Why Dynatrace Stock Jumped 35% Through the First Half of 2021
Cloud observability software leader Dynatrace (NYSE: DT) jumped 35% higher through the first half of 2021, according to data from S&P Global Market Intelligence. The company's annual recurring revenue (ARR, the annualized value of sales from a single quarter) increased 35% year over year to $774 million during its fiscal 2021 fourth quarter (the three months ended March 31, 2021). With management indicating it thinks it can sustain at least a 30% growth rate for the foreseeable future, shares rocketed higher in response.
Global cloud computing software spend is going to mop up some $330 billion this year, according to tech researcher Gartner. The industry overall should reach $1 trillion a year in short order as IT quickly adopts the new operating model. Cloud-based systems are flexible, easy-to-deploy to devices, and help unlock new efficiencies for businesses making the upgrades.
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Source Fool.com
