Why consider Elastic shares now? It has been more than a year now since high growth IT shares reached their recent peak. Since that time, valuations have crashed, and growth expectations have moderated…but long term growth estimates really haven’t changed and the cadence of free cash flow improvement has accelerated noticeably. So, there is plenty of…
To say this has been a horrible year for investors in high growth IT space is somewhat akin to the statement made by the Emperor of Japan announcing its defeat and surrender of his country in August 1945 to the effect that the war had developed “not necessarily to our advantage.” This has been the…
Crowdstrike: A less emotional reaction to a “messy” quarter Crowdstrike reported its earnings a little more than a week ago. While the earnings themselves were more than satisfactory, the guidance was judged wanting and the shares plunged 14% on the day after the earnings release. Was the guidance that bad? Objectively, and in context, not really. Does the current…
Cloudflare: When can the company return to high growth momentum? This is an article about the investment merits and demerits of Cloudflare (NET) shares. As an analyst, I look, for the most part, at individual companies. But as an investor, I have to acknowledge that much of the price change or the change in valuation…
Down 75% from so far this year, and by 82% from its high, should investors consider the shares in the current environment? Of course being down 75%-80% in the last few months is far less of a distinction than it used to be. And, I for one, am far less interested in the percentage decline…
If Fed speakers were muzzled, the world of investing would be a happier and healthier place. After a rally mainly induced by hope for a Fed pivot as inflation rates at both the wholesale and retail level declined, Fed speakers continued to insist on an elevated and lengthy period of terminal rates, albeit with some…
How the mighty have fallen This certainly hasn’t been the year in which to own hi-growth/hi value IT shares. For the most part, operational performance hasn’t mattered much; investors have trashed just about all It vendors with what they believe to have been elevated valuations. They have even trashed the shares of IT vendors whose…
Taking a look beyond the headlines of this high growth IT casualty This is an article recommending the purchase of ZoomInfo (ZI) shares-the other Zoom. This article has nothing to do with Zoom Video (ZM). The company’s earnings report of 11/1 was poorly received and the shares imploded by almost 30% the next day and…
A safe haven doesn’t mean that rain can’t fall October was a strong month for most stocks. Even software stocks bounced with the IGV (IGV), the software ETF rising about 7%, while the Wisdom Tree Cloud ETF (WCLD) rose about 3.5%. But while October was strong for the market as a whole, it has been…
New Relic: A pioneer in observability getting back some momentum This is an article recommending the purchase of New Relic (NEWR) shares. I believe, as will be detailed below, that New Relic’s turnaround has enough visibility so that it is reasonable to believe that the company will be able to achieve a CAGR of 20%…