DOMO - Domo: Navigating Tough Waters But Downside Is Likely Priced In (Upgrade)
2024-05-24 17:44:06 ET
Summary
- Domo, Inc., a business intelligence software vendor, has struggled to regain popularity as a public company and has lost billions in market value.
- Shares of Domo have fallen nearly 30% this year, with a recent drop following poor Q1 earnings.
- The company is banking on a consumption-based business model transition to drive a recovery.
- Though the stock is cheap at ~1x forward revenue, too many fundamental uncertainties exist for me to be truly bullish on this name.
Once a tech stock gets dumped in the "penalty box," it's tough to get out. Domo, Inc. ( DOMO ) is a leading example of this. The business intelligence software company was way more popular as a tech unicorn than as a public company. Over the past few years, struggling with competition and weakening demand, the stock has wiped out billions of dollars in market value....
Domo: Navigating Tough Waters, But Downside Is Likely Priced In (Upgrade)