Splunk (SPLK) guided to FQ2 revenues of up to $200 million with operating margins of 2-3% along with full-year revenues of $894 million at the mid point versus consensus of $882 million. The guidance was solid and consistent with a history of guiding up on quarterly results. The problem with the stock is that Splunk has a listed market value of $7.25 billion when guiding to revenues below $900 million and razor thin margins. Sure, the company is still in big-time growth mode, but the market valuation is rather stretched at this point to recommend buying the stock despite the good results. Disclosure: No position