Core Viewpoint - The tech sector is experiencing a shift as investors are increasingly focusing on small and midcap stocks, moving away from mega cap tech dominance, driven by underallocation, reasonable valuations, and better growth prospects in smaller companies [1][2][3][5]. Group 1: Market Dynamics - There is a notable underallocation to small and midcap stocks, currently at about 3% of the Russell 3000, compared to a typical allocation of 7.5% [3]. - The Russell 2500 growth index is trading at approximately 21.5 times earnings, which is below the S&P 500's typical range of 15 to 17 times over the past 20 years [4]. - Small cap stocks are projected to grow at a forward sales rate of about 16%, compared to 11% for the S&P 500, indicating a potential for better growth in smaller companies [5][6]. Group 2: Economic Environment - The current economic environment, characterized by low inflation and potential GDP growth of around 5%, is favorable for small cap stocks [6][7]. - Increased productivity is helping to keep wage-push inflation down, and tariffs have not significantly impacted the market [8]. Group 3: Sector Performance - Investment is shifting from software to hardware and semiconductor sectors, particularly benefiting companies involved in AI data center buildouts, with capital expenditures expected to rise from $200 billion in 2024 to $650 billion in 2025 [11][12]. - Software companies are facing challenges, with an average decline of 20% year-to-date and a 40% drop in small cap software over the past year [12][13]. Group 4: Investment Opportunities - Companies like Data Dog and Dinatrace are highlighted as strong investments due to their embedded roles in network infrastructure and high free cash flow growth [15][16]. - In healthcare, companies like Tempest AI are leveraging AI for cancer diagnostics, creating unique databases that enhance drug development [21][22]. Group 5: Broader Market Implications - A broadening market, with increased investment in small and midcap stocks, is seen as healthy for the overall economy, potentially benefiting consumer spending [30][31]. - The disconnect in valuations between small and large cap stocks is historically significant, suggesting potential for growth in the small cap sector [32].

Core Viewpoint - Applovin Corp's stock has shown a significant increase following the retraction of negative statements by short seller CapitalWatch, with expectations for strong earnings in the upcoming report [1][2]. Group 1: Stock Performance - Applovin's stock rose by 1.9% to $469.19, building on a previous 13.2% increase [1]. - The stock has a history of positive post-earnings performance, finishing higher after all eight of its last earnings reports, with an average increase of 18.5% [2]. - Currently, the stock is down 29.9% in 2026 but has gained 15.5% this week [3]. Group 2: Earnings Expectations - Analysts expect earnings of $2.89 per share for the upcoming quarter, representing a year-over-year increase of 67.05% [2]. - The options market is pricing in a 21.9% swing for this earnings report, indicating high volatility expectations [2]. Group 3: Short Interest - Short interest in Applovin's stock is at 5.8% of the available float, suggesting a potential for short covering, which would take over three days at the current trading pace [3].

Core Viewpoint - Figma Inc shares are experiencing a surge due to a rebound in software stocks, driven by a positive outlook from JPMorgan strategists who believe the sector is poised for recovery after recent volatility related to AI advancements [1][2] Group 1: Market Sentiment and Analyst Opinions - JPMorgan's strategists argue that the recent selloff in software stocks, driven by fears of AI disruption, has been excessive and has created investment opportunities in high-quality software companies [1] - The market is currently pricing in worst-case scenarios regarding AI disruption that are unlikely to occur in the near term, leading to a favorable risk-reward balance for a potential rebound [2] - Morgan Stanley supports this optimistic view, highlighting strong revenue expectations and improving earnings revisions, suggesting that the dislocation in U.S. software valuations is sentiment-driven rather than based on fundamentals [3] Group 2: Sector Performance and Company Highlights - Datadog Inc's strong fourth-quarter earnings have positively impacted the software sector, reporting earnings of 59 cents per share, significantly exceeding expectations, along with a year-over-year revenue increase of $215 million [4] - Datadog's positive fiscal guidance for 2026, projecting earnings between $2.08 and $2.16 per share, further adds momentum to the sector [4] Group 3: Figma Stock Performance - Figma shares rose by 12.34% to $24.86, approaching its 52-week low of $18.41, indicating a significant recovery potential in the current market environment [5]

Paycom Software, Inc. (NYSE:PAYC) is included in our list of the 14 oversold value stocks to invest in right now. Guggenheim Bullish on Paycom Software (PAYC) Despite Weak Share Price Performance On February 3, 2026, Paycom Software, Inc. (NYSE:PAYC) traded at its 52-week low of $124.08, down significantly from its 52-week high of $267.76. Currently trading at $131.41, the stock is just 7% above its 52-week low. Amid weak investor momentum, Paycom Software, Inc. (NYSE:PAYC) received Guggenheim’s attenti ...

