MicroStrategy (MSTR) has had a bruising week as a leverage flush sent Bitcoin (BTCUSD) tumbling to a multi-year low of $60,000, dragging the stock down with it. An alarming fourth-quarter net loss of $12.4 billion, driven by mark-to-market accounting on its massive digital hoard, spooked short-term traders in recent sessions. More News from Barchart At the time of writing, MicroStrategy stock is down more than 25% versus its year-to-date high. www.barchart.com MicroStrategy Stock Is Trading at a Disc ...

Group 1 - The software stock downturn of 2026 may be indicative of a larger trend, similar to the impact of the internet on the newspaper industry in the early 2000s [1][2] - Historical examples show that share price stability in industries facing disruption requires stable earnings outlooks, as seen with newspapers which experienced a 95% decline in share prices from 2002 to 2009 [2] - The decline in newspaper stocks ended when earnings estimates bottomed, and the uncertainty surrounding AI's impact on software companies suggests that near-term earnings will be critical indicators of business resilience [3] Group 2 - Major software companies like Salesforce, Workday, and SAP are perceived to have their terminal values threatened by advancements in AI [4] - The recent debut of AI developer Anthropic and its automation capabilities has contributed to a significant decline in shares of various software companies, with no clear positive catalysts emerging to attract investors [8] - Software stocks are underperforming the Nasdaq Composite by the largest margin this century, with notable declines including 27% for Oracle and Salesforce, and a 41% drop for Figma [9] Group 3 - The software sector typically outperforms the S&P once it finds a bottom, but the extent of the current downturn remains uncertain, with no immediate solutions to shift investor sentiment [10]

Oracle Stock Nabs Upgrade To Buy. Here's Why. | Investor's Business DailyBREAKING: [Stocks Open Tightly Mixed As Oracle Soars, Intel Stumbles]---Oracle (ORCL) stock was upgraded to a buy rating from analysts at DA Davidson on Monday, who are increasingly positive on a "revamped" OpenAI and see Oracle shares as more properly valued following a sharp selloff. "In the past we had been very critical of Oracle and OpenAI, but believe the market is now more appropriately reflecting the risks involved,…## Related ...

Volatility has increased for artificial intelligence stocks in early 2026 as investors scrutinize capital spending hikes by hyperscalers Amazon.com (AMZN), Google-parent Alphabet (GOOGL) and Meta Platforms (META). While software stocks have been hammered, even Palantir Technologies (PLTR), optical networking plays Lumentum (LITE) and Ciena (CIEN) remain bright spots. Looking ahead, Nvidia's (NVDA) earnings report on Feb. 25 could bring more… ...

Market Overview - U.S. stock futures indicate a mixed to slightly lower open as investors digest a volatile end to the previous week and anticipate crucial economic data releases [1] - Major U.S. index futures show slight downward pressure, with Nasdaq 100 futures down approximately 0.5%, S&P 500 futures down around 0.3%, and Dow Jones Industrial Average futures indicating a 0.1% decline [2] - The broader market sentiment is influenced by a rotation out of technology and software stocks into more cyclical and "old economy" sectors due to concerns over AI disruption [3] Upcoming Economic Data - The delayed January jobs report is expected to show a gain of approximately 55,000 jobs, while the January Consumer Price Index (CPI) report will provide crucial information regarding inflation trends [4] Corporate Earnings Reports - Major companies set to release earnings reports include Coca-Cola, Datadog, Ford Motor, Robinhood, Lyft, McDonald's, CVS Health, Shopify, Coinbase, Rivian, and Pinterest [5] Individual Stock Movements - Eli Lilly shares surged over 2% following the announcement of a definitive agreement to acquire Orna Therapeutics for up to $2.4 billion [6] - Kroger stock advanced around 5% after reports of naming former Walmart executive Greg Foran as its new CEO [6] - Novo Nordisk shares rose over 7% after Hims & Hers Health announced it would stop offering a copycat version of Wegovy, leading to a significant drop in Hims & Hers stock [6] - Transocean announced it will acquire Valaris in an all-stock deal valued at $5.8 billion, with Transocean shares down 4% and Valaris shares up 14.6% in premarket trading [6] Commodities and Bonds - Gold futures are slightly higher, trading just above $5,000 an ounce, while Silver futures are up 3% to about $79.50 an ounce [7] - West Texas Intermediate (WTI) crude futures increased to $63.65 a barrel, and the yield on the 10-year Treasury note rose to nearly 4.24% [7] Notable Stock News - Nvidia and Caterpillar saw significant gains of 8% and 7% respectively on Friday, but both are pointing lower in premarket trading [10] - Amazon stock declined over 5.5% on Friday and is down another 0.4% in premarket [10] - Dynatrace surged over 13% in premarket trading ahead of its earnings report [10] - U.S.-listed shares of STMicroelectronics jumped 6.5% on news of an expanded partnership with Amazon Web Services [10] - Cryptocurrency-tied stocks such as MARA Holdings, MicroStrategy, and Coinbase are down between 2.5% and 5% in premarket after a volatile weekend for Bitcoin [10]

