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Domo - AI Stock Analysis

Analysis generated December 3, 2024

Domo, Inc. (NASDAQ: DOMO) is a software company that specializes in business intelligence tools and data visualization. It was founded in 2010 and provides a platform that connects to various data sources, empowering businesses to visualize, analyze, and derive actionable insights from their data. Domo's innovative solutions have managed to attract organizations looking to make data-driven decisions, enhancing operational efficiency and strategic planning.

Fundamental Analysis

Revenue for the last quarter was $79 million. This figure is significant as it demonstrates a 4.24% increase compared to the previous quarter, which indicates a positive sign of growth. However, it's essential to note that compared to the same quarter last year, there was a decrease of 1.21%. While short-term increases are encouraging, this year-over-year decline could be a cause for concern.

Net income for the last quarter stood at $19 million. This is an increase of 25.06% compared to the last quarter, which is a positive indicator of profitability growth. However, similar to revenue, there was a decrease of 21.30% compared to the same quarter last year. The divergence between quarter-over-quarter and year-over-year performance might signal underlying challenges.

EBITDA for the last quarter was $14 million, showing a strong increase of 32.54% compared to the previous quarter. This is a good sign, as EBITDA is a robust indicator of operational performance. Yet, compared to the same quarter last year, EBITDA has decreased by 30.55%, indicating potential operational inefficiencies or higher operational costs that must be addressed.

Technical Analysis

Today's stock price is $9.53. This represents a robust increase of 22.02% compared to one month ago, suggesting a positive short-term trend. However, compared to a year ago, the stock has decreased by 2.85%, which raises long-term concerns.

The trend is bullish, supported by the fact that the current SMA10 is $9.39, higher than the previous SMA10 of $9.39. This indicates a potential upward trend in price movement. The Relative Strength Index (RSI) is 54.5, indicating a neutral condition, neither overbought nor oversold, suggesting no extreme short-term price pressures.

Alternative Data Analysis

Regarding job postings and employee sentiment, Domo has seven open positions, down by 36% in the last couple of months. This could indicate efforts to cut costs or improve profit margins, although it's not a positive signal for a growing company. Additionally, only 42% of employees have a positive outlook, a concerning sign.

On the customer acquisition front, Domo has an estimated 2.1 million visitors to its webpage, up by 11% in the last couple of months, which is a bullish trend that might indicate an increase in customers. The estimate of 2 daily downloads of their mobile apps has remained constant, signaling potential customer traction.

In terms of customer engagement, Domo has 6,800 Instagram followers, with no significant change recently. However, the number of Twitter followers has decreased by 2% to 67,000, indicating a slight decline in interest.

According to AltIndex's AI score—a model that synthesizes fundamental, technical, and alternative data—Domo scores a 53, which is a hold signal.

Conclusion

Based on the data provided, Domo Inc. demonstrates instances of short-term growth but faces some long-term challenges. The increases in quarterly revenue, net income, and EBITDA contradict the yearly declines in the same metrics, suggesting volatility or transitional issues. The stock's recent bullish trend offers a silver lining, yet the mixed employee sentiment and stable alternative data metrics provide a cautious outlook.

Given these considerations, it might be prudent to hold on to Domo's stock. The mixed signals across various aspects of analysis suggest waiting for more concrete signs of either sustained improvement or decline before making further decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.