DATA Stock Forecast: Tableau Stock Dominating the Data Visualization Space

DATA Stock Forecast: Tableau Stock Dominating the Data Visualization Space
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Tableau Stock Likely to Continue Gaining

In a world that produces unending volumes of data, businesses and individuals need to make the most of this precious resource in order to make informed decisions and remain competitive.

With the rise of the digital economy, there are a few companies that stand to gain. Tableau Software Inc (NYSE:DATA) is one of them.

Tableau builds software that helps people quickly analyze, visualize, and share data. The company is focused on putting powerful, self-service analytical technology into the hands of people who need to make important decisions.

Businesses are spending tons of money on Big Data in order to detect and analyze information like customer behavior patterns, trends, and preferences.

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An increase in the volume and complexity of data has led to bigger demand for data visualization software, such as that made by Tableau. Data visualization transforms raw data into visual patterns such as graphs, charts, or infographics.

As per Allied Market Research, the global business analytics software market was valued at more than $45.0 billion in 2016 and is likely to reach $86.5 billion in 2023. (Source: “Business Analytics Software Market by Deployment Model,” Allied Market Research, last accessed January 3, 2019.)

The rise in demand by small and medium enterprises for cloud-based business analytics software is one of the factors driving the growth in this market.

With a customer base of over 70,000 accounts, Tableau’s management team believes that the company is well positioned to expand its footprint in the rapidly growing analytics and business intelligence software market.

Tableau provides software that can be used either by single users or by organizations with thousands of users working on queries using large, complex data sets. This is what is driving the demand for Tableau’s products and pushing DATA stock higher.

Tableau’s analytics platform is disrupting the world of business intelligence.  The company makes analyzing data fast and easy even for non-technical people. And Tableau wants to continue making its software even easier to use.

Tableau has been making healthy progress in transitioning to a subscription model as customers increasingly favor that licensing model. The company has also been expanding its online and offline marketing efforts in order to increase its brand awareness.

Tableau posted record revenues in its recent third-quarter report. This was possible due to the strong subscription adoption numbers. Annual recurring revenue from subscriptions was $362.4 million, a year-over-year increase of 160%. (Source: “Tableau Reports Third Quarter 2018 Financial Results,” Tableau Software Inc, November 6, 2018.)

The company’s healthy revenue growth shows the underlying strength of the business. This bodes well for Tableau stock.

Also in the third quarter, the company signed its largest customer ever, a Fortune 500 insurance company that will deploy Tableau’s software to more than 10,000 of its employees.

Tableau’s improving financials have been keeping the DATA stock price flying high. Since I wrote about the stock in Profit Confidential in December, it has gained about 67%.

The following stock chart shows this phenomenal rise.

Tableau Stock NYSE:DATA graph chart

Chart courtesy of StockCharts.com

The increasing demand for data visualization tools could help Tableau stock deliver more double-digit returns to investors in the coming years.

Analyst Take

Data is the “new oil,” and Tableau Software Inc is transforming the way people and businesses use this new fuel in order to solve problems.

The demand for data analytics is expected to continue to grow in the coming years. Tableau is well positioned to gain from this development.

DATA stock investors stand to gain a lot from the rise of the digital economy. Investors might want to consider Tableau stock on any sign of price weakness.