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.
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Veeva’s daily chart revealed a textbook five-wave impulse pattern, marked I-II-III-IV-V. Two lower degrees of the trend were also visible within the structure of wave III. According to the theory, a three-wave correction follows every impulse. Unfortunately for the bulls, the crash from $344 to $152 per share looked like a single wave, not three. So it made sense to expect more weakness in wave C once the corrective recovery in wave B was over. Nearly four years later now, the following updated chart shows how the situation unfolded.
Wave B helped Veeva Systems stock exceed the $300 mark again in October, 2025. It didn’t not cross the starting point of wave A, however, and turned out to be the perfect bull trap. By early-April, 2026, wave C had erased more than 50% of the company’s valuation, dragging the share price under the $150 mark for the first time since Covid struck in 2020.
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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.
