATA is valued at more than 50 times forward earnings. That's more than three times the multiple for the overall stock market. It is priced at more than nine times sales, which is four times the index average. Tableau stock is "priced for perfection," and we expect it to experience a setback in 2019. As soon as there is evidence of a decline in its sales growth, we believe Tableau stock will start trading at much lower multiples. |
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