Long Cloudera [CLDR] – “Cloud Dare Yah”

Machine learning for the cloud.  This company is all about tomorrow, or maybe the day after tomorrow since its product solutions is exactly what will be in demand once our working economy shifts from dumb labor to routine robotics.  When will that be?  Maybe a few years down the line, but by then Cloudera will have positioned itself to have its 10,000 hours in and their software will be heavily sought after.  Data and what you do with that data is the life blood of machine hardware application.

For now, the stock hasn’t been treated nicely.  Even after beating on earnings, the stock still sells off.  It has nearly been sliced in half since in Q1 earnings report where it traded north of $20.   It’s still a baby stock, with its IPO priced last year at $15, and its marketcap right around 2 billion.  I expect EPS to go positive in 2019.

Tomorrow is earnings, and will traders finally buy into the cloud vision?  Let’s see.

I’m long CLDR through 2020 $15 calls.  The breakeven price would mean CLDR would need to get back to 18 in a few months.  It’s interesting that not even a month ago it looked like CLDR would hit 15.

 

cldr.bet