Why Domo Stock Crushed the Market Again Today

Key Points

• The data analytics specialist announced a new strategic collaboration.

• Its partner is a famous name in the cloud computing world.

• 10 stocks we like better than Domo ›

Hours before it was to report its second-quarter results, Domo (NASDAQ: DOMO) pleased investors with news of a high-profile business partnership. They were clearly encouraged by this development, as they pushed shares of the data analytics specialist significantly higher (by 9%) for the second trading session in a row. This pop was well higher than the 0.2% increase of the benchmark S&P 500 index.

A new strategic collaboration

That morning, Domo revealed that it has entered into a fresh strategic collaboration agreement with top cloud services provider Amazon Web Services (AWS).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

The deal centers on the provision of artificial intelligence (AI) capabilities; in Domo's words the two companies will "help mutual customers harness the power of generative AI (GenAI) to build AI-powered solutions that improve business outcomes."

AI, the hot next-generation technology of the moment, is quickly being integrated into the offerings of many business process solutions providers, Domo being one example.

Despite its obvious enthusiasm for the new arrangement, Domo did not provide the financial particulars of the new Amazon arrangement.

AI for the win

Domo did, however, cite findings from a company called ISG Research forecasting that, through 2027, more than 50% of all businesses will realize their ability to harness AI effectively is insufficient. They will therefore require new investment into redressing this, providing a potentially lucrative customer base for the Domo/AWS partnership.

The former company has fully embraced AI as part of its future. It offers Domo AI, a sprawling collection of solutions and tools that take advantage of the technology.

Domo-watchers should keep their eye on the stock, as Thursday trading in the shares will be affected by those second-quarter results (scheduled to be published after market hours Wednesday).

Should you invest $1,000 in Domo right now?

Before you buy stock in Domo, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Domo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $661,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,114,162!*

Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.