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How to buy Sumo Logic stock (SUMO)
Its revenue is on an upward trajectory — as are its losses.
Sumo Logic stock is now available to purchase on the Nasdaq Global Select Market (NASDAQ). Here’s how you can buy in.
How to buy shares in Sumo Logic
Here’s what to expect of the Sumo Logic investment process:
Compare share trading platforms. If you’re a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
Search for Sumo Logic. Find the stock by name or ticker symbol: SUMO. Research its history to confirm it’s a solid investment against your financial goals.
Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Sumo Logic stock reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy a fractional share of Sumo Logic, depending on your broker.
Check in on your investment. Congratulations, you own a part of Sumo Logic. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
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What we know about Sumo Logic’s IPO
Sumo Logic’s stock launches on September 17 on the Nasdaq Global Select Market under the ticker symbol “SUMO.” It aims to raise $281 million from public shareholders to fund operating expenses and potential acquisitions.
Sumo Logic’s stock launched at $22 per share. The deal was underwritten by Morgan Stanley, J.P. Morgan, RBC Capital Markets and Jefferies.
Now that the stock is available for purchase, interested investors will need a brokerage account to buy in.
What we know about Sumo Logic’s balance sheet
There’s both good news and bad news for investors interested in backing Sumo Logic. The good news is that the company’s revenue is on an upward trajectory. The bad news: so are its losses.
In fiscal 2018, Sumo Logic reported a net loss of $32.4 million on $67.8 million in revenue. In fiscal 2019, it experienced a net loss of $47.7 million on $103.6 million in revenue. And in fiscal 2020, Sumo Logic reported a net loss of $92.1 million on $155 million in revenue.
In the tech sector — and more specifically, the SaaS industry — growth is often pursued over profit. Young companies like Sumo Logic may not be as preoccupied with profitability as it focuses on scaling its operations and acquiring smaller businesses to help extend its reach. That said, Sumo Logic isn’t a profitable company. Its revenue is growing, but so are its losses.
Sumo Logic investment risks
In addition to competitors like Splunk and Datadog, Sumo Logic is also up against the likes of Amazon Web Services, Microsoft Azure and Google Cloud. The tech industry is competitive enough as it is, and Sumo Logic is stepping into the ring with some well-established heavy hitters.
Continuous pricing pressure coupled with the ever-evolving market could potentially harm Sumo Logic’s business. Past performance is no guarantee of future profitability and no investment is risk-free.
Sumo Logic compared
Sumo Logic is a cloud-based data analytics company. It was founded in 2010 and is headquartered in Redwood City, California. It provides continuous business, operational, security and global intelligence through real-time analytics and machine learning.
Sumo Logic isn’t an accredited business with the Better Business Bureau (BBB) but receives an A rating for its length of time in business.
How are similar stocks performing?
For an idea of how the market performs for similar data analytics companies, take a look at the stocks below. But keep in mind that the performance of these competitors isn’t a direct indicator of how Sumo Logic will fare once it goes live.
Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.
Company summary
Dynatrace, Inc. provides a software intelligence platform for the enterprise cloud applications. It operates Dynatrace, a platform for running an enterprise cloud. The company's products include AppMon that works in various application environments, such as mobile apps, web apps, web browsers, web servers, Java, .NET, Node.js, PHP, databases, middleware, and mainframe; Classic Real User Monitoring, which tracks user's experience from an edge devices comprising smart phones, tablets, PCs, or kiosk through cloud services, as well as customer's web tiers; Network Application Monitoring that provides enterprise applications, network services, user experience, and application delivery across wide-area networks; and Synthetic Classic, which offers customer experience, as well as is used to monitor application and application program interface availability and performance. Its platform allows its customers to modernize and automate IT operations, develop and release software, and enhance user experiences. The company also offers implementation, consulting, and training services. Dynatrace, Inc. markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, insurance, retail, manufacturing, travel, and software. The company operates in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Dynatrace, Inc. is headquartered in Waltham, Massachusetts.
