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Elastic N.V. (NYSE:ESTC) is one of the  AI Stocks Investors Are Watching. On November 13, Guggenheim reiterated its Buy rating on the stock with a $122.00 price target. The firm is optimistic about the stock based on its expected revenue outperformance, GenAI tailwinds, and margin expansion. According to firm projections, Elastic will exceed consensus expectations for second-quarter total and Cloud revenue, issue third-quarter guidance ahead of market expectations, and also lift its fiscal 2026 guidance b ...

Core Insights - The upcoming earnings report for Elastic (ESTC) is projected to show quarterly earnings of $0.58 per share, reflecting a decline of 1.7% year-over-year, while revenues are expected to reach $418.13 million, indicating a 14.4% increase compared to the previous year [1] Earnings Projections - There has been a significant downward revision of 37.5% in the consensus EPS estimate over the last 30 days, indicating a collective reassessment by analysts of their initial forecasts [2] - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies have shown a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts forecast 'Revenue- Services' to be $26.03 million, representing a 6% increase from the prior-year quarter [5] - The consensus for 'Revenue- Subscription' is $385.76 million, indicating a year-over-year change of 13.2% [5] - 'Revenue- Subscription- Elastic Cloud' is expected to reach $201.75 million, reflecting a 19.5% increase from the year-ago quarter [5] - 'Revenue- Subscription- Other subscription' is projected to be $189.54 million, showing a 10.2% increase from the previous year [6] Stock Performance - Over the past month, Elastic shares have gained 11.9%, outperforming the Zacks S&P 500 composite, which saw a 1.5% change [6] - Based on its Zacks Rank 3 (Hold), Elastic is expected to perform in line with the overall market in the near term [6]

Wall Street has recently been reacting to concerns about inflation and mixed views from bankers about the health of the US economy. The pricey valuations of artificial intelligence stocks have also been adding to investors’ woes, particularly since these names have largely been contributing to the market’s rally.In this regard, Nvidia’s earnings on Wednesday, November 19, are going to be the center of Wall Street’s attention. The AI chipmaker’s quarterly results may just give the boost investors need that a ...

Core Insights - Elastic has been recognized as a Leader in the IDC MarketScape for Worldwide General-Purpose Knowledge Discovery 2025, highlighting its strong position in the market for search and analytics solutions [1][3]. Company Overview - Elastic is identified as the Search AI company, integrating search technology with artificial intelligence to transform data into actionable insights [8]. - The company has a significant user base, with over 50% of Fortune 500 companies utilizing its solutions [8]. Product Strengths - Elasticsearch is noted for its capabilities as a widely deployed open-source document and vector database, providing a powerful search and analytics engine essential for generative AI applications [1][2]. - The platform supports fast semantic and hybrid search, GPU-accelerated inference-as-a-service, and offers integrated observability and access controls [2][3]. Key Differentiators - Elastic's hybrid, semantic, and reranking models ensure AI systems are grounded in relevant and accurate context, a concept the company pioneered [5]. - The introduction of Agent Builder allows developers to create custom AI agents quickly, enhancing the platform's flexibility and usability [4][5]. - The company has achieved over 5.5 billion downloads of Elasticsearch, indicating a robust open-source community and developer engagement [5]. Strategic Vision - Elastic aims to help organizations unlock the full potential of their data by connecting content, context, and creativity through search and generative AI [5]. - The company emphasizes a unified data platform that combines search, observability, and security, helping organizations reduce costs and achieve faster insights [5]. Market Position - The IDC MarketScape assessment utilizes a rigorous scoring methodology to evaluate technology suppliers, providing a comprehensive overview of their competitive fitness [7]. - Elastic's recognition as a Leader reflects its strong capabilities and strategies in the knowledge discovery market [1][3].

Elastic (ESTC) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended October 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 20. O ...

Core Insights - Elastic has announced new capabilities in the Elastic Distribution of OpenTelemetry (EDOT) SDK, aimed at simplifying the management, updating, and deployment of SDKs at scale [1] - The company introduced new features to support OpenTelemetry for the PHP programming language, addressing the needs of developers and observability teams [1] Group 1 - The new capabilities in EDOT SDK are designed to alleviate bottlenecks faced by developers managing thousands of OpenTelemetry SDKs across distributed systems [1] - The enhancements in OpenTelemetry support for PHP are part of Elastic's broader strategy to improve observability and streamline operations for developers [1]

Core Viewpoint - Elastic (ESTC) has consistently surpassed earnings estimates and is well-positioned for future earnings growth, making it a strong candidate for investors [1][5]. Earnings Performance - In the last reported quarter, Elastic achieved earnings of $0.6 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, resulting in a surprise of 42.86% [2]. - In the previous quarter, the company was expected to report earnings of $0.37 per share but delivered $0.47 per share, leading to a surprise of 27.03% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Elastic, with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Elastic is +0.52%, suggesting that analysts are optimistic about its near-term earnings potential [8]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that Elastic has a high probability of beating earnings estimates, with historical data indicating that nearly 70% of stocks with this combination achieve a positive surprise [6][8].

Core Insights - The article discusses the challenges and disappointments in the enterprise software investment space, highlighting the gap between promising technology and actual investment performance [1]. Group 1: Analyst Background - Bert Hochfeld has a strong educational background with a degree in economics from the University of Pennsylvania and an MBA from Harvard [1]. - Hochfeld has extensive experience in the tech industry, having worked for notable companies such as IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software [1]. - He transitioned to a sell-side analyst role in the 1990s and received accolades from the Wall Street Journal for his coverage of the software sector [1]. Group 2: Research and Fund Management - In 2001, Hochfeld established Hochfeld Independent Research Group, providing research services to major institutions like Fidelity and Columbia Asset [1]. - He managed the Hepplewhite Fund, which specialized in technology investments and was rated as the best performing small-cap fund for the five years ending in 2011 by Hedge Fund Research [1]. - Hochfeld has authored over 500 articles on Seeking Alpha, focusing on information technology companies [1]. Group 3: Legal Issues - In 2012, Hochfeld faced legal issues, being convicted of misappropriating funds from the hedge fund he operated [1]. Group 4: Investment Performance - Hochfeld is recognized for his investment acumen, ranking in the top 0.1% of Tip Ranks analysts for his successful selection of information technology stocks [1].

Core Insights - The article discusses the challenges and disappointments in the enterprise software investment space, highlighting the gap between promising technology and actual investment performance [1]. Group 1: Analyst Background - Bert Hochfeld has a strong educational background with a degree in economics from the University of Pennsylvania and an MBA from Harvard [1]. - Hochfeld has extensive experience in the tech industry, having worked for notable companies such as IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software [1]. - He transitioned to a sell-side analyst role in the 1990s and received accolades from the Wall Street Journal for his coverage of the software sector [1]. Group 2: Research and Fund Management - In 2001, Hochfeld established Hochfeld Independent Research Group, providing research services to major institutions like Fidelity and Columbia Asset [1]. - He managed the Hepplewhite Fund, which specialized in technology investments and was rated as the best performing small-cap fund for the five years ending in 2011 by Hedge Fund Research [1]. - Hochfeld has published over 500 articles on Seeking Alpha, focusing on information technology companies [1]. Group 3: Legal Issues - In 2012, Hochfeld faced legal issues, being convicted of misappropriating funds from the hedge fund he operated [1]. Group 4: Investment Performance - Hochfeld is recognized for his investment acumen, ranking in the top 0.1% of Tip Ranks analysts for his successful selection of information technology stocks [1].