Financial Data and Key Metrics Changes - Dynatrace achieved a total revenue of $515 million in Q3, with subscription revenue at $493 million, both reflecting a 16% year-over-year growth, exceeding guidance by 150 basis points [33][39] - The company reported an ARR of $1.97 billion, representing a 16% growth, marking three consecutive quarters of stabilization in ARR growth [30][38] - Non-GAAP net income was $135 million, or $0.44 per diluted share, which was $0.02 above the high end of guidance [35] Business Line Data and Key Metrics Changes - The log management solution surpassed $100 million in annualized consumption, growing over 100% year-over-year, making it the fastest-growing product category [33][50] - The average ARR per new logo was over $160,000, with the average land size exceeding $200,000, indicating strong demand for the platform [31][32] - The gross retention rate remained in the mid-90s, while the net retention rate was 111%, consistent with previous quarters [32] Market Data and Key Metrics Changes - The AI market is projected to grow from less than $200 billion in 2023 to nearly $5 trillion in the next seven years, indicating a significant opportunity for Dynatrace [8] - Hyperscaler growth is approaching $300 billion in annualized revenue, growing in the high 20s, which presents challenges for customers that Dynatrace aims to address [9] Company Strategy and Development Direction - Dynatrace is focusing on end-to-end observability as a foundational element for AI-driven operations, emphasizing the importance of integrating various data sources [43][64] - The company announced Dynatrace Intelligence, an agentic operations system designed for modern software ecosystems, which will enhance its observability capabilities [17][18] - The strategy includes deeper technical engagements with major hyperscalers and the acquisition of DevCycle to enhance feature management for AI-native applications [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for observability solutions, driven by trends in cloud modernization and AI workload proliferation [37][38] - The company raised its full-year guidance for ARR growth to a range of 15.5%-16%, expecting to surpass $2 billion in ARR [38][39] - Management highlighted the importance of observability in an AI-first world, stating that it is essential for trusted insights and automation [21][64] Other Important Information - The board authorized a new $1 billion share repurchase program, doubling the size of the previous program, reflecting confidence in the business [37] - Dynatrace is actively investing in R&D while returning capital to shareholders, indicating a balanced approach to growth and shareholder value [36][37] Q&A Session Summary Question: Client engagement levels regarding automation and data integration - Management noted strong momentum in end-to-end observability as customers seek to consolidate tools and improve outcomes [43] Question: Pace of change in AI-driven incident management - Management indicated that while there is apprehension about AI adoption, end-to-end observability is becoming foundational for AI-driven actions [46][48] Question: Growth in log monitoring consumption - Management confirmed that log consumption is growing over 100% and is expected to be a significant source of new ARR [50][52] Question: New logo growth and market expansion - Management expects a near-term mix of one-third new logos and two-thirds expansions, emphasizing ongoing opportunities within the existing customer base [74] Question: Competitive environment and risks from larger language models - Management believes that Dynatrace's comprehensive platform and architectural advantages position it well against competition, including potential threats from LLMs [81][84]

