Personal Finance
AYX

Why Shares of Alteryx Popped Today

AYX Chart

What happened

Shares of analytics-software provider Alteryx (NYSE: AYX) rose about 12.5% on Wednesday. There was no company-specific news. Instead, the stock was driven higher by a broad stock market rally, as the tech-heavy Nasdaq Composite was up about 5.8% at market close.

So what

Shares of Alteryx have been volatile since the stock market sell-off began in October. The stock plummeted, recovered, plummeted again , and now has recovered again, erasing most of its losses.

AYX data by YCharts.

The company's recent performance has been exceptional. Revenue grew by 59% on a year-over-year basis during the third quarter, an acceleration from the first two quarters of the year. The company also nearly broke even on a GAAP basis and quadrupled its non-GAAP earnings per share.

A cloud.

Image source: Getty Images.

Now what

Alteryx is an expensive stock, trading for around 19 times trailing-12-month sales. That lofty valuation could explain the volatility of the past few months. The company can grow into its valuation but will need to keep up its impressive growth rate.

In the long run, growing revenue and profit can drive Alteryx stock higher. Today, a rising tide lifted nearly all boats.

10 stocks we like better than Alteryx

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Alteryx wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of November 14, 2018

Timothy Green has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alteryx. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AYX

Other Topics

Stocks