Historical performance
Stock information
Market capitalization: $10947716096
Dividend yield: 0%
Company summary
Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company's SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management to provide real-time observability of customers technology stack. Its platform also provides user experience and network performance monitoring, and various shared features, such as sophisticated dashboards, advanced analytics, collaboration tools, and alerting capabilities. The company was founded in 2010 and is headquartered in New York, New York.
Historical performance
Stock information
Market capitalization: $26805714944
P/E ratio: 1301.4286
Dividend yield: 0%
Company summary
Splunk Inc. develops and markets software solutions that enable organizations to gain real-time operational intelligence in the United States and internationally. The company offers Splunk Enterprise, a real-time data platform, which include collection, indexing, search, reporting, analysis, alerting, monitoring, and data management capabilities; and Splunk Cloud, a cloud service for machine data. It also provides Splunk Enterprise Security that addresses security threats and information, and event management use cases; SignalFx, which provide real-time observability and troubleshooting for cloud infrastructure and applications; Splunk IT Service Intelligence that monitors health and key performance indicators of critical IT and business services; Splunk Phantom that automates and orchestrates incident response workflows; VictorOps for collaboration and IT issue resolution; Splunk Data Stream Processor, which collects, process, and distribute data with real-time stream processing; and Splunk Data Fabric Search that enables highly complex and high-performance searches of massive datasets. In addition, the company provides Splunk App for Amazon Web Services that collects and analyzes data from amazon web services data sources; Cisco Firepower App for Splunk that Incorporates advanced visualizations and investigative capabilities for Cisco Firepower and Firepower Management Console; Splunk Machine Learning Toolkit, which Includes custom visualizations and guided workflows; Splunk Connected Experiences that provides access to data, alerts, and actions on mobile and connected devices; and Splunk apps and add-ons. Further, the company offers application programming interfaces and software development kits; and maintenance and customer support, training, and consulting and implementation services, as well as operates Splunkbase and Splunk Answers Websites. Splunk Inc. was incorporated in 2003 and is headquartered in San Francisco, California.
New Relic, Inc., a software-as-a-service company, provides platform that companies use to build, develop, and operate their digital businesses worldwide. It offers a suite of products on its open and extensible cloud-based platform, New Relic One Platform, which enables users to collect, store, and analyze telemetry data flowing through and about their software. It provides prebuilt dashboards and visualizations, as well as the ability to search across data types, create customized dashboards, and build applications that can be shared and customized by other users. The company offers customers with software code to add to their applications and infrastructure; open data application performance interfaces, and software development kits, as well as open source connectors and technologies for customers, partners, and third-party developers to extend its platform into their products; cloud-based architecture and big data database; and New Relic Application Performance Monitoring, Mobile, Browser, Synthetics, Infrastructure, and Insights products for analyzing data. It also provides New Relic chart builder, dashboards, and programmability features that allow customers to use connected data to build visuals; New Relic Applied Intelligence to spot abnormal behavior across billions of pieces of data; and New Relic Alerts, which provides a centralized notification system. It sells its products through direct sales organizations, and online and offline sales. The company was founded in 2007 and is headquartered in San Francisco, California.
Historical performance
Stock information
Market capitalization: $3253176064
PEG ratio: 30.3167
Dividend yield: 0%
Company summary
Elastic N.V., a search company, delivers technology that enables users to search through structured and unstructured data for a range of consumer and enterprise applications. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as perform search, analysis, and visualization. The company's Elastic Stack product comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems. It also provides software solutions on the Elastic Stack that address cases, including app search, site search, workplace search, logging, metrics, application performance management, business analytics, and security analytics. Its products are used by individual developers and organizations of a range of industries. The company was founded in 2012 and is headquartered in Mountain View, California.
Historical performance
Stock information
Market capitalization: $9033550848
Dividend yield: 0%
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Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.
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