The Motley Fool Previous Page

1 Big Reason Stay Away From Big Data Stocks -- for Now

Tim Beyers
October 19, 2012

Big data stocks have been big winners recently, few more so than Splunk (Nasdaq: SPLK  ) . The company, which is best known for software that harnesses and then analyzes machine data to extract meaning, value, and ultimately intelligence, has seen its shares rise about 8% over the past three months.

Yet the good times may not last. Demand for big data tools is outpacing the supply of talented scientists capable of using them effectively. Worse, a new McKinsey study predicts that, by 2018, the U.S. could face a shortage of 1.5 million big data specialists.

Even so, there's good reason to like the big data trend. A digital world throws off so much information that harnessing it all can make for an astoundingly complex task. Just look at how much Google (Nasdaq: