Is it Still Worthy to Invest in Elastic (ESTC)?

ClearBridge Investments, an investment management firm, published its “Global Growth Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the ClearBridge Global Growth Strategy outperformed its MSCI ACWI benchmark. The Strategy delivered gains across eight of the nine sectors in which it was invested (out of 11 total), with the information technology (IT) and industrials sectors the primary contributors. The communication services sector was the sole detractor. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments Global Growth Strategy, in its Q4 2021 investor letter, mentioned Elastic N.V. (NYSE:ESTC) and discussed its stance on the firm. Founded in 2012, Elastic N.V. (NYSE:ESTC) is a Mountain View, California-based information technology and data analysis services provider with an $8.4 billion market capitalization, and is currently spearheaded by its CEO, Ashutosh Kulkarni. Elastic N.V. (NYSE:ESTC) delivered a -26.44% return since the beginning of the year, while its 12-month returns are down by -20.95%. The stock closed at $90.54 per share on March 30, 2022.

Here is what ClearBridge Investments Global Growth Strategy has to say about Elastic N.V. (NYSE:ESTC) in its Q4 2021 investor letter:

“Within the growth universe we target, emerging growth stocks – the category with the highest revenue growth rates – significantly underperformed the overall growth categories in 2021 after leading performance in 2020. The pull through effect on digitization, online access across industries and spend to modernize outdated corporate infrastructures accelerated trends in a highly compressed time frame. Much of that trend slackened in 2021 and shares of these companies, while showing good top line growth, saw slowing appreciation from the blistering pace in the prior year. With that moderating growth, multiples decelerated from 2020 highs. Elastic, a developer of software for advanced data search, also experienced share weakness despite a strong beat and raise quarter as we believe investor expectations were even higher.

Investments, Finance

Investments, Finance

Our calculations show that Elastic N.V. (NYSE:ESTC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Elastic N.V. (NYSE:ESTC) was in 60 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 59 funds in the previous quarter. Elastic N.V. (NYSE:ESTC) delivered a -27.44% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Elastic N.V. (NYSE:ESTC) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.