Software company Splunk (NASDAQ:SPLK) boasts an impressive customer base and increased its cloud revenue in its latest quarter. However, is it wise to bet on the stock now, with smart-money interest in it declining? Let’s find out.The world’s first data-to-everything platform provider Splunk Inc .’s (SPLK) offerings include Splunk Platform, Splunk Solutions, and Splunk IT Solutions. The San Francisco-based company’s customers include The Coca-Cola Company (NYSE:KO), Intel Corporation (NASDAQ:INTC), and Zillow Group, Inc. (NASDAQ:ZG), to name a few. SPLK announced in June 2021 that Silver Lake would be making a $1 billion investment in its senior convertible notes to support its continued business transformation. As a result, its shares soared 27.7% in price over the past three months.
However, the stock has lost 28.7% in price over the past year and 23.2% over the past nine months to close yesterday’s trading session at $158.11.
Among investor concerns, an investigation is being undertaken over possible security violations by the company. Also, SPLK’s losses widened significantly in the second quarter, and its non-GAAP operating margin is expected to remain negative in the third quarter. Furthermore, several hedge funds have sold the stock recently. So, SPLK’s near-term prospects look bleak.