Big Data's First IPO Is a Big One

Tableau Software launches their IPO on May 17, 2013 at the NYSE.
Paul Toscano | CNBC
Tableau Software launches their IPO on May 17, 2013 at the NYSE.

Tableau Software (DATA) priced its IPO at the NYSE at $31. The initial price talk was $23-$26, then it went up to $28-$30, before pricing at $31.

Wait, there's more: the initial offering of 7.2 million shares was upped to 8.2 million shares. So instead of pricing 7.2 million shares at $24 (the midrange) and raising $172.8 million, they price 8.2 million at $31, raising $254 million.

(Read More: Fed's Williams Gets Markets Moving)

Not bad, eh? A software company? It's simple: Big Data. It's the new magic word, like "cloud computing" was a year ago. Their software allows customers to analyze large data sets using proprietary drag and drop commands. The company's description of what it does is refreshingly free of a lot of the jargon terms that characterize so many company descriptors. They help people see and understand data, to quickly analyze, visualize and share information. Get it? And no leveraged buyout here.


1) A bull gets more bullish. "This has been a better bull market than we expected," said Thomas Lee at JPMorgan getting even more bullish...raising his year end target for the S&P 500 to 1,715 from 1,580. This is 14.7 times his 2014 EPS target of $117. He is particularly bullish on Technology, Healthcare, and Financials.

But why? Investors are deeply suspicious of the rally, and Lee acknowledged this: "To be incrementally constructive on equities, investors ultimately have to expect stronger economic growth-at least compared to consensus expectations."

(Read More: Market Flashes Overbought Signals)

Lee sees clues the economy is improving in the recent outperformance of Semiconductors and Transports, and the steepening of the 10 year vs. 30 year yield curve: "These historically have been reliable market indicators of improving growth," he said.

He also believes market gains will help with an acceleration in consumer spending.

(Read More: Bucking the Trend: Airline Stocks Soar)

What could go wrong? The greatest risk is that the market loses confidence in the Fed, which he readily acknowledged.

2) China gained 1.4 percent overnight on speculation that China's leadership was preparing economic reform measures that would be unveiled later in the year, rather than new stimulus measures.

3) Dollar stronger again as European debt yields continue dropping like a rock...German 10-year yields are at 1.3 percent (!), Italian at 3.92 percent.

By CNBC's Bob Pisani

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.