What Is the Cloudera Stock Price?

Cloudera Stock Price News: Cloudera Inc. (NYSE: CLDR), the software company being hyped by Wall Street before it goes public on April 28, 2017, plans to price its shares between $12 and $14 per share.

Wall Street is enamored with Cloudera because its founders are considered some of the brightest minds in Silicon Valley. They include:

  • Christophe Bisciglia, formerly of Alphabet Inc. (Nasdaq: GOOGL)
  • Amr Awadallah, formerly of Yahoo! Inc. (Nasdaq: YHOO)
  • Mike Olson, formerly of Oracle Corp. (NYSE: ORCL)
  • Jeff Hammerbacher, formerly of Facebook Inc. (Nasdaq: FB)

Cloudera stock priceWall Street also likes tech companies because they often have the most valuable IPOs.

As you can see in the accompanying chart, the value of U.S. tech IPOs was a combined $4.3 billion in 2015. That makes it the fourth-most valuable industry for IPOs behind healthcare, energy, and finance.

Statistic: Value of IPOs in the United States in 2015, by sector (in billion U.S. dollars) | Statista

Find more statistics at Statista
But before following the herd into buying Cloudera stock because of hype, there's one important detail Money Morning Members need to know...

Cloudera Stock Price News: The Tech Firm Is Still Unprofitable

Cloudera isn't profitable.

For the fiscal year ended on Jan. 31, 2016, the software company recorded a net loss of $203.14 million. That narrowed to $187.32 million by Jan. 31, 2017, but it was still a net loss.

For value investors, owning shares of CLDR won't initially fit their investment strategy. That's because the Cloudera stock price won't trade based on P/E ratios, 52-week trading ranges, or price/earnings-to-growth (PEG) ratios.

Hype alone will determine how well the CLDR stock price performs when it first hits the market. That means the stock could be extremely volatile, and it won't be suitable for value investors.

However, we've found a backdoor investing strategy that could be more profitable over the next year than investing in Cloudera directly. This strategy allows you to own a blue-chip stock that could climb 22% over the next 12 months, and the company pays a dividend of $0.27 per share on top of that.

Trending: Top 10 2017 IPOs to Watch

And because Cloudera is expected to trade this Friday, we had to make sure you knew about this strategy today...

The Best Way to Profit on the Cloudera IPO Date

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Intel Corp. (Nasdaq: INTC) invested $740 million in Cloudera in 2014 and owns 22% of the software company.

According to Fortune, Intel did pay $30.92 per share for CLDR stock in 2014. If Cloudera prices its IPO between $12 and $14 per share, Intel's shares would be reduced by more than half of what it paid.

And while $740 million sounds like a massive investment, it's actually a small risk for the tech giant. Intel's $740 million bet on the software company only represents 0.05% of its $17.1 billion in total cash.

After analyzing Intel's investment, the company has strategically positioned itself to profit no matter what happens during the IPO.

And it's brilliant...

The obvious benefit if the CLDR stock price climbs is the value of Intel's shares increase.

But if the CLDR stock price craters, Intel could buy more shares and end up controlling the company.

In taking control of Cloudera, Intel would own part of a software firm with a list of 140 big-name clients, including:

  • Walt Disney Co. (NYSE: DIS)
  • Cisco Systems Inc. (Nasdaq: CSCO)
  • MasterCard Inc. (NYSE: MA)
  • Bank of America Corp. (NYSE: BAC)

Intel has the resources to grow Cloudera quicker and cut costs if it takes control, which would help Cloudera reach profitability faster. And with a controlling stake, Intel would make most of the profits.

To make sure its shares aren't diluted in the IPO, the tech giant may buy another 10% of CLDR shares to keep a 21% ownership in the company, according to The Wall Street Journal.

But no matter what happens, analysts are bullish on INTC stock over the next 12 months. And it's naturally a safer bet than investing your money in a highly volatile IPO.

One analyst expects INTC stock to climb to $45 per share in the next year. That's a potential profit of 22.38% from today's opening price of $36.77. And remember that on top of that growth, Intel pays a dividend of $0.27 per share, which is a yield of 2.96%.

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