HashiCorp: Overvalued and Potential Downside Risks (NASDAQ:HCP)

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HashiCorp (NASDAQ:HCP) is an open source software company that helps companies deploy applications in the cloud. As companies redesign their applications for the hybrid multi-cloud world, HashiCorp has emerged as a dominant player with an early lead. Hashi Corp develops and sells software tools that enable companies to provision infrastructure, secure and connect workloads, and deploy applications across multiple clouds. As organizations begin the transition to hybrid multi-cloud architectures, they can choose from software offerings from a variety of vendors, including VMware (VMW), red hat (IBM),Microsoft (MSFT) and a variety of other open source software offerings from various startups. Given the presence of dominant players and a variety of startups, we expect HashiCorp’s growth to slow much faster than many investors expect. Although the stock is down around 52% from the IPO price, the stock is down compared to…



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