1 Top Growth Stock You Will Regret Not Buying Right Now Before It Soars
Cloud stock Confluent (CFLT) has lagged behind the market in the past year, with shares up only 25% compared to the Nasdaq-100 Technology Sector index’s 49% jump. However, the company’s recent performance indicates a potential turnaround.
In the first quarter of 2024, Confluent reported a 25% increase in revenue to $217 million, along with a non-GAAP profit of $0.05 per share, beating analysts’ expectations. The company also provided solid guidance for the current quarter, expecting revenue of $229.5 million and earnings of $0.045 per share at the midpoint of its range.
Confluent’s success can be attributed to the growth of its cloud and subscription businesses. Confluent Cloud saw a 45% year-over-year increase in revenue, while subscription revenue rose 29%. The company added new customers and saw existing customers increase their spending.
With a total addressable market estimated to reach $100 billion by 2025, analysts expect Confluent’s revenue growth rate to improve in the coming years. Furthermore, the company’s bottom line could see a 124% annual growth rate over the next five years.
If Confluent can achieve earnings of $2.25 per share by 2028 and trades at a multiple in line with the Nasdaq-100, its stock price could increase significantly. Investors looking for growth opportunities may want to consider investing in Confluent before its potential surge in value.