On its IPO last week, SuccessFactors
SuccessFactors develops Web-based software to help companies manage recruiting, employee learning, compensation, and succession planning. There are more than 1,400 customers and more than 2 million users. Some of the customers include biggies like ConAgra Foods
For the first nine months of this year, SuccessFactors' revenue has surged 110% to $44.1 million. It helps that the company has strong strategic relationships, such as with IBM
Keep in mind that SuccessFactors' key competitors, Kenexa
So while SuccessFactors has a solid product and is growing rapidly, the stock is far from cheap. And the company is in an emerging technology sector, which can be volatile. Just look at the 40% drop in Kenexa's stock price because of its soft Q3 results. In other words, Foolish investors may want to hold off on SuccessFactors for now.
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