ESTC

I am sure that subscribers will recognize that the last few days have seen a rather substantial pull-back in high growth tech names. Some losses have been greater than others. None of the valuation contraction has been based on some particular changes in the outlook for growth names, or their overall operational performance. We will…

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After several days of risk-on bias, the market has reversed to some degree, today, Thursday, August 26, 2021. As I write this, the Nasdaq Index has declined by about 0.64%. That is about the same as the change in the S&P. The Cloud and Software indices are performing a bit better and were both down…

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High Growth tech names have depreciated sharply since the start of the sector rotation in mid-February. Most names have lost more than 20% as investors have fled the space-supposedly fearful of rising interest rates brought on by expectations of higher inflation. The flip side of this, is that companies in the space have seen a…

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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…

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Buying the dip

The last few trading sessions have seen a rather significant reversal of investor preferences. Risk-off is ruling investment sentiment and has pulled down many high-growth IT names by as much as 20% in a few days. Losses, as is typical in a panic, have been fairly indiscriminate although the names with the highest EV/S valuation…

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Earnings for the quarter ended in July have been flowing in this past week. July has apparently been a relatively strong month for IT sales. It would seem that many of the themes we have highlighted over the past months have been borne out by the operational performance of many vendors. Before turning to focus…

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Summary Elastic shares are down more than 20% from the company’s post earning peak share price set on February 28th. That quarter was impressive with beats on revenues, earnings and other significant metrics. This company is a stealth competitor in the observability market, one of the hottest spaces in the IT firmament the last year…

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Friday marked a further down leg in the market decline that began a bit more than a week ago. Overall, the decline has reached 11.5% as measured by the S&P average. Again, the issue was the potential spread and impact of the Covid-19 virus. The IGV index has fallen a comparable amount over the same…

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Sometimes you do lots of work and think you understand a stock-or perhaps better said the company whose shares you are evaluating. And then said company reports results and the shares take a tumble and you can’t quite figure out what happened or what are you missing. And that in a few sentences is the…

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Elastic Stretches

Elastic reported results for its latest quarter after the close on Wednesday. The results were well received, and the shares rallied 11%. That still leaves the shares 13$ below the high that was set a few weeks ago. The quarter showed growth in revenues and margins at greater levels than the consensus. The bookings  growth…

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