Joe Terranova on DataDog: I'd rather buy the stock if it moved a little bit higher

Can we talk about things that are going down today in terms of growth, growth erects, if you will, Shopify, let’s do it. So that’s on pace for the worst day ever. Twilio is lower now. You sold Twilio in February, but you do have Shopify in the Joe T So they had a surprise loss. Their revenue growth forecast was somewhat downbeat and they expect the almighty margins to decline. Now the CEO was on, you know, the network earlier and was pretty bullish as you probably would expect that one would be. But nonetheless, this stock tells a dramatic story today. What what do I do with this? OK, so this stock is technically and fundamentally broken. The larger question for me is why the Rules moved Shopify into our portfolio and what has happened over the last six months as we’ve got a little bit of a broadening out in the rally, is that you’re seeing a reawakening in a lot of the emerging software and service companies that have the profitability. So I could lump Zoom Video into there at the end of January. Again, the Rules got us long, Zoom Video at 64, we quickly got out at 61. So this, this reawakening has a success rate that I would define as very low Palantir worked got into volunteer at 16, it’s somewhere around 2021 right now. But I don’t know that we’re in the place yet where you could say these emerging software and services name and you could lump into that, you know you could lump into that data dog as well which obviously missed yesterday. Those were the two big blow UPS yesterday or this or this week. And I don’t think we’re in the place right now where you could say those emerging software and services names are going to have a high probability to re establish the type of bullish trend that we witnessed from them in 2021. And I’m not even talking about nonprofitable emerging market software and services names. I’m talking about the ones that are flirting with the talk about high beta software names. I mean look match group, pummel today you mentioned Palantir Data Dog were yesterday’s examples. Data Dog gets upgraded today. So it’s like the street is, you know, still you know backing these up outperformed today at Baird price target goes to 140 from 1:30. But all of that raises the issue on these Now you have to separate the mega caps from from these kinds of names too when you’re discussing lightening up in the growthy, growthy type names without question. And and this is a stock that’s part of the AI Halo, we talked about this in the last several days. The expectations for this company are remarkably high. Would I do anything with the stock here at 1:16? Probably not. I’d actually rather buy the stock if it moved a little bit higher once again and begins to reestablish a lot of that positive momentum. You want to see what type of price deterioration is going to follow after earnings because that’s generally where it’s going to be most intense where you’re not really today. What is up 3%, that’s not a significant bounce at all. Well, it got based yesterday, but well you get an upgrade today, so it’s going to get a little bit down, up 3% after the the dramatic deterioration that we experienced post Monday afternoon that that just incentivizes you to sit back and just wait Karen. Yeah, I think that the market is unforgiving when you’ve you’ve had these right, you’ve had these stocks, they sort of trickle down a little then they disappoint, they go down 20%. Some people come in and buy them and then if you do it again to these same owners, you know that’s it you’re you’re really like no pun intended in the dark house for a long time And it it’s going to take massive efforts and earnings or improvement to to shift that that mode. Well I think and Joe made a great point about profitability. I think that’s always been the barometer on whether you felt comfortable being in some of these higher growth names was their their their path to profitability or the fact that they were already profitable. And that doesn’t it seem to seem to be enough necessarily in terms of keeping investors interested. The stocks have gone, you know, bananas from the bottom. Yeah, right. Just being profitable or having a good earnings report is not necessarily enough. We’re learning the punishment, nor is AI adjacency, right. That’s not enough right now. Well, it was. I mean, maybe it still is in in some respects some of this, Yeah, that that remains to be seen.