I feel pretty good about calling TIBCO out as the best tech stock for 2010 on days like these.
The reason for today's strong price appreciation is, of course, another stellar earnings report -- 23% year-over-year sales growth with a heavy dose of recurring revenue contracts and 35% higher non-GAAP earnings speak volumes about TIBCO's business trends. Cash flows are even stronger than earnings, and CEO Vivek Ranadive reiterated his view that the TIBCO model of information management has "hit the proverbial tipping point" and is destined for a virtuous cycle of increasing sales going forward.
The chief rival in TIBCO's world is IBM
Those products just can't match TIBCO's "information bus" architecture when it comes to reporting customer data in real time and taking action before it's too late. In the words or Ranadive: "What is the point of knowing that you have lost a customer after the customer has already gone? What is the point of knowing that you have a power outage after the power fails?" TIBCO's solutions give businesses a fighting chance to stay a step ahead of these events.
The TIBCO snowball has just started rolling downhill and will only grow larger and faster from here. Large system integrators including Infosys
Some investors think TIBCO is too expensive at these levels, but I believe the company is finally getting the market respect it so richly deserves. Where do you stand? Voice your opinion in the Fool Poll, then explain why you feel that way in the comments below.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Accenture is a Motley Fool Inside Value pick. The Fool owns shares of International Business Machines and Oracle. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.
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