Core Insights - Alphabet Inc. (NASDAQ:GOOGL) is recognized as one of the top autonomous driving stocks to consider for investment [1] - Recent analyst reports indicate a positive outlook for Alphabet, with price targets being raised by Scotiabank and Mizuho due to strong quarterly performance and optimistic advertising market growth [2][3] Financial Performance - Scotiabank raised its price target for Alphabet from $375 to $400, maintaining an Outperform rating, citing a significant top-line beat in recent quarters [2] - Mizuho also increased its price target for Alphabet from $365 to $400, while expressing optimism about the fundamentals of the online advertising market, anticipating faster growth in 2026 [3] Capital Expenditures and Investments - Alphabet is expected to double its capital expenditures this year, driven by increased investments to address compute capacity limitations and advance in the AI sector [4] - The company and its competitors in the tech industry are projected to spend over $500 billion on artificial intelligence in 2026 [4] Industry Context - Alphabet operates across various sectors including software, healthcare, and transportation, indicating its diversified business model [5] - While Alphabet shows potential as an investment, there are suggestions that other AI stocks may offer greater upside potential with less risk [5]

Core Viewpoint - Freshworks' stock experienced a significant decline of 14.8% following the release of its fourth-quarter results, despite beating sales and earnings expectations, primarily due to weaker forward guidance [1][2][5]. Financial Performance - Freshworks reported non-GAAP earnings per share of $0.14 on revenue of $222.7 million for Q4, exceeding Wall Street's expectations by $0.03 per share and sales by approximately $3.9 million [2]. - Year-over-year revenue growth for Q4 was 14.4%, with per-share earnings consistent with the previous year [2]. Forward Guidance - For the current quarter, Freshworks anticipates revenue between $222 million and $225 million, indicating a year-over-year growth of approximately 13.9% at the midpoint [3]. - For the full year, management projects sales between $952 million and $960 million, reflecting an annual growth of around 14% at the midpoint [4]. - Adjusted earnings per share for the year are expected to be between $0.55 and $0.57, a decline from $0.66 per share last year [4]. Market Sentiment - Despite raising its full-year sales target from previous guidance, the anticipated decline in adjusted earnings per share has led to lower valuation multiples being assigned to Freshworks' stock [5]. - The company's forward guidance has not been strong enough to generate positive investor sentiment, contributing to the stock's valuation contraction [5].

Thoma Bravo co-founder Orlando Bravo on Wednesday said software stocks are "oversold" and the sector is being pulled down by a lack of profits."Most of these 300 publicly traded software companies, they don't have enough profits," he told CNBC's "Money Movers." "They trade as a multiple of revenue, and that's very, very dangerous."Thoma Bravo, a software-focused investment firm founded in 2008, had over $181 billion in assets under management as of September.Bravo said that as artificial intelligence poses ...

Core Insights - Shopify reported strong revenue growth, with revenue rising 31% to $3.67 billion, surpassing the consensus estimate of $3.59 billion [3] - Despite the positive earnings report, the stock experienced a significant decline due to broader fears about AI disruption in the software sector [4] Financial Performance - Revenue increased by 31% to $3.67 billion, and gross merchandise volume (GMV) also rose by 31% to $123.8 billion, marking the fastest GMV growth since 2021 [3] - Adjusted earnings per share were reported at $0.48, slightly below the consensus estimate of $0.51 [3] Market Reaction - Initially, Shopify's stock gained in pre-market trading but fell by 12.1% during regular trading hours due to market sentiment regarding the software sector [1][4] - The stock's reversal from gains to losses is noted as a rare occurrence, with little in the earnings numbers justifying the decline [4] Strategic Outlook - Shopify's President emphasized the company's AI strategy, highlighting partnerships with OpenAI and Google Gemini to enhance AI capabilities for merchants [5] - The company anticipates continued strong growth, targeting low-thirties revenue growth for the first quarter [5] Competitive Position - Shopify is viewed as well-positioned within the e-commerce sector, potentially more insulated from AI disruption compared to other software stocks [6] - Despite the stock's recent decline, the business fundamentals remain strong, and the company is actively pursuing growth through AI initiatives [6]

