Elastic NV (NYSE:ESTC) saw its stock surge by 8% during after-hours trading on Thursday, rising to $88.07 from its earlier close of $81.55.
Check out the current price of ESTC stock here.
The boost came after the company announced three major updates: it finalized the acquisition of Jina AI, rolled out a new GPU-powered inference service, and approved a $500 million stock buyback program.
According to Benzinga Pro data, ESTC had declined 1.98% during regular trading hours.
Jina AI Acquisition Completed
The data analytics company has wrapped up its purchase of Jina AI, a company known for breaking new ground in open-source tools that handle multiple types of data and languages. Jina AI specializes in technologies like embeddings, rerankers, and small language models.
The acquisition strengthens Elastic's capabilities in vector search, retrieval-augmented generation (RAG), and context engineering for agentic AI. It brings in dense vector models for text and image processing, enhances Elastic's ELSER model, and adds advanced rerankers for visual and multilingual content, along with compact language models for grounding tasks.
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“Search is the foundation of generative AI,” said Ash Kulkarni, CEO of Elastic.
Han Xiao, former Jina AI CEO, joined as vice-president of AI at Elastic.
GPU-Accelerated Inference Service Debuts
The Netherlands-based company also introduced the Elastic Inference Service (EIS), which uses NVIDIA (NASDAQ:NVDA) graphics processing units (GPUs) to deliver up to 10x faster data processing than CPU-based options. The first model available in technical preview is ELSER, with Jina models expected to follow soon.
Steve Kearns, General Manager of Search at Elastic, said, “The Elastic Inference Service meets that challenge by providing our customers with an API-based inference service using NVIDIA GPUs.”
EIS offers consumption-based pricing per million tokens and is available on Serverless and Elastic Cloud Hosted deployments.
$500 Million Buyback Authorized
The board also approved a share repurchase program of up to $500 million with no set expiration date.
Navam Welihinda, CFO of Elastic, said, “Our share repurchase program reflects the Board and management team’s confidence in the strength of Elastic’s business.”
Stock Performance
Over the past year, Elastic's stock is up 2.10%, though it’s down 17.69% so far in 2025. The share price has ranged between $70.15 and $118.84, with a market capitalization of $8.67 billion and an average daily trading volume of about 2.12 million shares.
Benzinga Edge Stock Rankings indicate that ESTC has a negative price trend across all time frames. Track the performance of other players in this segment.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
