Splunk Up +40% on Massive Turnaround Event

In Q2 2023, Splunk reported positive earnings per share of 71 cents following multiple quarters of losses. This caused a turnaround...

Cybersecurity provider, Splunk (SPLK), was losing money in 2022. In Q3 2022, they reported a loss of 20 cents per share.

In its most recent quarter, Splunk reported positive earnings per share of 71 cents.

What happened in between? What prompted this turnaround?

In October of 2022, an activist investor took a sizable position in the company with the goal of bringing profitability to the company and returns to shareholders. Activists work to drive up the share price and bring costs down by influencing the executives, the Board of Directors, and other shareholders that changes are needed.

LevelFields AI alerted users to the activist event, noting the strong bullish signal.

Following the activist playbook, Splunk cut 4% of its workforce and began streamlining processes while working to bring costs back in line.

The end result was a blowout Q3 2023 quarter for the company, and the stock soared on these "surprise" results. But this is what's expected from this scenario - over time, a company will be changed and profits will be realized.

Over a 10-month period from the event alert, SPLK gained +40 percent.

Those seeking an easy to play scenario should look to this one but note: note all activists are the same. LevelFields only tracks the ones that move the needle.

DINO Stock Moves


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