Autonomy continues to exceed expectations

Couldn’t ignore Autonomy’s results yesterday. It just keeps exceeding expectations and its Q2 results were no exception. But even Mike Lynch is now warning about the future. See Autonomy prepares for smaller deals and ‘harsh conditions’ in today’s FT. Having said that Lynch hasn’t so far seen any downturn in his business and expects smaller deals to make up for a forecast downturn in the larger deals that Autonomy has seemed to announce almost daily in the last year.

Autonomy shares are up 15% this YTD against a falling market. They are now on some pretty heady forward multiples which might start to worry investors.