|Bid||119.50 x 1100|
|Ask||119.88 x 800|
|Day's Range||119.00 - 122.97|
|52 Week Range||75.17 - 185.75|
|Beta (5Y Monthly)||1.06|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 11, 2021 - Feb 15, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||151.62|
Alteryx (NYSE:AYX) is focused on cloud-based data analytics software. That’s pushing two big buttons for business. Everyone wants to move to cloud-based tools, which are easy to deploy, easy to scale up and remotely accessible. Data analytics is seen as being critical to gaining customer insight and helping businesses rapidly solve problems. That combination, along with its rapidly expanding market share, explains why AYX stock saw booming growth after the company went public in March 2017. Since then, Alteryx shares have increased in value by 662%. Source: rafapress / Shutterstock.com However, about 15 months ago, the rollercoaster ride began for investors. Since August 2019, Alteryx stock has taken investors on a wild ride. Rapid gains to new highs have been quickly followed by steep declines. The latest cycle began on Oct. 9. After closing at $151.97, AYX began to slide. Now in the $118 range, it’s lost 22% in five weeks. Is it about to bottom out and start climbing again? More importantly, will AYX break out of this cycle and go back to being a growth stock — or is the turbulence going to continue?InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Growing Market Data analytics is a high-growth category, as more and more businesses adopt tools like those offered by Alteryx. Technology giants dominate the market for “big data” analytics. However, there is also strong demand for predictive analytic tools among smaller companies and businesses. This is where Alteryx has been making headway. A 2019 report predicted that the market would grow by $1.94 billion between 2019 and 2023. In the third quarter, AYX calculated that it currently owns just under 38% of this market. Alteryx has also increasingly focused on winning business with big companies, a move that offers the opportunity for increased growth — although it brings the company into direct competition with much larger adversaries. Pandemic Speed Bumps Accelerate the Rollercoaster Ride Up until August 2019, AYX stock had shown remarkably steady growth. At the end of that month AYX suddenly dropped. There was no apparent direct cause, other than a general market-punishment of cloud computing stocks. By Feb. 14 of this year, it had not only recovered, but closed at $158 — a new all-time high. 8 Tech Stocks That Could Benefit from a Biden Presidency Then the bottom fell out again as the pandemic and subsequent stock market crash pulled the rug out. By March 16, AYX was below $81. Recovery was quick and AYX went back into growth mode. On July 9, it closed at $181.98, another all-time high. There were hopes that struggling companies would adopt data-analytics solutions like those offered by Alteryx to maximize their operations during a difficult period. Instead, it turned out that the rush was petering out. On Aug. 6, Alteryx delivered its second-quarter earnings report. Revenue and new customers were up even more than expected, but the company warned that the pandemic was taking a toll. Customers were beginning to reduce their spending. As a result, growth was expected to slow in the third quarter and for the full year. The next day, AYX stock tanked. On Oct. 5, the company announced a new CEO as well as a more optimistic Q3 outlook. In the following session, AYX soared, gaining 28%. In its most recent big move, AYX dropped 20% on Nov. 6, the day after reporting Q3 earnings. Which brings us to today. Bottom Line on AYX Stock Until August of last year, it was pretty easy to project where Alteryx stock was going: up. Despite the rollercoaster AYX has been on for the past 15 months, many financial analysts have a positive view of the stock. Those tracked by the Wall Street Journal give it a consensus overweight rating, with an average $149 price target. There has been little change on that from three months ago — when AYX stock was in yet another sudden dip, after dropping 28% in a single session. From my perspective, Alteryx is a reasonably safe long-term pick. The company is in a strong position in a market segment that’s seeing big growth. However, it has a “B” rating in Portfolio Grader because it’s not without risk. IT spending could take a prolonged hit if we fall into a bad recession. And if demand keeps growing, that could lure more competition. 2020 has definitely shown that investors in this stock need to have nerves of steel. If you can resist the temptation to not panic when it heads downhill, AYX stock might be worth considering. On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Alteryx Stock Remains Stuck on Rollercoaster appeared first on InvestorPlace.
