Time to Buy These Up-and-Coming Software Firms?

Industry Overview - The software segment of the tech industry has seen a significant increase, with the iShares Expanded Tech-Software Sector ETF (BATS: IGV) rising nearly 38% over the past year, including a substantial portion of that growth occurring from mid-October to mid-November [1][2] Company Analysis: MongoDB - MongoDB Inc. (NASDAQ: MDB) specializes in software platforms for data storage and analysis, with its cloud-based database-as-a-service tool, MongoDB Atlas, contributing over 70% of the company's $478 million revenue for the fiscal year [3][4] - For Q2 of its 2025 fiscal year, MongoDB reported a 13% year-over-year revenue increase, although net losses widened slightly to $54.5 million, while maintaining a strong cash position of $2.3 billion [4] - The NoSQL database industry, where MongoDB operates, is projected to exceed $82 billion by 2031, although MongoDB faces competition from larger rivals like Amazon's DynamoDB [5] - MongoDB has a "moderate buy" rating, with 20 out of 26 analysts recommending purchase, and a consensus price target of $334.25, indicating a potential upside of 14.1% from current levels [6] Company Analysis: Check Point Software - Check Point Software Technologies Ltd. (NASDAQ: CHKP) reported a 7% overall revenue growth to $635 million, with a 12% increase in subscription revenue year-over-year, despite some deals being postponed to the next quarter [7][8] - The company maintains a revenue guidance of $2.5 billion for the year and a net profit exceeding $1 billion, with a gross margin of 89% [8] - Following its earnings announcement, Check Point's shares fell, attributed to results that did not significantly exceed expectations, despite a recent downgrade by Bank of America to "neutral" from "buy" [9][10] Company Analysis: Tyler Technologies - Tyler Technologies Inc. (NYSE: TYL) provides software and services to public sector organizations, achieving nearly 10% year-over-year revenue growth, driven by increased demand for its SaaS offerings [14] - Transaction revenues grew over 15%, indicating successful implementation of its cloud-based strategy, although the company has reduced its expected free cash margin and slightly lowered its full-year revenue guidance [15]