Financial Data and Key Metrics Changes - Dynatrace achieved a total revenue of $515 million in Q3, representing a 16% year-over-year growth, exceeding guidance by 150 basis points [33] - Subscription revenue was $493 million, also up 16% year-over-year [33] - Annual Recurring Revenue (ARR) ended at $1.97 billion, reflecting a 16% growth and stabilization of ARR growth for three consecutive quarters [30] - Net new ARR for Q3 was $75 million, adjusted for foreign exchange, marking an 11% increase from the previous year [30] - Non-GAAP operating margin was 30%, exceeding guidance by nearly 100 basis points [34] - Non-GAAP net income was $135 million, or $0.44 per diluted share, surpassing guidance by $0.02 [35] - Free cash flow for Q3 was $27 million, with a trailing 12-month free cash flow of $463 million, representing 24% of revenue [35] Business Line Data and Key Metrics Changes - Log Management surpassed $100 million in annualized consumption, growing over 100% year-over-year, making it the fastest-growing product category [33][52] - The average ARR per customer is now nearly $500,000, indicating strong adoption of the platform [32] - The average ARR per new logo was over $160,000, with 164 new logos added in Q3 [31] Market Data and Key Metrics Changes - The AI market is projected to grow from less than $200 billion in 2023 to nearly $5 trillion in the next seven years, indicating significant market potential for observability solutions [8] - Hyperscaler growth is approaching $300 billion in annualized revenue, growing in the high 20s, which presents both opportunities and challenges for customers [9] Company Strategy and Development Direction - Dynatrace is focusing on end-to-end observability as a foundational element for AI-driven operations, emphasizing the importance of integrating various data sources [43][64] - The company announced Dynatrace Intelligence, an agentic operations system designed for modern software ecosystems, which will enhance AI-powered observability [17][18] - The strategy includes deeper technical engagements with major hyperscalers and the acquisition of DevCycle to enhance feature management capabilities [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for observability solutions, driven by trends in cloud modernization and AI workload proliferation [38] - The board authorized a new $1 billion share repurchase program, reflecting confidence in the business and belief that shares are undervalued [37] - The company raised its full-year guidance for ARR growth to a range of 15.5%-16%, expecting to surpass $2 billion in ARR [39] Other Important Information - The company hosted its annual customer conference, PERFORM 2026, which highlighted advancements in the Dynatrace platform and customer success stories [7][22] - Dynatrace is investing in partnerships and collaborations, particularly with ServiceNow, to enhance autonomous IT operations [24] Q&A Session Summary Question: Client engagement and automation story - Management noted strong momentum in end-to-end observability as clients seek to consolidate tools and improve outcomes [43] Question: Pace of change in AI and observability - Management indicated that while there is apprehension about AI adoption, end-to-end observability is becoming essential for driving AI outcomes [46] Question: Log monitoring consumption growth - Management confirmed that log consumption is growing over 100% and is expected to be a significant source of new ARR [50][52] Question: New logo growth and market expansion - Management expressed confidence in new logo momentum, expecting a mix of one-third new logos and two-thirds expansions in the near term [74] Question: Competitive environment and AI risks - Management believes that Dynatrace's comprehensive platform differentiates it from smaller competitors and that observability is essential for AI-driven operations [81][84]

Like many software companies, shares of Workday ( WDAY ) have been pummeled - the stock has declined 25% year-to-date (and it is only February!), is down 41% over the past year, and is down 48% from its all-time high in early 2024. IAnalyst’s Disclosure: I/we have a beneficial long position in the shares of WDAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). ...

Core Viewpoint - Workday's stock has experienced significant declines, with a 25% drop year-to-date, a 41% decrease over the past year, and a 48% fall from its all-time high in early 2024 [1] Group 1 - Workday's shares have been negatively impacted like many software companies [1] - The stock is currently down 25% year-to-date and 41% over the past year [1] - The decline from its all-time high in early 2024 is 48% [1]

Core Insights - eGain Corporation has partnered with Cabinetworks Group to implement its AI Knowledge Hub and AI Agent for Contact Center, aimed at modernizing Cabinetworks' knowledge management and enhancing customer service operations [1][4]. Company Overview - Cabinetworks Group is the largest privately held kitchen cabinet manufacturer in the United States, featuring iconic brands such as KraftMaid, Medallion, Merillat, and Smart Cabinetry [2][8]. - The company operates over 20 locations, including 15 manufacturing facilities, and employs more than 5,000 team members [8]. Challenges Faced - Cabinetworks identified the need to modernize its customer service approach due to operating across multiple legacy systems, recognizing that AI would be essential for supporting its growth strategy [3]. - The company aimed to transition from outdated document management tools to a best-in-class knowledge management system to improve efficiency and accuracy in responding to customer inquiries [3]. Solution Implementation - The partnership with eGain will replace fragmented information sources with a unified AI Knowledge Hub, providing intelligent search, content lifecycle controls, and analytics [4]. - The implementation includes an AI Agent for Contact Center, which offers contextual assistance to agents, and integrates with Five9 and Salesforce CRM for a seamless user experience [4][6]. - A self-service portal will be established, allowing customers to find answers independently, thereby improving overall efficiency [4][6]. Operational Impact - The unified knowledge foundation will enable real-time access to information, enhancing the speed and quality of service provided to customers [5]. - Agents will have immediate access to up-to-date information across various brands, improving their effectiveness in handling customer inquiries [6]. Executive Insights - Matt Conant, VP of Customer Experience and Care at Cabinetworks, emphasized the importance of modernizing knowledge management to scale operations and improve service quality [7]. - Ashu Roy, CEO of eGain, highlighted the unique knowledge challenges faced by manufacturers and the role of the AI Knowledge Hub in delivering real-time support [7].