From commerce to culture, software is digitizing every aspect of our lives. The undeniable tailwinds fueling the industry have also tempered losses for SaaS stocks over the past six months
as their 2.8% drawdown was relatively better than the S&P 500’s 5.9% decline.
Shares of search software company Elastic (NYSE:ESTC)
jumped 6.3% in the afternoon session after stocks extended their rebound, led by strong gains in the technology sector, as renewed optimism surrounding U.S.–China trade negotiations lifted market sentiment.
Elastic currently trades at $77 per share and has shown little upside over the past six months, posting a small loss of 3%. However, the stock is beating the S&P 500’s 11% decline during that period.
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the data infrastructure industry, including Teradata (NYSE:TDC) and its peers.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the data infrastructure industry, including Elastic (NYSE:ESTC) and its peers.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Wedbush analyst Daniel Ives highlights AI's growing impact on enterprise spending in 2025. AI now comprises 12% of IT budgets, with many companies increasing investments.
Looking back on data infrastructure stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Confluent (NASDAQ:CFLT) and its peers.
Shares of search software company Elastic (NYSE:ESTC)
jumped 19.3% in the afternoon session after the company reported strong fiscal third-quarter 2025 results that exceeded analysts' billings expectations, leading to a beat on revenue, EPS, and adjusted operating income. Sales grew 17% year-on-year, driven by strong demand for Elastic Cloud, which saw a 26% increase, reflecting continued momentum in cloud adoption and the company's push toward AI-powered search capabilities. That momentum makes sense, especially with businesses increasingly consolidating AI search capabilities on a single platform.
CEO Ash Kulkarni said the company exceeded guidance across all profitability metrics, helped by strong sales execution, continued market demand for its products and innovation.
Search software company Elastic (NYSE:ESTC) reported Q4 CY2024 results beating Wall Street’s revenue expectations, with sales up 16.5% year on year to $382.1 million. Guidance for next quarter’s revenue was better than expected at $380 million at the midpoint, 1.5% above analysts’ estimates. Its non-GAAP profit of $0.63 per share was 34.4% above analysts’ consensus estimates.
The regular session of the US market on Thursday is now over, but let's get a preview of the after-hours session and explore the top gainers and losers driving the post-market movements.
