What Happened to the Alteryx Stock Price Today?
- Shares of data analytics provider Alteryx (NYSE:AYX) popped after the company reported strong first quarter numbers, with AYX stock rising nearly 10% on the day.
- Despite the pop, AYX stock is still down more than 30% year-to-date.
AYX Earnings: The Fine Print
- Alteryx’s first-quarter numbers beat across the board. Q1 revenues came in ahead of expectations. So did Q1 earnings. Perhaps more importantly, the company’s second-quarter and full-year revenue guides both came in ahead of expectations, too.
- At the core, Alteryx is growing again.
- During the pandemic, Alteryx’s revenue growth ground to a halt. Two years ago, this was a 100%-plus revenue growth company. Last quarter, revenues rose less than 3%.
- But in Q1, revenue growth reaccelerated to 9%. Next quarter, revenue growth is supposed to reaccelerate even further to 17%. The implied guide is that revenue growth rates will remain around 17% in the back-half of 2021, too.
- In other words, Alteryx is shaking off the pandemic and getting back into growth.
- The big picture: Investors are celebrating by buying AYX stock.
Does It Matter?
- AYX stock has been crushed because of concerns that the company’s pandemic-induced growth slowdown would persist even as Covid-19 fades and enterprise spending rebounds.
- That’s not the case. Covid-19 is fading. Enterprise spending is rebound. And Alteryx’s growth rates are rebounding back to where they were before the pandemic.
- Now that Wall Street sees that Alteryx is positioned to reaccelerate growth, investors will likely bid-up depressed AYX stock.
- That’s especially true since Alteryx’s growth trajectory will likely heat up in the coming few months, as enterprise spending rebounds and data analytics platform receive a lot of that increased budget.
- Alteryx is in a great position to outperform in 2021.
AYX Stock Price Forecast
- The consensus price target on AYX stock is $140.
- We think that’s aggressive. Still, though, we believe shares are worth more than $100.
- We expect Alteryx stock to be trading in the triple-digit range very soon.
The tech sector meltdown has created multiple great buying opportunities for long-term investors. AYX stock is one of the best stocks to buy amid this meltdown.
But it’s not the best growth stock to buy on the dip.
Instead, the best growth stock to buy today is a company that reminds me of a young Amazon (NASDAQ:AMZN). Indeed, I think buying this stock today could be like buying AMZN stock back in 1997 — before it soared thousands of percent.
Which stock am I talking about?
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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