Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Big Data Means Big Bucks for This Tech Stock

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Advances in technology have made sharing loads of information both quick and easy. Companies around the globe are using technology to collect and analyze data about their businesses, customers, and competition. This trend in big data is on track to be a $53.4 billion market by 2017, according to Wikibon. And as the amount of data continues to swell, businesses will need more efficient ways to organize and manage that information. That's where TIBCO Software (Nasdaq: TIBX  ) comes into play.   

Product innovation
The tech company reaffirmed its strong position in the big data market yesterday with the release of its new software, ActiveSpaces. As an industry-first technology, Tibco's new software enables users to mine digital, social, and event data sources in real time. With ActiveSpaces, companies of all sizes can tap into information from a variety of streams to gain insight into customer behavior and industry trends.

The new feature should be a huge success for the company considering it works hand-in-hand with Spotfire, Tibco's business intelligence software. Together, these offerings will continue to drive growth for the company. Another huge advantage for Tibco is the fact that its products aren't limited to a single sector; in fact, the company currently licenses its software to global businesses across 10 distinct industries. In other words, Tibco operates in a lot of segments where growth is inevitable.

Fierce competition
Of course, you don't make it to the top without first challenging the gods. In this case, the Almighty is IBM (NYSE: IBM  ) , with Oracle (Nasdaq: ORCL  ) the runner-up. These tech giants compete with Tibco on the infrastructure software front. But because both IBM and Oracle are much larger, they're able to provide a broader range of products than Tibco, and still have those products tie into their infrastructure offerings.  

Where TIBCO excels over the competition is by playing to the future. The company continues to invest heavily in research and development -- spending $143.2 million on R&D last year, up from $124.7 million in 2010. Products like Tibco's social networking platform, cloud middleware, and most recently ActiveSpaces focus on where the market is headed. If the company can stay focused on this strategy, it should continue to gain market share from bigger players like IBM.

The software maker is currently trading near a 52-week high around $32 with a P/E of 48. This could signal that much of the company's growth is already priced into the stock. However, I like Tibco's position within the middleware market and feel that it will be a standout performer in the years ahead. For these reasons, I'm giving the stock an outperform rating on my profile in Motley Fool CAPS. While I'm long on Tibco, it's not the only company cashing in on big data. Click here to find out what other stock is turning big data into big bucks in this free report from The Motley Fool: "The Only Stock You Need to Profit From the NEW Technology Revolution."

Fool contributor Tamara Rutter owns shares of Tibco and IBM. Follow her on Twitter, where she uses the handle @TamaraRutter, for more Foolish insights and investing advice. The Motley Fool owns shares of Oracle. Motley Fool newsletter services have recommended buying shares of TIBCO Software. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1859732, ~/Articles/ArticleHandler.aspx, 10/27/2016 5:12:03 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
TIBX.DL $0.00 Down +0.00 +0.00%
Tibco Software CAPS Rating: *****
IBM $153.35 Up +1.54 +1.01%
IBM CAPS Rating: ****
ORCL $38.22 Down -0.09 -0.23%
Oracle CAPS Rating: ****