Alteryx (AYX) Fundamental & Technical Analysis


AYX

Chart done on hourly timeframe. Alteryx is a software company that has managed to capture a very small amount of the data analytics market using a subscription-based business model. The company’s revenue flourished in 2019 after the pandemic and continued growing rapidly in 2020-2021; however recent quarterly earnings reflect a dramatic slowdown of revenue growth, which could explain the stocks decline. Something to note right away is despite its revenue growth in 2019-2021, the stock’s highs of $185 were never justified. AYX has never generated enough revenue to make it a reasonable purchase at that level, so this multi-year correction is completely normal. Valuation since those highs has fallen to about 2B, which is a much healthier market cap. AYX is currently operating at a negative free cash flow, and their balance sheet has a near 1:1 ratio, so their revenue is being eaten up (not unusual for a small tech company). On the positive, revenue is still growing year over year, so the trend is moving in the right direction, but investors haven’t seen enough to buy back in. This, for now, is a stock to watch from the sidelines and await further financial developments from them.