Stockchase Opinions

Jim Cramer - Mad Money Coupa Software COUP-Q COMMENT Nov 21, 2022

It's losing a lot of money, but when they pivot and making money again, the stock will do well. It's well run.
$45.630

Stock price when the opinion was issued

Technology
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

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RISKY

Huge cash flow and profitability. Has over 1,400 customers including Uber, United Airlines and Lululemon. Software helps companies monitor costs with less implementation time and employee training. COUP provides a cloud-based platform that connects organizations with millions of suppliers globally. Is up 90% in the past year, though down nearly 6% today. Now is a buying opportunity--it's on sale. It is speculative, but could be the next Salesforce.

BUY

Coupa vs. BILL-N It offers a cloud-based software that helps companies automate expense management. They have a proven ROI. They are helpful particularly for cash-strapped companies to cut corners. It has a great track record of beating quarters. BILL is more expensive than Coupa, although Coupa has a much faster growth rate and better earnings. Coupa is better.

WATCH
It reports Monday. Unfortunately, it reports on the heels of Omicron, of which we'll learn more about soon.
COMMENT
A well-run cloud software company that handles procurement. Are rumours they're for sale. Trades at a high PE, but are doing a great job. Wall Street has no patience for such cloud stocks. Coupa needs to high profits and cash flow (or get taken over) rather than pursuing growth at all costs. Or shares will go nowhere.