Group 1 - Waystar Holding Corp. (NASDAQ:WAY) is identified as one of the 14 oversold value stocks to invest in currently [1] - Analyst sentiment remains bullish, with a consensus price target of $46.00, indicating a potential upside of 91.70% [2] - Leerink initiated coverage on Waystar with an 'Outperform' rating and a price target of $43, highlighting the company's market reach and growth opportunities, particularly following the Iodine acquisition and advancements in AI capabilities [3] Group 2 - Investor sentiment is cautiously optimistic, despite the stock reaching a 52-week low of $28.08 on January 28, 2026, and a year-over-year decline of 30.68% [4] - Waystar provides cloud-based software solutions for healthcare organizations, aimed at streamlining payments and improving reimbursement processes [5] - The company's broad market reach and technology-led expansion are seen as key factors that could bridge the gap between current market valuation and potential growth [4]

Core Insights - DocuSign, Inc. (NASDAQ:DOCU) is currently identified as one of the 14 oversold value stocks to consider for investment [1] - The company has faced significant challenges over the past year, with a 52% decline in stock price, reaching a 52-week low of $51.63 on February 2 [2] - Despite the weak broader market momentum, DocuSign continues to innovate and enhance its offerings [2] Product Innovations - On January 13, 2026, DocuSign introduced AI-powered eSignature enhancements through its Intelligent Agreement Management (IAM) platform, aimed at simplifying legal language, reducing document preparation errors, and speeding up agreement completion [3] - The new AI tool, Iris, provides contract-specific summaries, answers signer questions, and automates signature field placement, addressing common issues of confusion and hesitation among signers [3] - These updates are currently available in the U.S., U.K., and Australia, with plans for additional automated agreement creation tools to be rolled out in the U.S. [3] Market Positioning - As enterprises increasingly adopt digital solutions, DocuSign is positioning itself to regain momentum by tackling persistent workflow inefficiencies [4] - The company offers cloud-based electronic solutions and workflow automation tools, facilitating secure contract execution, data management, and document collaboration for individuals and enterprises globally [4]

The Stock Market Is Finally Broadening Out. The S&P 500 Will Suffer. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# The Stock Market Is Finally Broadening Out. The S&P 500 Will Suffer.By [Martin Baccardax]ShareResize---ReprintsIn this arti ...

Core Insights - Datadog, Inc. reported fourth-quarter earnings that exceeded analyst expectations, resulting in a more than 13% increase in shares during premarket trading [1] - The company posted adjusted earnings per share of $0.59, surpassing the analyst estimate of $0.55, while revenue grew 29% year over year to $953 million, exceeding the consensus forecast of $917.01 million [1] Customer Growth - Customer growth remained strong, with 603 customers generating annual recurring revenue of $1 million or more, representing a 31% increase from 462 customers a year earlier [2] Future Guidance - For the first quarter, Datadog guided revenue between $951 million and $961 million, exceeding analyst expectations of $935 million, although the adjusted EPS guidance of $0.49 to $0.51 fell short of the $0.54 consensus estimate [2] - For fiscal year 2026, the company projected revenue of $4.06 billion to $4.10 billion, slightly below the analyst consensus of $4.11 billion, and forecast adjusted EPS of $2.08 to $2.16, compared to expectations of $2.41 [3]

Adobe Inc. ( ADBE ) is still feeling the investor burn despite a slight rebound from its 52-week lows in the low $260/share range. The declines have come in the wake of a reckoningAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no bu ...

Adobe Inc. ( ADBE ) is still feeling the investor burn despite a slight rebound from its 52-week lows in the low $260/share range. The declines have come in the wake of a reckoningAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no bu ...