Core Viewpoint - Unity Software Inc reported fourth quarter 2025 earnings that exceeded Wall Street forecasts, but shares fell over 28% due to a cautious outlook for Q1 2026 [1] Financial Performance - For Q1 2026, Unity projected revenue between $480 million and $490 million, below Wall Street's consensus of $491.8 million, with adjusted EBITDA expected to be between $105 million and $110 million [1] - Fourth quarter revenue was $503.1 million, a 10% increase from $457 million a year earlier, surpassing analysts' estimate of $492.8 million [2] - Create Solutions revenue rose 8% year-over-year to $165 million, driven by subscription growth, while Grow Solutions revenue increased 11% to $338 million, primarily led by Unity Vector [3] Segment Performance - Unity Vector accounted for 56% of the Grow Solutions segment's revenue, contributing to its growth, although this was partially offset by a decline in the IronSource Ad Network [3] - CEO Matt Bromberg highlighted that the fourth quarter results exceeded guidance, driven by strong performance from Vector and the best growth in Create Solutions in over two years [4] Strategic Outlook - Unity aims to become the essential infrastructure for the next generation of interactive entertainment, with rapid growth in Vector and Unity 6 adoption at unprecedented rates [5]

Notably, Saylor continues to be one of the biggest cheerleaders of Bitcoin. On the company's latest earnings call, Saylor stated, “Bitcoin is digital capital. We believe in it.” In a more detailed statement in a previous earnings call, CEO Phong Le also tried to assuage investors by saying, “In the extreme downside, if we were to have a 90% decline in bitcoin price, and the price was $8,000, that is the point at which our bitcoin reserve equals our net debt.” Reportedly, Le elaborated that Bitcoin "would ne ...

Software stocks have gotten off to a rocky start to begin 2026. As of this writing, both the S&P 500 and Nasdaq Composite are essentially breakeven on the year. While that performance may seem mundane, it's held up far better than the software industry. The iShares Expanded Tech-Software ETF has plummeted by 20% so far this year. I'll dig into some of the key factors plaguing software stocks right now. Is this an opportunity to buy the dip, or is the artificial intelligence (AI) software trade a falling ...

Core Insights - Heavy short interest in the market indicates a potential for a near-term rally, despite ongoing long-term concerns regarding artificial intelligence [1] Group 1 - The current market conditions show a significant level of short interest, which could lead to upward price movements in the near future [1] - Prices are stabilizing, suggesting that the market may be reaching a point of equilibrium, which could further support a rally [1] - Long-term fears related to AI continue to persist, indicating that while short-term opportunities may arise, underlying concerns remain [1]

Core Insights - Anthropic's release of 11 new plug-ins for its Claude Cowork AI tool has triggered a significant sell-off in SaaS stocks, resulting in a loss of nearly $1 trillion in market value over six days [2] - Concerns regarding AI disruption have led to sharp declines in shares of companies like Salesforce and Workday, although the panic has since subsided, with industry leaders suggesting that many companies will adapt successfully [3] - JPMorgan has identified CrowdStrike, Palo Alto Networks, and Zscaler as long-term winners in the face of AI-driven cyber threats [8] Company-Specific Insights - CrowdStrike's AI-native Falcon platform is recognized for its resilience against broader software sector fears, with JPMorgan maintaining an Overweight rating on the stock [4] - In fiscal 2026 Q3, CrowdStrike reported $1.35 billion in annual recurring revenue from its Falcon Flex offering, indicating strong customer adoption and high-priority enterprise spending in security operations [5] - Analysts project CrowdStrike's fiscal 2026 revenues to be between $4.797 billion and $4.807 billion, with non-GAAP earnings expected to be $3.70 to $3.72 per share, reflecting a 1.1% increase in earnings estimates over 60 days [6] - CrowdStrike is expected to benefit from AI-enabled efficiencies, high switching costs, and multi-year contracts, with analysts forecasting a 16.8% earnings expansion in 2026 [7] - Palo Alto Networks reported a 16% revenue growth to $2.47 billion in fiscal Q1, with operating margins exceeding 30% for two consecutive quarters [8] - Zscaler's emerging products have surpassed $1 billion in combined annual recurring revenue [8]

Michael Burry sees a cliff. Norway’s sovereign wealth fund sees a runway. While the "Big Short" investor has warned that Palantir Technologies Inc (NASDAQ:PLTR) could fall 58% based on a bearish Head & Shoulders pattern, the Nordic investment behemoth just did the opposite of panic — it went big.Norges Bank Investment Management disclosed a $5.15 billion new stake in Palantir, turning a technical debate into a live battle between chart skeptics and institutional conviction.A $2 Trillion Fund Makes A Top-20 ...