What Happened?
Shares of search AI platform provider Elastic (NYSE: ESTC) jumped 6.4% in the afternoon session after investors reacted to positive sentiment from Wall Street analysts. The move appears to be influenced by recent analyst ratings that suggest significant potential upside for the company. Based on the ratings of 29 analysts, Elastic has a consensus price target of $118.38. More specifically, the three most recent ratings from firms including Jefferies, DA Davidson, and Canaccord Genuity imply an average upside of over 35% from the stock's recent price. This bullish consensus from financial analysts is likely bolstering investor confidence in the company's value and future performance.
The shares closed the day at $92.31, up 6.4% from previous close.
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What Is The Market Telling Us
Elastic’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 2.1% on the news that the company highlighted strong growth in its search business, driven by artificial intelligence, during a presentation at Citi's 2025 Global Technology, Media and Telecommunications Conference. During the event, a company executive noted that search has become the fastest-growing part of Elastic's business. This acceleration is attributed to the significant tailwinds from AI. The executive also mentioned that the advancements in their search capabilities are enhancing their competitive standing in the observability and security markets. Investors appear to have reacted positively to the commentary, which suggests that the adoption of AI is directly benefiting the company's core operations and growth trajectory.
Elastic is down 6.9% since the beginning of the year, and at $92.30 per share, it is trading 21.6% below its 52-week high of $117.76 from February 2025. Investors who bought $1,000 worth of Elastic’s shares 5 years ago would now be looking at an investment worth $925.04.
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