Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Technology
Stocks: ESTC, GOOGL, VZ

Why Elastic Stock Could Be the Next Google

By Alex Kagin, Director of Technology Investing Research, Money Morning • @alexkagin • July 30, 2020

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Can you imagine life without search?

Before the Internet you had to go to an encyclopedia, visit a library, or phone a friend and not even be sure if you got the right answer. Nothing was instantaneous.

The ability to give people the exact info they're looking for on command is why Google's parent company Alphabet Inc. (NASDAQ: GOOGL) has turned into a $1 trillion mammoth.

While Google has been a monster success, another company is staking its claim to the future of search.

You see, the idea of having data at your fingertips is much older than the Internet, and it's not stopping there either...

Paul Otlet, a visionary thinker, conceived of a "mechanized searchable storage systems of books and media" in the 1930s. He created a system of index cards stored in custom cabinets and indexed according to the Universal Decimal Classification. He used this system to create The Mundaneum, which eventually contained 100,000 files and millions of images.

In 1945 Vannevar Bush described a hypothetical machine called the Memex, a device that stored information on microfilm and let users search documents through "associative trails." But still, the idea of search was in its infancy.

That is until the World Wide Web was created in 1989. Hundreds of websites were launched with data at your fingertips. But the same problem emerged: how to find the information you needed. That all changed within the first few years of the Internet as we got the first search engines like Yahoo (NYSE: VZ) and WebCrawler.

Today there are roughly 2 billion websites, and it is estimated that Google processes approximately 70,000 search queries every second, or 5.8 billion a day.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.

That's a lot - but it's also not all about Google. Instead of looking up web pages, just imagine everywhere else that data lives and how important it is to find it. Searching your cloud storage folder, looking for that favorite recipe on a website, grabbing the closest Uber or Lyft, or even searching for a good movie on Netflix. On the enterprise side, large corporations need to search through patents, look at engine log data when building cars, and even security logs to protect corporate data.

The search opportunities are endless.

COVID-19 lockdowns inspired a lifestyle change that's kicking a new billion-dollar market into high gear - and this stock is the best way to play it. Get the pick here - it's free...

We live in a time where data is exploding. It is estimated that 90% of the world's data was created in the last two years alone. This means that making sense and using this data has become a huge opportunity.

And one company is making this all possible. It's not Google, either. In fact, it's one of my favorite new tech stocks right now.

The Fast-Moving Tech Stock Taking on Search

Elastic N.V. (NYSE: ESTC) was founded in 2012 as a search company that builds self-managed and SaaS offerings for search, logging, security, and analytics use cases. The company develops the open source Elastic Stack, which includes Elasticsearch, Kibana, Beats, and Logstash.

Elastic search technology is used by eBay Inc. (NASDAQ: EBAY), Wikipedia, Yelp Inc. (NYSE: YELP), Uber Technologies Inc. (NYSE: UBER), Lyft Inc. (NASDAQ: LYFT), Tinder (NASDAQ: MTCH), Netflix Inc. (NASDAQ: NFLX), and thousands of other companies with widespread use cases.

Search has moved beyond Google and simply typing text into a box.

Uber and Lyft use search to match locations and drivers, and Walmart Inc. (NYSE: WMT) uses it for real-time analytics. Just imagine, Walmart sells over 150 bananas a second. With Elastic it can track and analyze billions in sales at once. Bayer AG (OTCMKTS: BAYRY), a multinational pharmaceutical and life sciences company, uses Elastic to run searches on patent data.

The opportunities could go on forever. That's why Elastic has been growing so fast, with 53% revenue growth last quarter. It now has 11,300 subscriptions and over 600 customers with annual contract value of more than $100,000.

Elastic has built itself on a free and open foundation. This has helped it build up a large customer base, which it is using to convert to paying customers. While this can be a challenging strategy, companies like Red Hat, which was acquired by IBM Corp. (NYSE: IBM) for $34 billion, show it is possible. With an in-need product, people will pay.

While Elastic had started with just search, it has expanded into new markets such as observability, where it can provide solutions for enterprises to log, analyze, and observe events. This is just one example of how it can expand its user base.

Even with Elastic guiding for 25% growth for its next full year, significantly lower than its current growth rate, the uncertain macro environment is mostly to blame. There is still significant interest in the platform from developers and large corporations, and this is why I am thinking about this company as a long-term play. Data will continue to grow, and the need for search will become more and more important.

Learn How You Could Become the Next Crypto Millionaire

Bitcoin's critical "expansion phase" is expected to create billions in new wealth - and our Bitcoin Master Class could be your ticket to cashing in.

Get access to profit tips and strategies from one of Bitcoin's earliest backers: how to buy and sell, avoiding fees and commissions... and, best of all, how to trade cryptocurrencies every day for the potential to make huge gains.

Check out our Bitcoin Master Class here...

Follow Money Morning on Facebook and Twitter.

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments


Latest News

June 5, 2023 • By Garrett Baldwin

The (Horrible) Truth About the Vienna OPEC Meeting

June 5, 2023 • By Shah Gilani

earnings
The Best Commodities Stock to Buy Right Now

June 5, 2023 • By Chris Johnson

This 'Rally" is coming to an end - here's why
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

Ā© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz