Alteryx, Inc. (AYX)

I bought AYX because the nascent AI industry is mostly driven by huge companies (GOOGL, MSFT, AMZN) and there aren't many smaller, public, pure-AI players at this time. In this respect, small to medium sized AI companies have good prospect for growth and the best case scenario is if they get acquired by one of the majors. AYX is a good bet because they are not a just-started startup and they have a proven track record of growing revenues and customer list. They are also a medium sized compared to other AI players. My plan is to invest in 3-4 prospects in the AI industry and hold for a few years. Do your own research and don't be a hater if u don't agree w/ me.

I believe the risk reward sets up quite well, right here. Between Thursday and Friday, the stock got over a 33% hair cut. Which I believe was extremely over done.

Looks like analysts agree, as many barely moved their price targets:
Alteryx price target lowered to $195 from $216 at Goldman Sachs, Buy

Alteryx price target lowered to $185 from $195 at Piper Sandler, Overweight
Alteryx price target lowered to $180 from $190 at Oppenheimer, Outperform
Alteryx price target lowered to $172 from $192 at Needham, Buy

My reasons for adding:
1. As noted in article, company always guides very conservative (just like they did the previous quarter, and then beats). So it fully makes sense for them to do so again given we are still in the midst of the pandemic (and even with their conservative forecast as still projecting to grow their revenues). With ARR projected to grow 30%.

2. They are best in breed in their field with long term multi year/decade secular tailwinds at their back. They used this time to further enhance and build out their APA platform. Which will allow them to hit the ground running as the virus issues get better resolved. This will allow a rapid re-acceleration of revenues. When this occurs their will be little time to get on board (Without missing a quick 25-50% upside). It will not take much to get this, it could simply be in the next quarter a simple comment about an improvement in outlook and conditions in the market and it will be a rocket higher.

Many people are looking for a "re-opening" stock to buy in anticipation of better news on the virus / vaccine front. I would contend Alteryx is an excellent choice especially after their recent selloff has been largely de-risked. One that offers a potential 100% upside within 12 months, 300 % potential in 24months, both on a stand alone basis (or possible takeout target).

Alteryx has been growing more than 45% per year since going public until this year, when growth is expected to be 11.6%, and next year, when it is expected to be 27.2% (both estimates are likely to be too low). The company is largely an SaaS (software as a service) company, but it does have marketing/sales people visit company sites to show buyers how to use the software--and this has slowed dramatically during the pandemic. Analysts covering it have an average buy rating (5 strong buys, 5 buys, 3 holds and 1 sell), with an average price target of $162.64. Alteryx provides data analytics for companies--the need for this will only increase over time. One expert in the field provides the following example:

"Home Depot has 2000 stores, it has 200,000 skus and each store will hold 100,000 skus. You can imagine all the combinations and permutations this yields. Alteryx is the key to harnessing this data. It takes Home Depot 2 weeks to crunch and simply prepare data from the permutations when traditional software is used. It takes Alteryx software under one hour. It tells Home Depot exactly which product to place on which shelf during July of a calendar year (a solution to a question with millions of possible outputs). It tells them what product to make seasonally available. It tells pro sports teams who to put on the floor in the last 2 minutes of a game." I added to my holdings yesterday.