Veeva Systems Stock Weakness May Reflect a Larger Long-Term Setup

Almost four years ago, in July, 2022, we wrote that even though Veeva Systems stock was recovering from its 56% slump, that recovery was likely to be temporary. Not that we expected something terrible to happen to the company business-wise. On the contrary, Veeva’s revenue has been growing at a 14.7% CAGR and free cash flow has almost doubled since 2021. The stock, on the other hand, is down 19% since our 2022 article. What put us ahead of that disappointing performance was the chart below and the Elliott Wave message it carried.

While the recent plunge has been attributed to the so-called AI apocalypse, to Elliott Wave analysts it is just a natural part of the cycle. Furthermore, it sets the stage for the resumption of the preceding uptrend. It looks like wave 5 of C is still missing, so we could see a new low in the not-so-distant future. Once there, however, a major bullish reversal would make sense. If this count is correct, new all-time highs are there for the taking in the long term for Veeva Systems investors.