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Application Software Play - BUY Recommendation!

Market Summary:

The major indices are mixed and flat today following a volatile and active morning session on Wall Street, with stocks looking for direction following yesterday's broad-based selloff. Fed Chair Jerome Powell delivered a hawkish speech in Jackson Hole, reiterating that inflation remains too high and that the Central Bank is ready to raise its benchmark interest rate further in the coming months. Treasury yields spiked higher following Mr. Powell’s speech, while stocks turned lower across the board, despite the fact that the tech sector and the Nasdaq opened in the green.

Application Software Play - BUY Recommendation!
Application Software Play - BUY Recommendation!

Stock Pick Summary:

It operates an observability and security platform for cloud applications in North America and internationally. The company’s products include infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, network monitoring, incident management, observability pipelines, cloud cost management, universal service monitoring, cloud security management, application security management. cloud SIEM, sensitive data scanner, and CI Visibility.

The company continues to offer the broadest range of solutions on a well integrated platform in the observability space, and this approach resonates with large users. The company has introduced a number of generative AI products that should enhance its CAGR for years down the lane. In addition, it operates in a huge total addressable market. According to a report published by Fortune Business Insights, the projected CAGR of 24.1% during the forecast period indicates that the cloud monitoring market is expected to reach $9.96 billion by 2030. The company reported strong Q2 bookings that were actually at record levels for the period, and actual revenue growth remains greater than competitors. Despite the lower revenue growth forecast, the business model, profitability, and potential in the AI space make its shares attractive for long-term investors!

Being a growth stock, it is high risk play in the current market environment but we want to look few years ahead and build our position in it.

Risk Meter:

Allocation Guidelines:

  • We don't recommend over investing in any stock. Consider starting with a small amount, say 2-3% of your portfolio's overall value, and add a little at a time.

  • You could invest as low as $200-$500 on a pick, and even buy just 1 or 2 shares, if you are new to investing, low on cash or just prefer going slow.

  • For best results, have an intention to hold your position for at least 2 - 3 years in general. However, you can always lock profits sooner if you prefer as every investor has a unique portfolio and different goals.

  • Consider investing in our multiple stock picks (the more the better).

  • The most successful members look to mirror our portfolio as much as possible.

  • Besides the new stock pick, you may also consider diversifying amongst some of the earlier picks from our market crushing portfolio.

  • Be patient and don't allow daily market swings to unnerve you. Remember, we have a pristine track record over last 10 years, so Buzz with confidence and patience.

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