2020 has been one heck of a year for growth-stock investors. Many names in this space have seen gains that take years to achieve. Alteryx (NYSE:AYX) was on that list of monster growth stocks. At one point, AYX stock was up 124% from its March low. Source: rafapress / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading Tips However, in an environment where investors aren’t getting many opportunities to buy the dip in growth stocks, Alteryx has given us just that. Now the interesting thing here is investor behavior. Because many investors don’t like to chase stocks up 200% or more, they want a pullback. That is understandable, of course. However, when that pullback eventually comes, many are hesitant to pull the trigger. Why is that? Fear, mostly. But with Alteryx, let’s peel back some of the layers and see what’s going on here. This stock is down about 36% from the highs, and I think that means it’s worth a real look here. A Look at AYX Stock Alteryx came into its August earnings hot, but not red hot. AYX stock was putting in a lower high in early August, unable to retest the July high near $185. 8 Tech Stocks That Could Benefit from a Biden Presidency When it reported earnings, the company beat on Q2 top- and bottom-line expectations, as sales grew more than 17% year-over-year. However, management’s cautious outlook spooked investors. Shares fell 5.4% the day it reported earnings after the close, then continued to drop over the following two days. All in all, it was good for a three-day thumping of 38.8%. Most of that was tied to guidance. For the year, management expected sales of $460 million to $465 million, below estimates of $505 million. For Q3, an outlook of $111 million to $115 million was below estimates of $119 million. Now, here’s the interesting part. When Alteryx announced a business update in early October, management revised its outlook higher. In this instance, management forecasted Q3 revenue of $126 million to $128 million, ahead of the prior consensus Wall Street expected when it originally reported earnings. That effectively translates to a beat-and-beat as it pertains to the Q2 results and the outlook for Q3. Yet, even at the highs from that bounce, AYX stock couldn’t fill the gap from the Q2 gap-down reaction. Now shares are back down to the post-Q2 area. It’s worth pointing out that the company actually beat its revised revenue outlook for Q3, generating revenue of $129.7 million. And its Q4 guidance is on target with estimates (with a range of $146 million to $150 million vs. estimates of $148.4 million). However, there is a mixed bag with Q4. On the one hand, guidance barely missed estimates and, at the midpoint, would represent full-year revenue of about $483 million. That’s notably ahead of its prior full-year outlook mentioned above. The downside, though, is that the current outlook represents a negative quarter of growth in Q4. Breaking Down Alteryx When we look at the price action above, the volatility is warranted. AYX stock is navigating through a difficult period due to the novel coronavirus. While many other tech companies are realizing accelerating growth, big-data companies like Alteryx are struggling to get customers to expand their budgets. I think this is a temporary issue. After all, the economy is doing better than expected in its recovery efforts from Covid-19. Additional lockdown measures are not helping, but again, I think these are short-term headwinds. I’m not sure if AYX stock will surge ahead or hold its current levels. But down about 36% from its highs, and I think we are seeing an opportunity to start accumulating the name. The revolution in big data is not going to stop. The adoption of 5G technology will not stop (and will accelerate the amount of data generated). Unlike the exponential growth in the coronavirus, the exponential growth in data will not stop. Analysts expect revenue to grow almost 20% next year to roughly $575 million. My hope is that big-data budgets come back in a meaningful way. Coupled with a new CEO, estimates for Alteryx could be conservative. Again, I’m not sure what AYX stock will do in the meantime. Maybe this time next year, the stock price will have gone nowhere. But I believe in 12 months, this company will be in a much better position than it is now, and if investors haven’t been rewarded by that point, I don’t think the “prize” will be far off. On the date of publication, Matt McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article held a long position in AYX. Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post The Selloff in Alteryx Stock Is a Gift for Long-Term Growth InvestorsÂ appeared first on InvestorPlace.
Every investor in Alteryx, Inc. (NYSE:AYX) should be aware of the most powerful shareholder groups. Institutions will...