CFLT - Confluent: Share Price Rebound Is Overly Optimistic

2024-04-08 14:41:51 ET

Summary

• Confluent's stock is up significantly from the lows of late 2023, but the company's near-term outlook remains cloudy.
• Confluent's revenue growth continues to decelerate, and the company is still struggling to expand its customer base.
• Stream processing and an increased focus on consumption could help to change this, but this will take time.

The last time I wrote about Confluent ( CFLT ) the share price had just crashed on the back of weak third quarter earnings, which called into question the company's ability to attract and retain customers. I suggested that these concerns were overblown and that the stock would likely bounce back, although felt it would take time for the company to rebuild investor confidence. Instead, the stock was up over 50% within around two months....

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