Stephens Initiates Coverage of Domo (DOMO) Stock With An Overweight Rating

Domo, Inc. (NASDAQ:DOMO) is one of the Best Cloud Computing Stocks to Invest in Now. On July 18, Stephens initiated coverage of the company’s stock with an “Overweight” rating and a price target of $19, as reported by The Fly. As per the firm analyst, Domo, Inc. (NASDAQ:DOMO) is the most buyable asset of the covered data infrastructure group. This is because it is independent of hyperscalers, and other DI players require BI functionality in order to compete with hyperscalers. Furthermore, the visibility in the future revenue growth continues to increase dramatically, added the analyst.

Stephens Initiates Coverage of Domo (DOMO) Stock With An Overweight Rating

A view of the company’s cloud-based business intelligence platform in use.

In Q1 2026, Domo, Inc. (NASDAQ:DOMO)’s total revenue came in at $80.1 million, with subscription revenue coming at $71.4 million. Furthermore, the subscription remaining performance obligations (RPO) amounted to $408.2 million as of April 30, 2025, reflecting 24% YoY growth. This was the first time that the company achieved a positive operating margin in a Q1. Domo, Inc. (NASDAQ:DOMO) saw a strong increase in pipeline activity generated by its ecosystem, a dramatic increase in sales efficiency, a significant lengthening of the contracts, and an acceleration in RPO growth. Domo, Inc. (NASDAQ:DOMO) posted a non-GAAP operating margin of positive 1%, reflecting an increase of 10 percentage points YoY.

Domo, Inc. (NASDAQ:DOMO) operates a cloud-based modern AI and data products platform.

While we acknowledge the potential of DOMO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DOMO and that has 100x upside potential, check out our report about this cheapest AI stock.

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