Most enterprise software companies experienced a sharp decline in value during the early stages of 2026, as investors worry that artificial intelligence (AI) will eat their lunch. There is a concern that tools like Anthropic's Claude Code will enable businesses to rapidly build their own software tools, reducing their reliance on external vendors. Plus, as AI makes every business more productive, they will have fewer employees and will therefore purchase fewer software licenses. Workiva (NYSE: WK) stock i ...

US Q4 GDP rose +1.4% (q/q annualized), weaker than expectations of +2.8%. The Q4 core PCE price index rose +2.7%, stronger than expectations of +2.6%.Geopolitical risks are bearish for stocks. President Trump on Thursday ramped up pressure on Iran to strike a deal over its nuclear program, saying he thought 10 to 15 days was “pretty much” the “maximum” he would allow for negotiations to continue, and “We’re either going to get a deal, or it’s going to be unfortunate for them.”Stocks initially moved lower on ...

Even without a background in accounting, anyone who has ever glanced at a 10-K or 10-Q can tell that preparing financial statements is a complex, tedious process. While legacy platforms like Workiva and Donnelley Financial Solutions aim to streamline financial reporting, longtime accountants Mary Antony (pictured right) and Kelsey Gootnick (pictured center) found themselves exhausted by various manual hurdles within these tools (co-founder and CTO Jared Tibshraeny is pictured left). The duo met seven ...

Workiva Incorporated (NYSE:WK) is one of the 12 oversold software stocks to invest in. As of the February 16 closing, sentiment around Workiva Incorporated (NYSE:WK) remains highly bullish. The stock received Buy ratings from all 4 analysts covering it. It has a projected median 1-year price target of $109, implying 76% upside. RomarioIen/Shutterstock.com On February 9, Terry Tillman of Truist Securities reaffirmed his Buy rating on Workiva Incorporated (NYSE:WK). He set a $110 price target for the sto ...

The University of Michigan US Feb consumer sentiment index was revised lower by -0.7 to 56.6, weaker than expectations of no change at 57.3.US Dec new home sales fell -1.7% to 745,000, better than expectations of 730,000.The US Feb S&P manufacturing PMI fell -1.2 to 51.2, weaker than expectations of no change at 52.4.The US Dec core PCE price index (the Fed's preferred inflation gauge) rose +0.4% m/m and +3.0% y/y, stronger than expectations of +0.3% m/m and +2.9% y/y.US Dec personal spending rose +0.4% m/m ...

Market Overview - US equity futures are lower as traders assess the potential market impact of war with Iran and await significant US economic data including GDP and core PCE [1] - The S&P and Nasdaq futures are down 0.1% after trading positively overnight, with the "Magnificent Seven" stocks showing mixed performance [3] - Bond yields have reversed and are lower, while the USD remains flat; commodities show mixed results with base metals declining and precious metals, particularly gold, rallying above $5000 [1][11] Company Earnings and Stock Movements - Akamai Technologies (AKAM) shares fell 11% after a weaker-than-expected earnings outlook [3] - Ardelyx (ARDX) dropped 6% due to a softer sales forecast for its Ibsrela drug [3] - Copart (CPRT) fell 8% after reporting operating income that missed analyst estimates [3] - Floor & Decor (FND) rose 4% after exceeding earnings expectations for the fourth quarter [3] - Grail (GRAL) tumbled 47% after its cancer detection test failed to meet primary endpoints [3] - Harmonic (HLIT) increased by 9% due to strong book-to-bill ratios indicating growth potential [3] - Newmont (NEM) dropped 4% as it expects lower gold production this year [3] - Opendoor Technologies (OPEN) surged 19% after reporting better-than-expected revenue [3] - RingCentral (RNG) rose 10% after beating expectations and providing a positive forecast [3] - Texas Roadhouse (TXRH) increased by 4% as it anticipates positive sales growth [3] - Workiva Inc. (WK) gained 12% after reporting strong fourth-quarter results and optimistic forecasts [3] Economic Data and Inflation - Core personal consumption expenditure (PCE) data is expected to show an increase, which may influence interest rate decisions and the economic outlook [4] - Bloomberg Economics anticipates core inflation to accelerate, with a month-on-month increase of 0.32% in the core PCE deflator for December, raising the annual rate to 2.9% from 2.8% [4] - Wider inflation concerns are heightened by oil prices nearing a six-month high amid geopolitical tensions [5][6] Geopolitical Impact - The US military is deploying forces in the Middle East, with President Trump warning Iran of a limited strike if negotiations do not progress [6][35] - Geopolitical tensions have led to a cautious market sentiment, impacting stock performance and investor behavior [6][39]

