About 5 minutes ago, Schwab was showing that the last trade was at $70.18, and volume was over 3 million shares. With most of my stocks (many of them “Saul” stocks) down the last several days with anyone’s guess as to when the decline will end, not sure I want to jump into ESTC at the $70 level.
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I was thinking to add some below $45, but at $70, I will wait. This is too expensive for me. I have a feeling it will come down somewhat after the first earnings. In the meanwhile, I will add to some of our proven beaten down stalwarts since I believe they are currently cheaper than ESTC.
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Can you please list some of those stalwarts that are currently cheaper? Thanks.
https://www.cnbc.com/2018/10/05/elastic-estc-ipo-stock-makes…
Valued at $4.9b at current price.
$160m in TTM revenue.
P/S is…30ish right out of the gate.
So answer to your question is: any stock with P/S under 30.
Granted they are growing rapidly and likely good company. But for me, this was one to get in near $2.5b and enjoy the ride for 2 years.
Looks like about 2 years growth already priced in.
Maybe i get in on a pullback, but wont cry if not.
I do think this IPO, on a bad day in a bad week, is perhaps a sign (as ZS was) that high-growth cloud-based SaaS companies are being valued at a premium by the market.
Dreamer
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