Here is the list of the Trending stocks of the week insights and analysis
May 10 - May 17 2023
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Asset 1
Sonos, Inc. (NASDAQ: SONO)
Background:
Sonos, Inc. is an American developer and manufacturer of audio products best known for its multi-room audio products.
The company was founded in 2002 by John MacFarlane, Craig Shelburne, Tom Cullen, and Trung Mai. Patrick Spence has been its CEO since 2017.
Summary:
Sonos reported a 24% year-over-year decrease in revenue for the fiscal second quarter ending April 1.
While the quarter went about as management expected, the company reduced its full-year revenue guidance. It now expects revenue to be down between 4% and 7% over fiscal 2022, or 2% to 5% on a currency-neutral basis. This compares to the previous outlook ranging from a 3% decline to a 3% increase over last year.
Spending for discretionary products is challenged right now because of the economy and Sonos' premium products aren't immune.
Sonos still believes it can profitably grow to $2.5 billion in annual revenue. But right now this business is challenged, and it's unclear when things will improve.
Hype Change: 211%
Price Change: -29%
Sentiment: NEGATIVE
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Asset 2
ZScaler, Inc. (NASDAQ: ZS)
Background:
Zscaler accelerates digital transformation so that customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location.
Summary:
Zscaler made a positive pre-announcement, and a Wall Street analyst issued a note suggesting the optimization in cloud software spending might be coming to an end.
Management disclosed it now expects a big beat relative to analyst estimates, with third-quarter revenue projected to be between $415 million and $419 million, much higher than its prior guidance of $396 million to $398 million and consensus expectations of $400.5 million.
In addition, non-GAAP (adjusted) operating income is now projected at $60 million to $64 million, versus prior guidance of $55 million to $56 million.
Chairman and CEO Jay Chaudhry said: "We had a strong finish to the quarter as the high ROI of adopting the Zscaler Zero Trust Exchange platform continues to resonate with customers and prospects in this challenging macro environment. ... Our customer engagements are strong, and our platform continues to expand with innovations that solve our customers' real-time IT challenges."
Although the 4% overall increase might seem unimportant, it is worth noting that the stock went up over 30% over the last 12 days.
Hype Change: 100%
Price Change: 4%
Sentiment: POSITIVE
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Asset 3
Palantir Technologies, Inc. (NYSE: PLTR)
Background:
Palantir Technologies is a public American company that specializes in big data analytics.
Palantir enables intelligence agencies to secure actionable insights from sensitive data and achieve their most difficult operational goals. Palantir was formed in 2004 with the goal of assisting intelligence agencies in making better use of their data in a secure and responsible manner.
Summary:
Palantir recently announced a new business focussed chatbot. In its earnings call, CEO Alex Karp discussed its artificial intelligence platform (AIP), a product he stated: "the demand for of which is nothing I've ever seen in 20 years of being involved in Palantir."
Palantir also announced that sales increased 15% in the selling period that ran through late March. That result beat management's forecast and pushed revenue up to $525 million.
Palantir's positive profitability trend continued in the first quarter of 2023, with a net profit of $19.2 million. This follows a successful previous quarter where the company achieved a quarterly profit of $33.5 million.
Looking forward to the rest of 2023, Palantir bumped its revenue guidance up by $5 million to between $2,185 million and $2,230 million compared to the guidance it gave at the beginning of the year.
While the difference in share price right now is minimal, prices have gone up by over 25% in the past 12 days before coming down only slightly.
Hype Change: 117%
Price Change: 25%
Sentiment: Positive
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Asset 4
Datadog, Inc. (NASDAQ: DDOG)
Background:
Datadog is an observability service for cloud-scale applications, providing monitoring of servers, databases, tools, and services, through a SaaS-based data analytics platform.
Summary:
Last week Datadog made its earnings announcement where they beat estimates for revenue and raised full-year guidance. Datadog also operates at the nexus of data and security with its cloud observability suite.
At the end of the first quarter of 2023, Datadog had 25,500 customers, including 2,910 that were spending at least $100,000 per year.
Datadog delivered stellar Q1 financial results. First, it delivered revenue of $481.7 million, which was a 33% year-over-year jump, and comfortably beat its $470 million forecast. The company would have earned an additional $5 million in revenue if not for a service outage it experienced in March.
As a result, Datadog increased its guidance for the 2023 full year; it now expects to deliver as much as $2.1 billion in revenue, up from its previous estimate of $2.09 billion.
Hype Change: 120%
Price Change: 6%
Sentiment: POSITIVE
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