Dynatrace Rises on Strong Results and Forecast
Comment of the Day

May 18 2023

Commentary by Eoin Treacy

Dynatrace Rises on Strong Results and Forecast

This note following Dynatrace’s earnings may be of interest. Here is a section:

Dynatrace shares are up 5.9% in premarket trading, after the infrastructure-software company reported fourth-quarter results that beat expectations and gave a full-year forecast that is ahead of the analyst consensus.

Barclays (equal weight, PT $41)
Profitability metrics were “all nicely above consensus,” while the outlook seems conservative
“The results and guide provide ammunition for the bulls, suggesting stronger product/[go-to-market] execution and/or improving macro conditions”

Eoin Treacy's view

The market environment has changed from worrying about a recession to the fervent belief that AI will both solve all of humanity's problems and ultimately result in our annihilation. The reality is any model is only as good as the data it is trained on. That gives a clear advantage to the data repositories.  
The AI asked how to destroy humanity took the same route as anyone else to find the answer. It googled it and came up with nuclear weapons. A custom virus would have been a more imaginative answer. There is now an AI that has been trained on the dark web. It is reasonable to expect it will have a good idea about where to procure illicit drugs, weapons or slaves. That information can be used for good or ill in equal measure.

I created an initial list of AI shares in the Chart Library. Here is a link. Dynatrace has an automated service that corrects errors in code within cloud infrastructure for example. Okta is developing automated programs. CS Disco is an AI tool for legal research. C3.ai is beginning to gain traction as it firms within its base. 

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