- Dynatrace's business continues to be driven by digital transformation that is accelerating due to the pandemic and the adoption of multi-cloud architectures.
- The company reported a solid F2Q21 and guided up 3Q and the full year. Revenue and EPS were both ahead of estimates, and new customer additions also were better.
- New software technologies and multi-cloud architectures are increasing the complexity of IT infrastructure in the enterprise. Managing complexity will continue to drive Dynatrace revenue in the near term.
- For the second consecutive quarter, investors are ambivalent about Dynatrace's performance and the market position. The lukewarm response post-earnings is a good opportunity to own a secular growth story.
- Therefore, investors should continue to stay invested in the name and buy additional shares when opportunities arise. Buying shares opportunistically is a good strategy for volatile markets.
For further details see:
The Pandemic Is Accelerating Digital Transformation And Dynatrace's Business; Solid Quarter And Guidance