Curious what your thoughts are on ESTC? Seems like it's showing strength for a growth name
A blast from the past...
It looks like it had three legs of selling on the way down. It made a bottom with the Nasdaq on March 14. It has traded back above its 50sma which is much better than most software stocks. It has shown some strength and trading in a channel now.
My questions would be: Is this company making any money? why would you buy this stock? Can you do better buying something in a stronger industry group? Is this just a trade for a 5%-10% gain?
The software/database group is the 165 of 197 groups. This stock is still 50% off its highs. If you want to speculate on a stock, and buy a super small percentage then go for it. I believe you can do much better buying a stock showing more strength.I would much prefer to buy something that is showing leadership and near a buy point like DVN or TECK. If you have enough commodity stocks, or just do not want to buy them then PAYX ULTA or NVO are stocks near a buy point, and likely to outperform ESTC.
I hate to be a Debbie Downer...but, just calling it as I see it...