1 Super Stock Down 76% You'll Wish You'd Bought on the Dip

Core Insights - Data streaming is essential for enhancing the capabilities of artificial intelligence (AI) applications, enabling real-time data access for improved outputs [2][5][8] - Confluent has developed a leading data streaming platform, positioning itself to capitalize on the growing AI market [2][14] - Confluent's stock has seen a significant decline from its 2021 peak, presenting a potential buying opportunity for investors [3][12] Company Performance - Confluent generated $286.3 million in subscription revenue in Q3 2025, marking a 19% increase year-over-year, surpassing management's forecast [9][10] - The company's net revenue retention rate was 114%, indicating existing customers are spending 14% more compared to the previous year [10] - The number of customers with an annual contract value (ACV) of at least $100,000 increased by 10%, while those with an ACV of at least $1 million grew by 27% [10][11] Growth Outlook - Confluent has raised its 2025 revenue forecast to $1.114 billion, up from the previous guidance of $1.107 billion, reflecting strong business momentum [11] - The growth rate of million-dollar customers accelerated from 24% in Q2 to a higher rate in Q3, highlighting the increasing importance of data streaming for large organizations [11] - Confluent's total addressable market is valued at $100 billion, indicating significant growth potential relative to its current revenue [14] Valuation - Confluent's price-to-sales (P/S) ratio has decreased to 6.8, making it more attractive compared to the unsustainable ratio of around 60 in 2021 [12] - The current valuation is close to the lowest since the company went public, suggesting a favorable entry point for investors [12]