Industry Overview - The artificial intelligence (AI) boom is creating new opportunities for companies of all sizes, with a focus on those participating in the AI race as they have been a key source of stock market returns in recent years [1] Company: Datadog - Datadog is experiencing high demand for its AI products, which are integrated into its cloud observability technologies that help businesses manage digital infrastructure [3] - The company has launched an AI assistant called Bits AI to enhance workflows and new AI products like LLM Observability to assist developers in tracking costs and troubleshooting issues with large language models [4] - Datadog serves customers who adopt third-party AI models with its OpenAI Monitoring product, which tracks usage, costs, error rates, and response times [5] - As of the end of Q3 2025, Datadog had 32,000 customers, with over 5,000 using AI products, marking a 67% increase year-over-year; AI customers contributed 12% of the company's $881 million total revenue, doubling from 6% the previous year [7] - Datadog's stock is down 31% from its 52-week high, but the upcoming earnings report on February 10 could indicate continued growth in AI customer count and revenue [8] Company: Workiva - Workiva's platform aggregates data from various digital applications, simplifying the reporting process for large organizations [9] - The company launched an AI assistant that helps create reports by turning simple prompts into detailed content, enhancing the reporting experience [10] - The AI assistant is designed to understand context by familiarizing itself with documents within the Workiva platform, making it accessible throughout the ecosystem [11] - Workiva's revenue grew by 21% to $224 million in Q3 2025, driven by an increase in high-spending customers, with businesses spending at least $300,000 and $500,000 annually growing by 41% and 42% respectively [13] - Following a strong Q3 report, Workiva raised its full-year revenue forecast for 2025 to $881 million, with expectations for stock performance to improve if the forecast is exceeded [14]

Group 1: Sea Limited - Sea Limited, often referred to as the "Amazon of Southeast Asia," operates three business units: Shopee, Monee, and Garena, making it a significant player in the digital economy [3][4] - Shopee is the largest e-commerce platform in Southeast Asia, processing 10 billion orders worth $90.6 billion in the first three quarters of 2025 [3] - Sea Limited is projected to grow its revenue by over 30% in 2025, its fastest pace in four years, despite its stock being down 35% from its 52-week high [4] Group 2: Workiva - Workiva provides a platform that integrates with major digital storage, productivity, and accounting applications, allowing organizations to compile reports efficiently [5] - The company is expected to achieve record revenue in 2025 due to growth in its largest customer segments, although its stock is down 20% this year [7] - The majority of analysts covering Workiva rate it as a buy, indicating strong potential for future growth [7] Group 3: Douglas Elliman - Douglas Elliman is the fifth-largest residential real estate brokerage in the U.S., with significant operations in luxury markets [9] - The company sold $30.1 billion worth of real estate in the first three quarters of 2025, on track to exceed its 2024 sales total of $36.4 billion [9] - Despite a 46% increase in stock price in 2025, it remains undervalued compared to its all-time high and rivals, suggesting potential for further growth if interest rates decrease [10][11] Group 4: DigitalOcean - DigitalOcean focuses on providing cloud computing and AI services to small and mid-sized businesses, utilizing GPUs from top suppliers [12][13] - The company's AI-related revenues have more than doubled year over year for five consecutive quarters, indicating strong momentum entering 2026 [14] - DigitalOcean's stock is considered inexpensive, making it an attractive option for investors looking for growth in the AI sector [14]

Core Insights - Eminence Capital increased its stake in Workiva by 1.08 million shares in Q3, raising its total position to 3.72 million shares valued at $320.52 million as of September 30 [2][3][6] - Workiva represents 3.89% of Eminence Capital's reportable U.S. equity AUM, making it the fund's third-largest holding [4][6] - Workiva's stock price is currently $86.28, down 21% over the past year, while the S&P 500 has increased by about 17% [4] Company Overview - Workiva operates in the technology sector, providing a cloud-based platform for compliance, regulatory reporting, data integration, and audit trail solutions [5][8] - The company reported third-quarter revenue of $224 million, a 21% year-over-year increase, driven by a 23% rise in subscription and support revenue [10] - Workiva's non-GAAP operating margin improved to 12.7%, up from 4.1% a year ago, and free cash flow margin reached approximately 20%, compared to 10% one year ago [10] Investment Perspective - Eminence Capital's investment in Workiva appears to be a durability bet on recurring revenue and expanding margins, contrasting with the stock's recent performance [11] - The growth in Workiva's customer base is notable, with a 42% increase in customers spending more than $500,000 annually, indicating strong demand from larger accounts [10][12]

Summary of Key Points Core Viewpoint - Citi has lowered the price target for OpenText (OTEX) to $36 from $38 while maintaining a Neutral rating on the shares, indicating a cautious outlook on the company's performance in the current market environment [1]. Group 1: Company Adjustments - Citi adjusted its models in the application software group after discussions with management, reflecting a need to align expectations with the current market conditions [1]. Group 2: Market Environment - Companies are experiencing a stable but uncertain demand environment, with some positive impact from the reopening of the U.S. government, suggesting a mixed outlook for the sector [1]. Group 3: Investment Picks - Citi has identified Pegasystems (PEGA) as its new top pick, highlighting the company's leadership in artificial intelligence monetization [1]. - Additionally, Citi sees growth opportunities in Blackline (BL) and Workiva (WK), indicating a focus on companies with strong potential in the current market [1].