Last week, Snowflake (SNOW), Okta (OKTA), and Elastic (ESTC) posted third-quarter results. Only Okta fared the best. Does that make the other two stocks to avoid?
Okta posted non-GAAP earnings of zero cents. Revenue grew by 37.2% to $481.04 million. Markets are betting that the loss to break-even results is at an end. It has remaining performance obligations of $1.58 billion, up by 34% from last year. For 2023, it expects total revenue of up to $1.838 billion.
Okta expects to lose around 27 cents a share on an operating loss of up to $41 million in 2023.
Oktas rally likely played out.
Elastic did not post a profit in the third quarter (non-GAAP). Revenue grew by 28.4% to $264.4 million. Furthermore, it lost $49 million on a GAAP basis. Elastic expects revenue will grow by 24% Y/Y to up to $1.073 billion. ESTC valuations do not matter for speculators. The stock is a good trade around a cycle. For example, the stock cycled from a $96 peak in September to around $55 recently.
Wait for ESTC stock selling to ease, then consider speculating on its uptrend from there.
Backed by Warren Buffett Snowflake is in a trading range. Its Q4 guidance is too weak. Consider taking profits in this firm and waiting for prospects to improve.
