Shares of Alteryx, a data analytics platform that trades as AYX on NYSE, dropped by 10 percent on the afternoon of December 11, 2019 despite lack of any company-specific news released during the week. The drop could not even be attributed to last Wednesday’s investor presentation so what really happened?
Alteryx management is known to have held a previously scheduled presentation on Wednesday at the Raymond James Technology Investors Conference but the stock decline had already started well before the presentation started. Reports by the presentation attendees clearly indicate that there were no negative surprises from the management to cause such a drop in Alteryx shares.
What Spurred the Decline for Alteryx Stock?
It is quite apparent now that Alteryx is actually a victim of a wider pullback in SaaS names and cloud-computing. As a key player in the information technology industry, Alteryx is being dragged down despite having an impressive 84% year to date gain in its stock leading to close of Tuesday, 10th December, trading. Keep in mind Alteryx had a 24% gain in November and was looking forward to impressive 2019 third-quarter results.
This level of volatility is normally expected for popular, rapidly growing tech stocks and Alteryx is no exception. It is therefore important for investors to first pay attention to the overall health of a business before passing any future judgment on the viability of a company’s stock. For instance, Alteryx strives to get the biggest portion possible of the massive $28 billion total addressable market for its flagship product, Alteryx Designer, alone. The company’s growth story has also remained intact all along. Currently, Alteryx has a $6.5 billion market cap. It is therefore safe to assume that such no-news moves as recently seen in Alteryx stock can be potential opportunities for investors to either open or even add to their current positions.
AYX Stock Recommendations
Nov-26-19 Initiated Piper Jaffray Neutral $112
Nov-01-19 Reiterated BofA/Merrill Buy $140 → $112
Oct-07-19 Upgrade Wedbush Neutral → Outperform $123 → $135
Aug-22-19 Initiated Rosenblatt Neutral
Aug-13-19 Initiated Compass Point Buy
Aug-01-19 Reiterated BofA/Merrill Buy $126 → $140
Jul-30-19 Reiterated Needham Buy $120 → $139
Jun-28-19 Initiated Guggenheim Buy
Jun-12-19 Reiterated Needham Buy $108 → $120
Jun-07-19 Initiated Goldman Buy $111
May-02-19 Reiterated BofA/Merrill Buy $90 → $105
Feb-28-19 Reiterated Needham Buy $74 → $90
Feb-28-19 Reiterated BofA/Merrill Buy $72 → $90
Feb-11-19 Downgrade Wedbush Outperform → Neutral
Jan-29-19 Downgrade Raymond James Outperform → Mkt Perform
Dec-07-18 Initiated Wedbush Outperform $72
Nov-09-18 Reiterated BofA/Merrill Buy $54 → $72
Nov-08-18 Reiterated Needham Buy $65 → $74
Aug-09-18 Reiterated Needham Buy $51 → $57
Aug-06-18 Reiterated Needham Buy $43 → $51
Evidence-based financial writer with 9 years of experience specializing in earnings, economic data coverage, and bond markets. I combine fundamentals, technicals, and macro to identify low-risk, asymmetric opportunities.