In this article, we discuss 5 best big data stocks to buy now. If you want to see more stocks in this selection, check out 12 Best Big Data Stocks To Buy Now.
5. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 53
Elastic N.V. (NYSE:ESTC) is a California-based search company that delivers technology solutions designed to run in public or private clouds in multi-cloud environments. It is a self-managed and software as a service company that specializes in search, logging, security, observability, and data analytics use cases. For 2023, Elastic N.V. (NYSE:ESTC) expects total revenue to be between $1.067 billion and $1.073 billion, representing 24% year-over-year growth at the midpoint. The consensus revenue estimate came in at $1.08 billion. It is one of the best big data stocks to invest in.
On January 10, Barclays analyst Raimo Lenschow reiterated an Overweight rating on Elastic N.V. (NYSE:ESTC) but lowered the firm’s price target on the shares to $62 from $77. Valuation levels are “still interesting” for U.S. software in 2023, but estimates remain “seemingly too high” given the macro headwinds, the analyst told investors in a research note.
According to Insider Monkey’s data, 53 hedge funds were bullish on Elastic N.V. (NYSE:ESTC) at the end of September 2022, compared to 57 funds in the prior quarter. Daniel Patrick Gibson’s Sylebra Capital Management is the leading stakeholder of the company, with 4.65 million shares worth $333.6 million.
Jackson Square Partners made the following comment about Elastic N.V. (NYSE:ESTC) in its Q3 2022 investor letter:
“Case Study: Pivot to Profitability: Driving free cash flow growth at Elastic N.V. (NYSE:ESTC)
Similar to the Wix and NYT examples above, we have been working with a number of companies (Warner Music Group, Upwork, Grocery Outlet, Lyft, Pacific Biosciences, Vimeo, Lending Club, etc.) to drive operations toward an acceleration in free cash flow growth and to clearly articulate this pivot in strategy to the broader investment community — many of whom are skeptical in the face of current GAAP financials showing low or no profitability. This is a nearly uniform dynamic across all of our Disruptor holdings and much of the reason behind the recent strong headwinds in performance, which we believe will be temporary and fleeting as strength becomes more evident in financial statements. Below we outline our thinking on Elastic — a high conviction Disruptor holding in the midst of this FCF transition.
Background: Elastic is an infrastructure software company that develops the Elastic Stack, an open source suite of software that stores, searches, and visualizes huge quantities of data. Elastic has over 18,000 paying customers across every major industry who leverage its software for a variety of use cases. These include search tools for apps and websites like Booking.com (search tools represent 35% of annual contract value, ACV); logging and analysis software for huge volumes of machine generated events across a global IT footprint, such as Telefonica monitoring performance across its global network (logging and analysis represents 40% of ACV); and security tools to detect and investigate suspicious incidents, such as USAA monitoring its internal network and applications for suspicious activity (25% of ACV). Customers primarily choose Elastic for the breadth of its software suite and cost efficiency versus point solutions. Elastic customers realize ROI through higher customer conversion from better search, faster and more reliable IT infrastructure with robust logging and analysis of traffic, and fewer costly security incidents…” (Click here to read the full text)
