Please ensure Javascript is enabled for purposes of website accessibility

Why Alteryx Stock Gained 27% in May

By Jeremy Bowman - Jun 1, 2020 at 6:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An analyst upgrade and a broader recovery helped lift the stock.

What happened

Shares of Alteryx (AYX -0.13%) were climbing again last month as the cloud-based data analytics provider continued to rebound from the stock market crash in March. Alteryx shares actually pulled back briefly after the company's first-quarter earnings report, but rallied later in the month with the help of an analyst upgrade and broader gains among SaaS (software-as-a-service) stocks. According to data from S&P Global Market Intelligence, Alteryx finished last month up 27%.

A businessman looks at charts on monitors and on his desk

Image source: Getty Images.

So what

Shares actually fell modestly, slipping 3%, on May 7 after the data analytics specialist turned in its first-quarter report. Alteryx turned in a solid quarter, with revenue jumping 43% to $108.8 million on a dollar-based net expansion rate of 128%, meaning existing customers from a year ago hiked their spending by 28%. Spending on operating expenses like sales and marketing as well as research and development was up substantially. Alteryx posted an adjusted loss of $0.10 per share, down from a profit of $0.04 per share a year ago. Analysts had expected a loss of $0.09 per share. 

Nonetheless, CEO Dean Stoecker noted "an abrupt and significant change in customer buying behavior late in the quarter," and the company called for much slower revenue growth in the second quarter at just 10% to 15% due to the impact of the COVID-19 pandemic, though Alteryx's guidance has historically been conservative.

Later in the month, Alteryx jumped on an analyst upgrade, rising 7% on May 19 after Piper Sandler analyst Brent Bracelin upgraded the stock from neutral to overweight and raised his price target from $90 to $160. Bracelin said that job postings as well as conversations with executives in the subsector led him to believe that adoption for data analytics platforms would accelerate in 2021 and 2022, showing that Alteryx should be able to overcome the current crisis. 

Now what

Cloud stocks have generally surged over the last couple of months, as investors believe the sector is relatively protected from the pandemic. Though Alteryx expects some growth headwinds due to the uncertainty, Stoecker also said on the earnings call that the crisis is also a reminder of how valuable data analytics is, and said that some customers had accelerated deployments with the company.

Alteryx stock is still down about 20% from its all-time high, meaning there's more room for growth if the momentum in SaaS stocks continues. Over the long term, Alteryx's growth opportunity is still very much intact.


Jeremy Bowman owns shares of Alteryx. The Motley Fool owns shares of and recommends Alteryx. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alteryx Stock Quote
$68.48 (-0.13%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.