At Its All-Time High, Is This Cloud Stock a Buy?

The cloud monitoring specialist Dynatrace (NYSE: DT) posted better-than-expected fiscal third-quarter earnings results. Yet investors should remain prudent. The company's elevated valuation, with a stock price at its all-time highs, suggests the market expects flawless execution over the long term amid intensifying competition -- a risky proposition.

Over the last several years, Dynatrace has expanded its core application monitoring capabilities to build an integrated and automated platform that leverages artificial intelligence to deliver infrastructure monitoring, business intelligence, application security, and more.

With solid execution and tailwinds from the secular growth of cloud computing, the company sustained strong revenue growth and increasing profitability. During its fiscal third quarter, which ended on Dec. 31, revenue grew 28% year over year (25% at constant currency) to $182.9 million, compared to 25% in the prior-year quarter.

Source Fool.com