Data storage and security software firm Rubrik is the IBD Stock Of The Day. Rubrik stock, now trading above its 50-day moving average, has advanced over 40% in 2025.
Rubrik sells a cloud-computing-based data backup and recovery platform aimed at protecting companies from ransomware attacks. About 85% of Rubrik's revenue comes from subscription software sales.
On the stock market today, Rubrik stock gained 7% to close at 95.42. Shares pulled back in mid-June after Rubrik announced a $1 billion convertible debt offering that will dilute existing equity.
Rubrik has formed an eight-week base with a traditional buy point of 103. But the stock is actionable as it retakes its 50-day moving average with a strong move. It also traded above an early entry at 92.99.
Stiff Competition
Rubrik's main competitors include Veeam, Commvault, Dell, Cohesity and Veritas.
"Rubrik is a true platform company," Chief Executive Bipul Sinha said on the company's Q1 earnings call with Wall Street analysts.
"We actually took on legacy backup and recovery and transformed that into a data security platform to deliver cyber resilience. And our Rubrik Security Cloud has a built in preemptive recovery engine that takes the cyber recovery time from weeks and months to hours. And that is what is making us win."
He added: "We are the only vendor that provides comprehensive cyber resilience across data and identity, both across risk and remediation. And because of our unique offering and platform approach, we are winning customers, and we are winning vast majority of the deals in head-to-head competition. And this new identity resilience angle is expanding our total addressable market, because not only data risk comes from ransomware and other data sensitivity, but the identity stealing and identity-based attacks are on the rise in a very significant way."
Rubrik Stock: 2024 IPO
Meanwhile, Palo Alto Networks on Wednesday announced the $25 billion acquisition of security identity vendor CyberArk.
In June, Rubrik acquired generative artificial intelligence startup Predibase as it expands further into data management.
Rubrik's initial public offering in 2024 raised over $750 million, with shares priced at 32. Founded in 2014, Rubrik's investors include Microsoft.
Rubrik reported a narrower-than-expected first-quarter loss.
In the quarter ending April 30, Rubrik lost 15 cents per share vs. a $1.58 loss a year earlier. Wall Street analysts that follow Rubrik stock had estimated a loss of 32 cents per share. Rubrik said revenue rose 49% to $278.5 million, topping estimates of $260 million.
For Rubrik, Wall Street views subscription-based annual recurring revenue as a key financial metric.
In Q1, Rubrik reported subscription-based ARR of $1.18 billion, up 38% and topping a consensus of $1.16 billion.
As of April 30, Rubrik had 2,381 customers with subscription ARR of $100,000 or more, up 28% year over year.
For the July quarter, Rubrik forecast revenue of $282 million at the midpoint of guidance vs. estimates of $273 million.
Rubrik Stock Technical Ratings
Meanwhile, Rubrik stock holds an IBD Composite Rating of 77, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Rubrik has an Accumulation/Distribution Rating of D. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are selling than buying.
Meanwhile, Rubrik stock has a 21-day ATR of 4.36%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
IBD suggests stocks with ATRs of up to 8% in the current market.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
