Which is pointless since they had a great earnings report, were cash flow positive for the quarter and raised their guidance. Additionally they mentioned in the call that no sector is more than 20% of their customers so they are diversified if a certain sector really tanks - like tech. They have 180 million in the bank so won't need credit markets any time soon and gradually approaching profitability.
Disclaimer: I have a position in NEWR and added today at the 21 level. This will certainly bounce back in the comings months or years. Will add if the irrationality continues.
It's trading at about 6x revenue right now and even lower when looking at forward revenues.
Their growth is tremendous and are on a path to profitability. I get it - when the market are getting banged around like it is, there are few safe places. I just think the baby is being thrown out with the bath water in a lot cases. I'm using this to average down a bit and hold.
Yeah I see your point, but what I mean is that when so much of the current value of a company is based on future events, fear unfortunately is never irrational.
And for New Relic the expectations are really high, could still turn out to be a great business story (and I also think it will) but not necessarily a good investment because so much of this future success is already embedded in the price.
Disclaimer: I have a position in NEWR and added today at the 21 level. This will certainly bounce back in the comings months or years. Will add if the irrationality continues.