Sumo Logic: Beaten Down For No Reason

Sep. 12, 2021 8:25 AM ETSumo Logic, Inc. (SUMO) StockSUMO7 Comments
Gary Alexander
31.2K Followers

Summary

  • Shares of Sumo Logic fell nearly 10% after reporting Q2 results, despite a quarter that was par for the course for this company.
  • Sumo Logic's revenue growth beat expectations in Q2, but Q3 guidance came in slightly lower than investors had hoped for.
  • This is a familiar pattern for Sumo Logic: setting the bar low, and crossing it eventually.
  • Sumo Logic remains a broad use-case technology trading at a compelling valuation that should be a portfolio anchor during market volatility.

Sumo Logic headquarters in Silicon Valley
Sundry Photography/iStock Editorial via Getty Images

With the downside action we've seen in the markets so far in September, we can confirm one broad theme: investors are beginning to get unsettled at all-time market highs. Some of this year's highest-flying winners are showing

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This article was written by

31.2K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SUMO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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