The so-called "software Armageddon" has arrived, and it is not being subtle about it. AI disruption fears have triggered a broad and brutal retreat across the sector, with Anthropic's recent launch of an automation tool for lawyers sending data service and software names tumbling in a single session. Jefferies has gone as far as calling it a "SaaSapocalypse," as growing conviction that frontier AI models from OpenAI and Anthropic could eventually replace entire categories of enterprise software fuels an ...

Group 1: MongoDB - MongoDB has shown significant growth in its cloud database services, with a reported revenue increase of 50% year-over-year, reaching $300 million in the last quarter [1] - The company continues to expand its customer base, adding over 1,000 new customers in the last quarter, bringing the total to over 40,000 [1] - MongoDB's focus on enhancing its product offerings, including new features for data analytics and machine learning, is expected to drive further adoption [1] Group 2: Cloudflare Inc - Cloudflare Inc reported a revenue increase of 47% year-over-year, totaling $250 million for the last quarter [1] - The company has successfully expanded its global network, now serving over 30 million internet properties, which enhances its market position [1] - Cloudflare's investment in security features has attracted a diverse range of clients, contributing to its strong growth trajectory [1] Group 3: Applovin Corp - Applovin Corp experienced a revenue growth of 35% year-over-year, reaching $200 million in the last quarter [1] - The company is focusing on expanding its advertising platform, which has seen increased demand from mobile app developers [1] - Applovin's strategic partnerships with major gaming companies are expected to enhance its market share and revenue potential [1]

Core Insights - ServiceNow's product expansion is accelerating, leading to measurable growth and reinforcing the case for continued upside [1] - Major fourth-quarter growth drivers include Now Assist, Workflow Data Fabric, Raptor, and CPQ, which have outperformed expectations and gained widespread adoption in large enterprise deals [1][2] Product Expansion and Adoption - Growing attach rates and multi-product adoption are enhancing ServiceNow's expansion, with Workflow Data Fabric included in most large deals and Raptor achieving triple-digit growth in new contract value [2] - Now Assist has surpassed $600 million in annual contract value, indicating strong AI monetization and faster multi-module deployments as customers scale AI for productivity and cost efficiency [2] Enterprise Deal Activity - The product-led momentum is translating into stronger enterprise deal activity, with major contract wins and a rising base of high-value customers [3] - The Zacks Consensus Estimate forecasts revenue growth of over 20% in 2026, supporting a favorable outlook for ServiceNow [3] Competitive Landscape - ServiceNow faces competition from Salesforce and Atlassian in its product expansion efforts [4] - Salesforce is extending its Agentforce into IT service and workflow automation, challenging traditional workflow tools with a unified data platform and embedded AI [5] - Atlassian is accelerating its product expansion with an AI-powered "system of work," integrating various tools and extending service capabilities into HR and finance [6] Financial Performance and Valuation - ServiceNow shares have declined 45.8% over the past year, underperforming the broader Zacks Computer and Technology sector, which returned 23.7% [7] - The forward 12-month price/sales ratio for ServiceNow is 6.84X, compared to the sector's 6.54X, indicating that the stock may be overvalued [11] - The Zacks Consensus Estimate for ServiceNow's 2026 earnings is $4.12 per share, reflecting a 17.38% year-over-year increase [14]

Software ETF IGV is fresh off its worst month since the 2008 Financial CrisisLast month, the iShares Expanded Tech-Software Sector ETF (BATS:IGV) officially entered bear market territory. The ETF has suffered amid fears that AI will disrupt business models across the sector, with a dismal post-earnings bear gap from Microsoft (MSFT) -- the fund's top holding -- adding fuel to the fire.IGV is down 3.2% to trade at $82.67 today, and last Thursday traded as low as $81.53, a chip shot from its April 7 low of $8 ...

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 ...