rewrite this title Trying to Find Fault With Samsara Stock – Nanalyze

When a stock keeps growing and seems to be full of nothing but good news, that’s precisely when it’s tempting to just ride the bull thesis to Valhalla. That’s not how responsible investors think about a position that’s consistently exhibiting strength. You should always be most critical of the companies you’re most bullish about. Speaking of which, perhaps nobody was more critical of Samara (IOT) than Spruce Point Capital which made a plethora of accusations including difficulty winning large deals, an overly hardware-centric business model, and “opaque and manipulative” financial reporting.

It’s been two years since the short report, and its merits seem to have vanished. As far as large deals, we can see that Samsara is moving in the right direction with an increasing percentage of their revenue coming from larger customers.

The claim that Samsara is a “material hardware business” has been refuted by management who reiterated that subscriptions make up the vast majority of revenues. We noted in last year’s piece that the company folds hardware costs into their total revenue numbers, so this is a moot point. Finally, nothing ever came of the malicious financial reporting claims. After two years, the SEC hasn’t had any issues with Samsara, so we feel comfortable finally putting this short report to bed.

As always, we expect our disr