Dynatrace (DT) Buy $46-$47 – Observability and Application Process Monitoring, Long Term Investment
Observability and application process monitoring straddle both data operations and security in large companies – the idea is to proactively diagnose software and platform issues, get different data silos to talk to each other, prevent security breaches, and fix them in real-time. This is a huge and growing market.
Best-in-class leader in application process monitoring and observability, beating the likes of DataDog, Microsoft, AWS, and Splunk.
Dynatrace’s average customer pays 380K a year, they only target the high end of the market and have strong retention.
Product Strength – Dynatrace’s Full-Stack Monitoring & Analysis integrated service is a major competitive advantage.
The stock is currently 25% below its 52-week high and is a solid investment opportunity with years of secular growth ahead.
The biggest weakness is that they will not grow as fast as the others because they’re only targeting the high-end – revenue growth in the mid-twenties. There was a time when the closest competitor DataDog was growing by 50%.
Here is the full article on Seeking Alpha.
https://seekingalpha.com/article/4684322-why-dynatrace-is-an-excellent-long-term-buy