ESTC - Why Elastic Stock Skyrocketed to a 52-Week High Today
2023-12-01 13:06:09 ET
Shares of cloud-based enterprise data search company Elastic (NYSE: ESTC) skyrocketed to 52-week highs after the company posted financial results for its fiscal second quarter of 2024. As of 10:50 a.m. ET, Elastic stock was up a stellar 32%.
In Q2, Elastic generated revenue of $311 million, which was up 17% year over year. To be fair, this was ahead of management's revenue guidance of $303 million to $305 million. But the outperformance was small and it may seem surprising to some that Wall Street is celebrating Q2 results with this level of excitement.
Elastic credits generative artificial intelligence (AI) for its upbeat Q2 financial results. And this might explain the market's overwhelmingly positive reaction. Many investors are familiar with generative AI programs like ChatGPT , which is really a different approach to internet search.
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Why Elastic Stock Skyrocketed to a 52-Week High Today