Confluent Stock Forum

Confluent's high P/S ratio is justified by its superior revenue growth and promising future. However, investors should be aware of 4 warning signs for Confluent.

Analysts express increased confidence in Confluent's outlook, citing the strong Q4 performance and the company's guidance for 2024. The company's product market fit and competitive edge in the data streaming category are also highlighted as strengths.

Disney's investment in Epic Games and strong earnings report are set to boost investor confidence. PayPal's lower-than-expected earnings forecast could negatively impact its stock. Arm Holdings' and Confluent's strong revenue forecasts may positively impact their stocks. Wynn Resorts' and Blue Bird's strong earnings could boost their stocks.

The company's strong Q4 performance has boosted confidence in achieving its revenue guidance for 2024 and its first breakeven year for both non-GAAP operating margin and free cash flow margin.

Confluent's revenue growth outpaced peers but its full-year guidance was weakest. Teradata's quarter was decent, but missed Wall Street's income and cash flow estimates. C3.ai's quarter was weak with disappointing next quarter revenue guidance. Elastic had a mixed quarter with a decent revenue beat but slowing customer growth.

Despite high price-to-sales ratio, Confluent shareholders hold onto shares, probably buoyed by company's impressive, projected revenue growth. This optimism seemingly maintains high ratio, stabilizing share price.

Analyst Peter Weed believes Confluent's relation to the larger cloud industry suggests a possible revenue spike as cloud growth restarts. Despite business modelling debates, he anticipates the company could generate up to $6B in annual recurring revenue by 2030.