ESTC - Elastic: Expectations And Competition Intensify Before Earnings
2024-02-23 16:33:02 ET
Summary
- Elastic N.V. has experienced a 50% surge in its stock price since my previous article published before the FQ2 report. Previously, I assigned the stock a Buy rating.
- The company's high current valuation relative to its growth and other software peers, along with increased competition, suggest caution for investors. I am downgrading ESTC to Hold for now.
- Key areas to watch in Elastic's upcoming earnings are quite simple: revenue growth expectations for the next quarters, EPS expansion rates, and market conditions.
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Elastic: Expectations And Competition Intensify Before Earnings