Is Elastic Stock a Top Buy After Beating Financial Expectations?
In spite of the company's revenue soaring nearly 170% over the last three years, shares of software company Elastic (NYSE: ESTC) have fallen 9% over that same period. The bear market of 2022 has shone the spotlight on financial flaws with Elastic, and stocks like it, that put up strong sales growth but little to no profitability. Such stocks are out of favor right now.
But the company beat expectations during the first quarter of its 2023 fiscal year (the three months ended July 2022). Is this stock a buy after getting clobbered in the last 12 months?
Elastic's revenue increased 30% year over year to $250 million (or a 34% increase when backing out the effects of a record run-up in the U.S. dollar against foreign currencies). Despite various macroeconomic concerns and exchange rate headwinds, this slightly beat management's outlook that was provided a few months prior.
Source Fool.com
