CFLT Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Confluent Inc (CFLT) is not a good buy at the moment for a beginner investor with a long-term strategy. The stock is trading close to its acquisition price of $31 per share, and the market has already priced in the IBM acquisition. There is limited upside potential, and analysts have downgraded the stock due to the acquisition. Additionally, there are no significant trading signals or catalysts to suggest immediate growth opportunities.
The technical indicators are mixed. The MACD is below 0 and negatively contracting, showing bearish momentum. RSI is neutral at 52.22, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot point of $30.473, with resistance at $30.618 and support at $30.328. Overall, there is no clear trend suggesting a strong buying opportunity.
The company reported strong Q4 revenue growth of 20.5% YoY, and gross margin increased to 74.7%. Hedge funds are buying, with a 105.09% increase in buying activity over the last quarter.
The stock is being acquired by IBM for $31 per share in an all-cash deal, limiting any significant upside potential. Analysts have downgraded the stock due to the acquisition, and there are no competing bids. Net income and EPS have declined YoY, and there is no recent congress trading data to indicate political interest.
In Q4 2025, Confluent reported revenue of $314.82 million, up 20.5% YoY. However, net income dropped to -$79.25 million (-10% YoY), and EPS decreased to -$0.23 (-14.81% YoY). Gross margin improved slightly to 74.7% (+0.77% YoY). While revenue growth is strong, profitability remains a concern.
Analysts have downgraded the stock to neutral or market perform due to the IBM acquisition at $31 per share. The price target has been adjusted to $31 by multiple firms, reflecting the acquisition price. There is no expectation of competing bids, and analysts see limited upside.
