Momentum members get our 3 top stock breakdowns every week — covering the biggest themes across AI, semiconductors, data centers, power demand, networking, and high-growth tech.

This week, we are watching Elastic N.V. (ESTC).

Most traders understand the AI software trade through names like Microsoft, Palantir, Snowflake, and the major cloud platforms.

But underneath that, another layer of AI adoption is starting to matter more: search and data retrieval.

Companies do not just need AI models. They need better ways to find, analyze, secure, and use the massive amount of data already sitting across their systems.

That is where Elastic fits in.

The company operates the Elasticsearch Platform, which helps businesses search through data, monitor applications, detect security threats, and build AI-powered search experiences.

Its platform is tied to areas like:

As AI adoption expands, one of the biggest problems for companies is turning scattered data into useful answers.

AI tools are only as valuable as the information they can access, understand, and retrieve. That makes search, security, and observability more important as businesses build AI into real workflows.

The company recently reported $478M in quarterly revenue, up 15% year over year, with subscription revenue also rising 15% to $449M.

Elastic also raised its fiscal 2027 revenue outlook, showing that demand for its search, AI, security, and observability platform remains solid.

Why We Are Watching:

ESTC gives investors exposure to an important part of the AI software stack.

The company is tied to several major themes:

The key risk is that Elastic competes in a crowded software market, and growth is not as explosive as some higher-beta AI names.

But the setup is interesting.

As companies move deeper into AI, they will need better ways to search, monitor, secure, and understand their data.

Elastic gives investors exposure to that search and AI infrastructure layer behind enterprise software.

Momentum members get our 3 favorite stock breakdowns every week — plus the full Sunday research map covering the biggest themes across AI, semiconductors, data centers, power demand, networking, and high-growth tech.

Disclaimer: Momentum is for educational and research purposes only. Nothing in this email is financial advice, a buy/sell recommendation, or a trade alert. Please do your own research before making any investment decisions.