Send me real-time posts from this site at my email
Motley Fool

Why Dynatrace Stock Jumped on Wednesday

What happened

Shares of Dynatrace (NYSE: DT) rose sharply higher on Wednesday, climbing as much as 9.9%. As of 11:10 a.m. EST, however, the stock was up about 7%.

The growth stock's gain Wednesday morning follows an analyst's move on Tuesday afternoon to initiate coverage of the cloud software company with a buy rating.

Image source: Getty Images.

So what

Truist analyst Joel Fishbein started Dynatrace stock coverage at a $50 price target on Tuesday. Giving shares a buy rating, the analyst said the company's recent transition to a subscription model enables Dynatrace to deliver strong growth and substantial profitability in the coming years.

Dynatrace, which provides a software intelligence platform for enterprise cloud applications, saw subscription revenue rise 36% year over year in its most recent quarter. Subscription revenue represented $157.7 million of the company's total $168.6 million of revenue during the period.

Now what

Investors will get another update on Dynatrace's business when the company reports results for its third quarter of fiscal 2021. The company is scheduled to release this earnings report before market open on Feb. 3.

10 stocks we like better than Dynatrace Holdings LLC
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Dynatrace Holdings LLC wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of November 20, 2020

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue