Elastic’s F1 partnership puts its technology on the grid
Elastic (NYSE:ESTC) is moving from data centers to the pit lane, after being named Official Race Partner of the 2026 United States Grand Prix and future Search and Observability Supplier to the Audi Revolut F1 Team.
The Audi Revolut F1 deal lands after a busy stretch for Elastic, with a new non executive director added this month and the stock logging a 67.37% 90 day share price return and a 12.69% one year total shareholder return. This suggests momentum has been building even before the Grand Prix branding goes live.
Scan for more high-performance software plays by checking out the hand-picked 55 AI infrastructure stocks that are riding similar data and AI tailwinds as Elastic’s new F1 partnership.
Elastic’s share price has already moved hard on excitement around AI and the F1 tie up, while analyst targets and intrinsic estimates still point higher. Where does fair value really land in that spread?
Most Popular Narrative: 11% Undervalued
Elastic closed at $98.21, while the most followed narrative pegs fair value at $110.69, using an 8.51% discount rate and a detailed set of future assumptions to bridge that gap.
Deepening long term enterprise commitments, reflected in more than 1,800 customers with at least US$100,000 in ACV, over 37% of these using Elastic for AI use cases and cRPO and RPO growth above 20%, indicate that Elastic is increasingly embedded as core AI, observability and security infrastructure. This positioning can support multiyear revenue visibility and help operating margins as the customer base scales.
See why 37 investors see Elastic as 11% undervalued.
Result: Fair Value of $110.69 (UNDERVALUED)
Still, Elastic’s story can break if hyperscalers squeeze its pricing power or if recent concerns about overvaluation and insider selling keep appetite for the stock muted.
Find out about the key risks to this Elastic narrative.
Next Steps
On balance, the Elastic story involves both excitement around AI infrastructure and clear question marks about risk. Consider promptly stress testing the thesis from both perspectives and weighing the 3 key rewards and 3 important warning signs.
Looking for more investment ideas beyond Elastic?
Do not stop with one story. Broaden your watchlist with fresh ideas that target different styles of opportunity, so you are not relying on a single outcome.
- Target quality at a discount by scanning companies that screen well on valuation and fundamentals through the 29 high quality undervalued stocks.
- Prioritise resilience by focusing on businesses with robust finances using the list of solid balance sheet and fundamentals (26 results).
- Hunt for off-the-radar potential by reviewing the 20 high quality undiscovered gems before these ideas sit on everyone else’s radar.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com