DOMO Should I Buy
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Domo Inc (DOMO) is not a strong buy for a beginner, long-term investor at this time. The stock has shown weak financial performance, bearish technical indicators, and a lack of positive momentum. While there is some optimism from analysts about a potential recovery, the current fundamentals and trading signals do not support an immediate investment.
The technical indicators are bearish. The moving averages indicate a downward trend (SMA_200 > SMA_20 > SMA_5). The RSI is neutral at 29.167, and the MACD is slightly positive but contracting. The stock is trading near its support level (S1: 4.68), with resistance levels significantly higher, indicating limited upward momentum.
Cantor Fitzgerald recently assumed coverage with an Overweight rating and a $22 price target, indicating long-term potential. Analysts expect a billings recovery in Q4.
Recent financial performance is weak, with revenue, net income, and EPS all declining significantly YoY. Analysts have lowered price targets due to missed billings and longer sales cycles. No significant hedge fund or insider activity, and no recent news or congress trading data to drive sentiment.
In Q3 2026, revenue dropped by -0.45% YoY to $79.4M, net income dropped by -44.63% YoY to -$10.39M, EPS dropped by -47.92% YoY to -0.25, and gross margin declined slightly to 74.18%. The company is struggling with profitability and growth.
Analysts are mixed. Cantor Fitzgerald has an Overweight rating with a $22 price target, but other firms like Lake Street and TD Cowen have lowered price targets due to missed billings and longer sales cycles. DA Davidson remains Neutral, citing inconsistent execution and growth outlook concerns.
