Technology stocks dropped hard in March 2021, impacting enterprise software company Coupa Software (COUP). In March, the COUP stock dropped 25% earlier this year, closing at $254.48 on March 31. How did this happen, and will COUP be able to return to growth?
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A stock of Coupa Software Incorporated (COUP) gained 6.63% to close at $254.48 on Wednesday. The volume remained 1.8 million shares, which was above the average of 1.46 million shares within the last 50 days.
Over the last year, COUP shares have risen by 82.12%. In the past week, they moved up by 0.58%. The stock has shed -25.26% over the past three months, while it has lost -7.26% over the past six months. Further, the Coupa Software has a current market of $18.37 billion, and its outstanding shares stood at 72.19 million.
In other words, Coupa Software (COUP) is a good investment based on its financial performance. The COUP stock’s prospects have been assessed by investors recently. Even with COVID-19 putting pressure on it, its growth rate is still high. Coupa sales rose 50 % last fiscal year (ends January 31, 2021). In addition to the 25 % growth forecast for this year, we expect to surpass it.
Coupa Software’s Financial Performance Management product is a promising product for managing the financial performance of enterprises. Businesses seek ways to do business more efficiently, such as reducing costs associated with processes such as billing, analytics, search, and more, by utilizing Coupa products. Coupa is the beneficiary of the telecommuting phenomenon and the cloud migration phenomenon.
After COVID-19, the growth rate may have slowed, stocks could have dropped, and Coupa Software (COUP) became more ‘attractive’ concerning stock.
The very high valuation of COUP shares is the main reason why COUP shares exhibit such high volatility and how sensitive they are to market sentiment. With annual revenue of $ 540 million and a $ 180 million loss, the COUP stock reported a $375 million high in February. The forward price-to-earnings ratio is still above 396, even with a positive financial outlook.
Recently, Coupa Software (COUP) bought the supply chain software company, LLamsoft, for $1.5 billion. Coupa has secured about $ 105 million in annual revenues during the acquisition, but Coupa has not yet made the subscription software. Profits are unlikely to increase dramatically in the next two years from this purchase.
