Elastic Q1 Earnings: Stretched To Breaking (Rating Downgrade)

preparing to flick rubber band,hands close-up RunPhoto/DigitalVision via Getty Images Investment Thesis Elastic (NYSE:ESTC) delivered a middle-of-the-road earnings update and the stock got hit hard at negative 25%. What led to the sell-off wasn't so much the fact that Elastic pulled in its revenue guidance by a hair, as much as it was the realization that investors are being asked to pay a large premium on a stock that is delivering mid-teen growth rates. All in all, I strongly believe that there are much b ...