Agentic System Evolution - The industry views agentic systems as a natural evolution of AI software, which itself is a natural evolution of traditional software [1] - Agentic systems can lead to dramatically simpler code and logic compared to previous generations of software, despite being more powerful and capable of more sophisticated tasks [2] Complexity Assessment - The industry suggests that evaluating agentic systems is not necessarily more complex than evaluating traditional software or single-shot LLM outputs [1] - The resulting agentic systems built by sophisticated customers are often simpler than their predecessors [2]

This Startup Hit A $3.25 Billion Valuation Building Software To Fix Drug Pricinghttps://t.co/OqK5Yd7WE1 https://t.co/eBccIgcbgG ...

Human labor is generally like an order of magnitude larger than software spend like 10x or more. Of course, you're not going to capture all of that, but when you're kind of bringing in software, if you can give them like a 3x to 5x ROI, that's very compelling. What that translates to is like, you know, roughly 3x multiple on the value you're able to capture there.And so, if you look at a lot of our customers, for example, they're spending more on the AI agent than the previous sort of CRM software or suppor ...

Openoro is a software company that happens to have some assets. I think there's an asset light model here that could work incredibly well. There's asset heavy model that can work incredibly well and will have like literally all of them.You must judge companies based on where leverage comes from. The leverage from open door will come from software. We will build excellent software for buyers and sellers of home and owners of homes and we will attach services to those products. ...

Market Debut & Company Overview - Via Transportation, a transportation software company, is making its public debut after pricing above the expected range [1] - The company transitioned from a ride-sharing service in New York City to providing software solutions for municipalities [2] Total Addressable Market (TAM) - The total addressable market is estimated to be over $500 billion globally [3] - In the United States, Canada, and Western Europe, the addressable market is estimated at approximately $80 billion [3] Revenue Growth - Revenues increased significantly from $100 million in 2021 to $337 million last year [5] - The company has a run rate of approximately $400 million this year [5] Value Proposition for Municipalities - Via aims to improve public transportation systems by replacing underutilized buses with dynamically routed shuttles [4] - The company aims to double, triple, or quintuple ridership through its services [4] - Via offers solutions that allow cities to maintain or even increase critical services with potentially lower budgets [10] Key Strategies & Differentiators - Via leverages data collected over a decade to provide value to customers [6][7] - The company's technology is considered unique and has been developed over a decade [6] Challenges & Opportunities - Changing established operational methods in public transit can be difficult [3] - Public transit budgets are generally not being cut, as public transit is a growth driver [9] - Demographic shifts, such as population growth in cities like Sioux Falls, South Dakota, create opportunities for new transportation solutions [8]

Market Outlook & Fed Policy - The market anticipates a Fed cutting cycle, suggesting a broadening out trade with legs through the end of the year if more cuts occur [2] - Investors should monitor the Fed's summary of economic projections for year-end expectations [2] - The market may react negatively if the Fed signals weakness, especially if hoping for a 50 basis points cut next week [8] - A 25 basis points cut is expected, with increments of 25 unless data deteriorates significantly, with focus on the labor market [5] - The Fed's unemployment rate target is 45%, allowing room for the labor market to cool further [6][7] - The market prefers the Fed to cut due to data alignment with its dual mandate, not out of concern for weakness [9] Investment Strategy - Diversify growth and momentum exposure, considering small caps via equal-weighted S&P exposure [1][3] - Sectors like healthcare, financials, and energy are attractive at current levels [3] - Software companies are the next conduit for AI, presenting buying opportunities on dips due to high valuations [11][12] - AI investment opportunities extend beyond semiconductors, with a long runway in other sectors [12]

Inflation & Monetary Policy - The market is shifting focus from inflation reports to jobs reports, with the expectation that inflation numbers are decreasing [1][2] - The company's internal CPI measure was almost 100 basis points (1%) below the actual number last month, indicating housing and shelter as key drivers [2] - While a 25 basis point rate hike is expected, a 50 basis point hike could be justified, although only 10% of the market forecasts this [3] - The company believes underlying inflation trends are improving and the Fed should look past tariff-induced noise [6] AI & Tech Sector - The AI trade is considered to be in its early stages, potentially the "third inning," with software identified as the next area for growth [9][10] - The company is a strong believer in the long-term impact of AI on the economy, markets, and stocks, anticipating broader participation beyond chip stocks [10] - A key focus is on mega-cap tech, especially after Oracle's strong results, suggesting AI-focused names are still attractive [7][8] European Markets - Despite political turmoil in France and rising tensions in the Middle East, Europe remains an attractive investment opportunity [11][12] - The company favors European defense and infrastructure investments as a "next decade trade" due to supportive valuations [13][14] - The company recommends focusing on specific sectors like defense (e g BA Systems) and infrastructure investment within the broader European economy [14] Investment Strategy - The company suggests a Wisdom Tree ETF (WTV) focused on high dividend and buyback yields, offering a close to 7% shareholder yield [14][15] - This ETF targets companies that believe their stocks are cheap and are buying back approximately 5% of their shares outstanding [15] - The dividend/buyback strategy is seen as a way to participate in the AI story's diffusion through the economy, targeting companies that will utilize AI and consider their stocks undervalued [16]

Industry Focus - The software industry highlights the success of a refugee who amassed billions [1] Personal Resilience - The individual, arriving in London in 1939 after escaping Germany, was determined to live a meaningful life [1]

Joining us now RBC capital markets analyst Rishi Galoria. Uh Rishi, it's great to have you on. First, set this up with why MongoDB in particular and some related software companies have been under so much pressure and why the street thinks some of that pressure is coming off now.Yeah, absolutely. And thanks so much for having me. Look, the uh story over the past I would say 6 weeks has been is software dead is you know the ability to build applications using uh GPT5 or some of these platforms like lovable m ...

IPO Market Trends - The IPO market is recovering, with companies pricing conservatively to ensure successful launches [4] - There's significant pent-up demand for IPOs, particularly in sectors like defense tech, AI, and crypto [4][5] - In 2025, two IPOs (Figma and Circle) have seen gains exceeding 150% on the first day of trading, highlighting concentrated demand in specific sectors [4][5] M&A Activity - M&A activity appears robust, with a temporary slowdown in April due to uncertainty, followed by a resurgence in June, July, and August [6] - In 2025, there have been 38 M&A deals valued over $10 billion, marking a record high at this point in the year [1] - The market has adjusted, and deal pipelines are building, leading to recent announcements [6] Technology Sector Dealmaking - Large tech companies are increasingly engaging in "lift transactions," which involve licensing IP, founders, and talent, rather than traditional M&A deals [9][10] - Meta's investment in Scale AI at a $29 billion valuation exemplifies this trend [2] - Seven such deals have occurred in the past couple of months, indicating a shift in strategy [10]