Start the conversation
Cloudera Inc. filed paperwork for a public offering on March 31, and it will be the next big IPO hyped by Wall Street because of its $4.1 billion valuation.
However, there's something Money Morning readers need to know before the Cloudera IPO date: There's a profit play through the Cloudera IPO that Wall Street is ignoring.
Wall Street may be ignoring this profit play, but Money Morning readers will be rewarded for having this potential double-digit profit opportunity on their radar.
What Is Cloudera?
I'll get to the best way to play the Cloudera IPO in just a bit.
Right now, I want to make sure our readers are caught up with the most important facts from the Cloudera IPO filing paperwork.
The Most Important Facts to Know Before the Cloudera IPO Date
For its fiscal year ended Jan. 31, 2016, Cloudera generated $166 million in revenue. For its fiscal year ended Jan. 31, 2017, Cloudera generated $261 million in revenue.
That's year-over-year (YoY) revenue growth of 57%.
However, Cloudera is far from profitable. Its net losses were $187.32 million for 2017 and $203.14 million for 2016. While losses narrowed 7% from 2016 to 2017, the company is still losing hundreds of millions of dollars every year.
We also learned from the IPO filing the Cloudera stock symbol. The ticker will be "CLDR," and the company will trade on the New York Stock Exchange (NYSE). On the official IPO date, the software company will trade as Cloudera Inc. (NYSE: CLDR).
While we know the stock ticker, a Cloudera IPO date hasn't been set. But when the company does go public, we recommend Money Morning investors avoid purchasing shares of CLDR.
That's because after the hype dies down, IPO prices are extremely volatile. For example, shares of Snap Inc. (NYSE: SNAP) opened at $24 per share on its March 2 IPO. But roughly two weeks later, shares of SNAP traded at an intraday low of $18.90 on March 17.
For early investors, that was a loss of 21.25%.
We're focused on a safer investment strategy for the Cloudera IPO. And not only is this investment strategy safer, it could provide market-beating gains of 23%. While Wall Street might shrug off these gains, we'll always take safer double-digit profit opportunities over whatever "buzz" Wall Street is selling.
That's because one company you could invest in right now has $902 million worth of Cloudera shares.