AI Search Stocks Lose $590 Billion in a Day Amid Wall Street's Discontent

Elastic N.V. (NYSE: ESTC) closed at $53.90 on the New York Stock Exchange, down 8.19%. With a market capitalization of roughly $5.6 billion (about KRW 7.8 trillion), the company lost around $420 million (approximately KRW 590 billion) in value in a single day. Trading volume reached about 1.61 million shares, indicating heavy investor activity.

During the first quarter, SG Americas Securities raised its stake in Elastic by more than 60-fold, bringing its holding to approximately $27.43 million. On Wall Street, analysts’ ratings break down to 18 buys, 10 holds and 2 sells, with an average price target near $80. Although Elastic’s fourth-quarter results, announced at the end of May, beat expectations with 16% revenue growth, its first-quarter guidance fell short of forecasts. A downgrade to “strong sell” by Jacks Research and several subsequent target-price cuts also weighed on investor sentiment.

Elastic is a cloud-software company offering a “Search AI Platform” for search, log analytics and security monitoring. Through Elasticsearch, Kibana and its security and observability solutions, it excels at extracting insights from vast data sets. Since its 2018 IPO on the New York Stock Exchange, the Amsterdam-headquartered firm has been viewed as a key beneficiary of growing demand for AI-driven search and data analytics across the U.S. and Europe.