Core Viewpoint - The emergence of Generative AI is expected to impact software margins, yet the market has reacted negatively towards Microsoft (MSFT) stock despite its strong position in the software industry [1]. Group 1: Company Analysis - Microsoft has a significant software business and is anticipated to be a long-term winner in this sector [1]. - The company is viewed as undervalued, with potential for appreciation over time due to its strong balance sheet and management [1]. Group 2: Market Context - The market's current punishment of MSFT stock contrasts with its long-term growth potential in the software space [1].

Blackbaud Ticker: BLKB February 10, 2026 Forward-looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation consist of, among other things, statements regarding future operating results, all of which are based on current expectations, estimates, and forecasts, and the beliefs and assumptions of the Compa ...

Group 1 - Spotify and Datadog saw pre-market gains exceeding 10% [1] - Shopify increased by nearly 5% [1] - Unity experienced a rise of over 4% [1] - Applovin and Snowflake both rose by nearly 4% [1] - Palantir gained over 2% [1]

Core Viewpoint - Datadog, Inc. has provided its adjusted earnings and revenue guidance for Q1 and full-year 2026, indicating a positive outlook for the company’s financial performance [1][2]. Group 1: Q1 Financial Guidance - For the first quarter, Datadog expects adjusted earnings between $0.49 and $0.51 per share, with revenues projected between $951 million and $961 million [1]. - Analysts' average expectations for the quarter are earnings of $0.52 per share on revenues of $934.08 million [2]. Group 2: Full-Year 2026 Financial Guidance - For fiscal 2026, Datadog projects adjusted earnings in the range of $2.08 to $2.16 per share, with revenues expected between $4.06 billion and $4.10 billion [2]. - The consensus among analysts is for earnings of $2.34 per share on revenues of $4.10 billion for the year [2]. Group 3: Market Performance - In pre-market trading, Datadog's stock is priced at $124.99, reflecting an increase of $10.98 or 9.63 percent [3].

Core Viewpoint - Paylocity (PCTY) is a cloud payroll and human capital management (HCM) software provider based in the US, with a history of coverage since 2020 [1]. Group 1 - Paylocity has been followed for multiple years, indicating a sustained interest in its performance and market position [1].

The software company breezes past earnings and revenue expectations for the fourth quarter. ...

Group 1 - The U.S. has issued an advisory for American-flagged commercial vessels to avoid Iranian waters in the Strait of Hormuz [2] - Alphabet is planning to raise significant funds from the bond market to support its artificial intelligence initiatives [2] - The Nasdaq has rebounded, the S&P 500 is nearing record levels, and the Dow has surpassed the 50,000 mark [2] Group 2 - A series of economic data releases this week, including retail sales, non-farm payrolls, and the consumer price index, are expected to influence Federal Reserve interest rate decisions [3] - Nearly 20% of the S&P 500 Index reached new highs last week, despite a selloff in the software sector [4] - The ISM Manufacturing Purchasing Managers' Index has outperformed expectations, indicating favorable conditions for the stock market and the Federal Reserve [4] Group 3 - AppLovin's stock surged after a short-seller retracted previous claims [5] - Oracle's stock price increased following a bullish outlook from D.A. Davidson [6] - American Airlines flight attendants are calling for the resignation of the CEO amid ongoing issues [7]

Core Insights - Datadog reported a fourth quarter revenue of $953 million, reflecting a 29% year-over-year growth, and a fiscal year revenue of $3.43 billion, up 28% from the previous year [1][6][30] - The company has expanded its customer base significantly, with 603 customers generating over $1 million in annual recurring revenue (ARR), a 31% increase from 462 customers a year ago [6][30] - Datadog launched several new features including Bits AI SRE Agent, Storage Management, Feature Flags, and Data Observability, aimed at enhancing its AI-powered observability and security platform [1][5] Financial Highlights - For Q4 2025, GAAP operating income was $9 million with a GAAP operating margin of 1%, while non-GAAP operating income was $230 million, resulting in a non-GAAP operating margin of 24% [6][30] - The company achieved an operating cash flow of $327 million and free cash flow of $291 million in Q4 2025 [6][30] - For the fiscal year 2025, GAAP operating loss was $(44) million, with a non-GAAP operating income of $768 million, leading to a non-GAAP operating margin of 22% [6][30] Customer Metrics - As of December 31, 2025, Datadog had approximately 4,310 customers with ARR of $100,000 or more, marking a 19% increase from 3,610 customers in the previous year [6][30] - The growth in larger customers indicates strong demand for Datadog's services as organizations migrate to the cloud and adopt next-generation AI technologies [2][6] Strategic Developments - Datadog expanded its collaboration with AWS, introducing new capabilities in AI, observability, and security, including LLM Observability and AI Security for AWS Resources [6][30] - The company is focused on delivering more AI-powered innovations to assist customers with complex challenges in observability, security, software delivery, service management, and product analytics [2][6] Outlook - For Q1 2026, Datadog expects revenue between $951 million and $961 million, with non-GAAP operating income projected between $195 million and $205 million [7][13] - The fiscal year 2026 revenue outlook is between $4.06 billion and $4.10 billion, with non-GAAP operating income anticipated between $840 million and $880 million [7][13]

Oracle Corporation (NYSE:ORCL) is one of the 10 AI Stocks Analysts Are Watching. On February 9, Melius analyst Ben Reitzes downgraded the stock from Buy to Hold while maintaining a price target of $160. The firm is cautious on ORCL, flagging its weak cash generation and AI monetization uncertainty. The firm said that while it admired Larry Ellison’s bold push, it has also cautioned that the road ahead may be difficult. This is because high debt and potential equity raises may weigh on the stock for some ...

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Analysts Are Watching. On February 9, Melius analyst Ben Reitzes downgraded the stock from Buy to Hold with a $430 price target. Investors have been growing increasingly wary about the potential disruption software stocks face from AI. Particularly for MSFT, analyst sees structural AI risks and limited near-term upside at current valuation. Melius highlighted that Microsoft’s 365 business is facing threats from AI, implying a need to increas ...