ELASTIC NV, an essential stock for the tech ecosystem

When you hear the name Elastic NV(NYSE: ESTC) it might not ring a bell to anyone whether you are an investor or a techie. Though in my opinion, this company is one of the most important companies in the current software ecosystem. Elastic NV is the creator of Elasticsearch, every software engineer I know and met have used this tool at one point or at least heard of it. Every team I talked to use this tool in some capacity either an open-source free version or enterprise version. Elastic NV uses the adoption strategy for growth.

Why this company is important:

Elasticsearch provides the industry with querying and searching abilities. This search software is used by almost every major or minor tech company including my own project because of how powerful it is and how easy it is to use it. major clients include Microsoft, Walmart, Twilio, Netflix.

Competition:

In my opinion, Elasticsearch is a monopoly right now. I tried but wasn’t able to find any other product with similar features and which can actually replace this software. The migration costs are also pretty high for software like Elastic because it’s more of a foundational product which is included at the start of the product rather than a plug-in plug-out software

Product:

Elastic’s product portfolio is Elasticsearch, Kibana, observability, security, and extensions to all major cloud providers. The ELK stack is part of most of the cloud software you might be using right now.

Growth:

Elasticsearch introduced great new features to their product portfolio like Machine learning stack and End to End cybersecurity. The company’s revenue comes from their enterprise products and support which is pretty consistent and impressive. This company is really active in open-source which provides it with a large contributor base.

The company is spread out in all prospect, from engineering to sales every team is located in AMER, EMEA, and APAC region which I consider a good sign. The company is still investing a lot in R&D and engineering infrastructure. which is a great sign.

I think it’s a must buy stock for a tech portfolio.

Projections:

I believe that this stock can be around 150$ by next year. For the long term, I see huge growth potential and my 3–4 year projections will be between 250–350$.