Should You Sell Elastic (ESTC)?

Greenhaven Road Capital, an investment management company, released its fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned -4.3% net in the fourth quarter. The fund’s performance compares favorably on a three- and five-year basis. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Greenhaven Road Capital highlighted stocks like Elastic N.V. (NYSE:ESTC) in its Q4 2022 investor letter. Headquartered in Mountain View, California, Elastic N.V. (NYSE:ESTC) is a technology company. On February 13, 2023, Elastic N.V. (NYSE:ESTC) stock closed at $61.25 per share. One-month return of Elastic N.V. (NYSE:ESTC) was 16.62%, and its shares lost 34.05% of their value over the last 52 weeks. Elastic N.V. (NYSE:ESTC) has a market capitalization of $5.856 billion.

Greenhaven Road Capital made the following comment about Elastic N.V. (NYSE:ESTC) in its Q4 2022 investor letter:

“Elastic N.V. (NYSE:ESTC) – The share price of Elastic ended the year more than 30% below where it ended its first day of trading after its 2018 IPO. During this time period, the topline has grown approximately 5X. What started at a nosebleed valuation has compressed into a company that is very reasonably valued on a relative and absolute basis. During the quarter, the company announced layoffs of 16% of the workforce to accelerate profitability in 2023. This is an outstanding company with a strong balance sheet and excellent prospects, but we have been a seller of the shares and expect it will not be in the top 5 holdings in the next letter as I diversify the “types” of bets in the portfolio.”

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Elastic N.V. (NYSE:ESTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Elastic N.V. (NYSE:ESTC) at the end of the third quarter, which was 57 in the previous quarter.

We discussed Elastic N.V. (NYSE:ESTC) in another article and shared the list of big data stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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