Domo, Inc. (DOMO): The Cloud Computing Stock Analysts Can't Resist?

As an investor, you're always on the lookout for the next big thing in the tech sector. Cloud computing stocks have been a hot topic lately, and one name that keeps popping up in analysts' discussions is Domo, Inc. (DOMO). But is Domo the best cloud computing stock to buy according to analysts? Let's dive into the data and find out.

First, let's take a look at Domo's recent performance. The company reported a solid Q3 Fiscal Year 2025 earnings call, with a 3% year-over-year increase in subscription RPO and a 14% year-over-year growth in subscription RPO beyond 12 months. This momentum is particularly significant, as it underscores the strength of Domo's relationships with its customers, who are increasingly committing to long-term partnerships with the company.



Domo's strategic priorities, including ecosystem-led growth, consumption pricing, and AI, were discussed at length during the call. The company's focus on ecosystem-led growth is yielding results, with partner-sourced contributions to billings increasing by over 20% from Q2 and a significant uptick in partner-sourced new logos. This shift towards ecosystem partnerships reflects Domo's recognition of the value of collaborating with other businesses to create synergies and drive growth.



Domo's investment in AI is starting to bear fruit, with the company seeing a surge in demand for its AI solutions. Customers are recognizing the value of Domo's AI capabilities, which are helping them gain insights, automate processes, and make data-driven decisions more effectively. This trend is expected to continue, as businesses increasingly seek to harness the power of AI to drive efficiencies and unlock new opportunities.



Domo's leadership expressed optimism about the company's future, with a focus on optimizing for the long-term rather than short-term gains. The company's strategic investments in AI, consumption pricing, and ecosystem partnerships position it well for continued growth and success in the evolving data and analytics landscape.

In conclusion, Domo, Inc. (DOMO) is a strong contender in the cloud computing stock arena, with a solid financial performance, strategic focus on AI and ecosystem partnerships, and a positive outlook from analysts. While the final decision to invest in Domo should be based on your own research and risk tolerance, the company's recent performance and analyst sentiment make it an attractive option for investors looking to capitalize on the growth potential of the cloud computing sector.