Dynatrace and Affirm – The opportunities are substantial I often tell subscribers and others that trying to trade earnings releases is a fool’s errand. I have tried to provide advice to a variety of clients for many years. I hope that I can share some of the experiences that I have had. An institutional sales…
Summary Dynatrace market shares gains are under-appreciated. It’s net new ARR growth last quarter was well above expectations. Its Grail offering has enabled the company to offer users functionality that is unavailable from competitors. The company has recently released security analytics for its observability platform, a boon for developers and deployed DT customers. The company…
Earnings season is taking on a roseate glow. Many companies are reporting upsides, quite a few are raising their forecasts. I mentioned in a recent article that bearishness amongst hedge fund managers in terms of the net short proportion of their portfolios had reached epic levels. Hedge fund managers, in my experience, are notorious for…
The last few days have seen a mini-rally in enterprise software stocks. I could tell readers that I was anticipating that, except for the fact that I have really been anticipating this since March, and most software stocks still have a long way to go before reclaiming those levels. At the most basic level, there…
What to make of the market in these days of tumult. I appreciate that some of the subscribers have offered encouragement and positive words to this analyst. But this hasn’t been an easy period to invest in the high-growth IT space. In fact, it hasn’t been a particularly easy period in which to invest in…
We initiated a position in the shares of Okta last fall at a price of $261. We believed that the merger with AuthO was underappreciated, and that the growth opportunity was substantial. In a way, that played out. But along the way, the shares were hugely rerated along with most other tech names. Then the…
Summary Dynatrace announced its fiscal Q3 results last week. The results were a beat on revenues and EPS and the company raised its guidance. The share price compressed as the result of controversy with regard to its growth of ARR. The growth of ARR, looked at carefully, was strong again, and adjusted properly exceeded 35%.…
Summary Shares of High-Growth software companies have led the market down so far in 2022. The decline in valuations and absolute share prices has been at rates that rival anything in the recent past. This decline has occurred against a background of strong and growing demand in the Information Technology (IT) space. Ironically, software demand…
Several subscribers have asked me to comment about the share price implosion in the IT space this past week and what names can be bought to take advantage of this panic. I do think that this is a panic that presents some opportunities for subscribers with spare cash. The concept of this panicis is that…
Before dealing with the individual names in this post, I just want to repeat my concerns about the mania that seems to be gripping a class of retail investors to find short squeeze targets. As I mentioned to many subscribers, my background is analytical and it is basically analysis that I try to provide to…