The market had wavered the first two days of the week with an absence of any real market moving data…until the downgrade of US debt by the Fitch rating agency. Economic macros so far are suggesting that declines in employment may be near at hand, while manufacturing activity is bouncing along the bottom. On the…
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…
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%…
Summary Several months ago, New Relic introduced its second iteration of New Relic 1. The offering is designed to compete more effectively with Datadog. In some ways, it is a case of imitation being the sincerest form of flattery. The quarterly results reported by NR in the first quarter of general availability of the new…
Trying to make sense of Datadog’s valuation Making sense of hyper-growth valuations is a fraught undertaking. The problems are manifold in that no one has any real idea as to when the hyper growth phase of a story ends. That would be true even if there were no pandemic, and work-from-home orders. But in this…
In trying to provide a timely service to subscribers, I sometimes go outside of my comfort zone. And so it proved to be when I pointed out a strongly positive recommendation from another analyst at RayJay regarding New Relic, and suggested that it might be a trade into today’s earnings release. Eons ago, when I…
Amazon’s strength; Amazon reported one of it stronger quarters relative to expectations last week. I generally do not comment at any great length about Amazon these days. It probably trails only Apple and Tesla as the most covered company in the tech space and I feel as though I am not likely to be able…
The older I get, the more I think evaluating stories is equivalent, at least in some regards, to evaluating 50 shades of gray. People often ask me about my conviction level with regards to some calls I make. Some calls are closer than others. I had little or no trouble in writing a positive take…
New Relic shares have seemingly become an old relic in the wake of the company’s most recent earnings release. We were fortunate to escape the debacle here, as much because of our desire to recommit capital to Elastic as for any other specific reason. I have gotten requests from several readers to review the quarter…
Earnings season for the companies whose quarter ended 6/30 is winding down now, and it will be a week or two before the results of companies whose quarter ended 7/31 start flowing in any volume. NetApp does report this week, but as it has already preannounced and talked about its view of the market ,…