Beware of New Relic's Short-Term Headwinds
Following better-than-expected fiscal third-quarter earnings results, New Relic's (NYSE: NEWR) management recently warned investors of temporary headwinds over the next few quarters because of the company's transition to a new pricing model. As a result, the tech company's stock price plunged by 16.25% late last week.
Despite the mix of news, investors shouldn't consider buying the dip, as the performance tracking software company's challenges may expand beyond the short term.
With the release of its new cloud platform New Relic One last year, New Relic has become an observability specialist. That means it provides developers and engineers with an integrated and complete look at an enterprise's operational data which helps it anticipate issues and improve the performance of computing infrastructures and applications.
Source Fool.com
