Will the earnings call provide insights into Domo's capital allocation plans, such as R&D spending or M&A activity?

Yes – the upcoming Q2 FY2026 earnings call is the most direct venue for Domo to outline its capital‑allocation roadmap, including R&D intensity and any M&A initiatives. Management’s commentary on the quarter’s spend‑down, product‑development pipeline, and the balance‑sheet health will give investors a clearer view of how much cash the company intends to reinvest in innovation versus external growth. Historically, Domo’s calls have included a “Capital Allocation” segment where the CFO discusses R‑D budgets, head‑count plans and any strategic acquisitions under consideration. If the firm signals a lift in R&D spend or hints at a deal‑hunt, that could re‑price the stock ahead of the release.

From a market‑dynamic perspective, the call is likely to be a catalyst for short‑term volatility. If Domo confirms a robust R&D spend increase or announces a concrete M&A target, the upside narrative could attract growth‑oriented investors and push the stock toward its recent high‑$30‑$35 range (up ~12 % over the past 3 months). Conversely, a muted or defensive stance—e.g., flat R&D and no M&A—might trigger a pull‑back, especially given the broader tech‑sector’s sensitivity to growth‑funding signals. Technically, the shares are holding above the 20‑day SMA and the 50‑day EMA, with the 10‑day EMA trending upward; a breakout above the $35 resistance on strong capital‑allocation guidance would be a bullish entry point, while a breach below the $30 support could signal a short‑cover rally if expectations are not met.

Trading implication: Position based on the tone of the capital‑allocation discussion. A clear commitment to higher R&D or an announced acquisition could justify a long position or buying on pull‑backs near $30‑$32, targeting a move toward $38‑$40 on upside momentum. If the call is tepid, consider a short‑/neutral stance, protecting on the $30 support level. Keep an eye on post‑call price action and any forward‑looking guidance that adjusts the company’s growth trajectory.