ESTC - Elastic rises as Monness Crespi Hardt praises AI-focused product event

2023-07-18 09:19:44 ET

Elastic ( NYSE: ESTC ) shares rose more than 2% in pre-market trading on Tuesday after the company's product meeting left Wall Street analysts with a positive impression, including Monness, Crespi, Hardt.

Analyst Brian White, who has a neutral rating on Elastic ( ESTC ) shares, said the event likely gave Wall Street a "better appreciation" for the company's differentiation in generative AI.

"Given Elastic’s long history in the world of search and the launch of ESRE, the company highlighted four key advantages to its approach to generative AI, including superior relevancy, access to higher-quality, more accurate data, stronger privacy controls (and security), and greater cost effectiveness," White wrote in an investor note.

In addition, White pointed out that Elastic founder Shay Banon highlighted the large number of developers who are familiar with Elasticsearch and its ease of use, as well as the "increased incentive that generative AI will create for customers to put more data in a search engine."

Elasticsearch relevance engine, which was introduced in May, is powered by vector search and transformer models that allow for the power of AI innovation to be brought to proprietary data, according to the company.

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