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Alteryx Drops but Wall Street Sees Second-Half Rebound

Alteryx reported strong fourth-quarter results, but a new sales strategy left the stock down big Wednesday.
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Shares of data analytics platform company Alteryx  (AYX)  dropped almost 16% Wednesday despite its fourth quarter-beat as investors focused on the company's new sales strategy.

On Tuesday after the close, the Irvine, Calif.-based company reported earnings of 62 cents per share, double analysts' 31 cent per share expectations, on revenue of $160.5 million that also topped estimates of $152.7 million. 

However, the company also announced adjustments to its sales strategy that had investors and Wall Street analysts concerned about short-term headwinds for Alteryx. 

Alteryx shares were falling 15.8% to $116.69 per share on Wednesday. 

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Here's what Wall Street is saying:

Rosenblatt Securities maintained the company's buy rating while raising its price target to $150 from $145, saying that the first-half headwinds will pressure the stock, "but will set the stage for Alteryx's product transition to the cloud and improve its recurring revenue growth prospects."

Piper Sandler has an overweight rating and a $160 price target on Alteryx, with analyst Brent Bracelin recommending buying the dip and "building a core position" in the company, according to Bloomberg. 

Citi kept its buy rating and $165 price target, saying that the disappointing report suggests "a significant slowdown in new business activity that has yet to recover," according to Bloomberg. Alteryx's issues are a "combination of cyclical, execution, and product, but ultimately they look fixable," analyst Tyler Radke wrote. 

Meanwhile, Cowen analysts maintained an outperform rating and $150 price target, while stating that Alteryx is making significant go-to-market investments that should pay off in the second half of the year, even as the stock could see headwinds on the "back-half weighted net new [annual recurring revenue] & much lower [operating] income," according to Bloomberg.