Why Elastic Stock Climbed 10.3% in November
What happened
Elastic (NYSE: ESTC) stock benefited from market momentum in November and recovered from a sell-off that hit the cloud-software space in October. Shares gained 10.3% last month, according to data from
Cautious outlooks from tech companies including Workday and Cisco and a slew of downgrades for major companies in the enterprise software space prompted the clipping of valuations for high-flying cloud services companies including
So what
There wasn't much in the way of business-specific news behind the software-as-a-service
Now what
Elastic shares have given up some of their gains amid a sell-off for the broader market early in December. The open source enterprise software company's shares are down roughly 4.5% so far in this month's trading.
Elastic is set to report second-quarter earnings after the market closes on Dec. 4. The company is guiding for sales in the quarter to come in between $95 million and $97 million. Hitting the midpoint of that target would mean achieving sales growth of 51% year over year. The company's
For the full-year period, Elastic is guiding for sales between $406 million and $412 million -- representing year-over-year growth of 51% at the midpoint of the target. Management expects adjusted losses per share for the year to be between $1.24 and $1.40.
The company is valued at roughly 14.7 times this year's expected sales.
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