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Domo (DOMO): Reassessing Valuation After CEO Transition, Interim Leadership and Latest Earnings Update

Simply Wall St · 2d ago

Domo (DOMO) just dropped a double header: a leadership shift as CEO Joshua James scales back duties for health reasons and CTO Daren Thayne steps in as interim principal executive, alongside fresh quarterly results and guidance.

See our latest analysis for Domo.

The leadership news and earnings update come after a sharp reset in sentiment, with a 1 month share price return of minus 30.05 percent and a 3 year total shareholder return of minus 49.69 percent, signalling fading momentum despite this year’s rebound.

If Domo’s volatility has you rethinking where to seek more durable trends, it could be worth exploring high growth tech and AI stocks for other data driven growth stories in the same broader space.

With shares down sharply despite improving losses and the stock still trading well below analyst targets, is Domo now an overlooked AI and data platform at a discount, or is the market already pricing in all the growth ahead?

Most Popular Narrative Narrative: 52.2% Undervalued

With the narrative placing fair value near 18.5 dollars against Domo’s 8.84 dollars last close, it frames Domo as a deep discount story.

The rapid enterprise shift toward deploying advanced AI and LLM-powered analytics is accelerating demand for Domo's end-to-end platform, which natively integrates AI, data integration, workflow automation, and governance. Benefiting from organizations' need to monetize growing volumes of data and capitalize on AI-driven insights, this increases Domo's total addressable market and positions it for sustained revenue expansion.

Read the complete narrative.

Want to see the full playbook behind this upside case? The narrative quietly leans on modest top line growth, rising margins, and a future earnings multiple that could reshape how this stock is viewed.

Result: Fair Value of $18.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising dependence on major cloud partners, along with potential volatility from its consumption based pricing shift, could quickly challenge the bullish undervaluation thesis.

Find out about the key risks to this Domo narrative.

Build Your Own Domo Narrative

If you see the story differently, or would rather dive into the numbers yourself, you can build a personalized thesis in minutes using Do it your way.

A great starting point for your Domo research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.