Elastic: Despite The Strong Gen AI Opportunity, I'd Rather Go With MongoDB
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Elastic has potential in gen AI applications but faces competition from Datadog and MongoDB. Datadog outperforms Elastic in financial metrics and is cheaper, making it a more attractive investment. Elastic's lack of in-house LLM development may weaken its competitive edge.
March 01, 2025 | 1:15 pm
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NEGATIVE IMPACT
Elastic has potential in gen AI but faces strong competition from Datadog and MongoDB. Its lack of in-house LLM development may weaken its competitive edge.
Elastic's potential in gen AI is acknowledged, but the competition from Datadog and MongoDB, which have better financial metrics, makes Elastic less attractive. The lack of in-house LLM development is a significant disadvantage in the observability space.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
MongoDB is a strong competitor to Elastic in the gen AI space, contributing to the competitive pressure Elastic faces.
MongoDB is mentioned as a competitor to Elastic, indicating its role in the competitive landscape of gen AI applications. However, the article does not provide specific financial comparisons or advantages.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Datadog outperforms Elastic in financial metrics and is cheaper in Price/FCF, making it a more attractive investment.
Datadog's superior financial performance, including better gross margins and free cash flow efficiency, along with a cheaper Price/FCF multiple, positions it as a more attractive investment compared to Elastic.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 70