What Happened: Shares of software development tools maker JFrog (NASDAQ:FROG) jumped 5.61% in the morning session after William Blair analyst Jason Ader upgraded the stock's rating from Market Perform (Neutral) to Outperform (Buy). The analyst highlighted Jfrog's "DevOps-focused" security offerings, new product features, and the growing adoption of generative AI as tailwinds for the company's growth.
Jfrog has been expanding its product capabilities in recent quarters. For example, in July 2023, it introduced JFrog Curation, an automated DevSecOps solution designed to protect against malicious open source or third-party software packages. The new capabilities highlight Jfrog's focus on adding value to its customers and provide multiple ways to win in the growing DevSecOps space. After the initial pop the shares cooled down to $27.99, up 3.94% from previous close.
Is now the time to buy JFrog? Find out by reading the original article on StockStory.
What is the market telling us: JFrog's shares are quite volatile and over the last year have had 22 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was four months ago, when the stock gained 7.53% on the news that the company reported first-quarter results that exceeded analysts' revenue, operating income, and earnings per share (EPS) expectations. Customer growth also accelerated, though net revenue retention rate declined. In addition, revenue guidance for the next quarter and full year were in line with Consensus estimates. Overall, it was a strong quarter for the company.
JFrog is up 27.1% since the beginning of the year, and at $27.99 per share it is trading close to its 52-week high of $30.77 from July 2023. Investors who bought $1,000 worth of JFrog's shares at the IPO in September 2020 would now be looking at an investment worth $431.70.
