Company Overview - JFrog provides DevOps solutions for enterprise software supply chains, including tools like JFrog Artifactory, Pipelines, Xray, and Distribution, focusing on software package management, security, and delivery automation [6][8] - As of December 10, 2025, JFrog's market capitalization is $8.15 billion, with a revenue of $502.61 million for the trailing twelve months (TTM) [5] - The company's stock has experienced a significant one-year price change of 127.10%, reflecting a strong performance in the market [5] Insider Transaction - Director Yossi Sela sold 25,000 shares in an open-market transaction on December 10, 2025, for a total value of $1.75 million, which represents 16.22% of his holdings [2][4] - Post-transaction, Sela retains 129,165 shares, which is 22.9% of his initial position, indicating that future sales of similar size will impact a larger proportion of his remaining stake unless he replenishes his holdings [4][12] - The sale occurred when JFrog's shares had delivered a 126.83% one-year return, with the average sale price of $70.00 per share being close to the market close of $68.98 [4][10] Market Context - The transaction took place as JFrog's stock reached a five-year high, suggesting a strategic timing for the sale [9] - Sela has been on the board of directors since 2012, indicating a long-term commitment to the company, and the sale may represent a realization of gains after a prolonged period of stock price recovery [9][10] - JFrog's stock price had previously experienced significant volatility, dropping from an initial price of $44 per share to just above $16 per share by mid-2022 before recovering [10]

In this article, we highlight the best software infrastructure stocks to buy according to hedge funds.An estimated $45 trillion opportunity may emerge in the software application layer as AI infrastructure spending moves up the stack, according to Byron Dieter, Partner at Bessemer Venture Partners. Dieter joined CNBC on December 29, 2025, to discuss his outlook for 2026. He compared the current AI cycle to the early days of cloud computing, where spending first flowed into data centers, compute, and core in ...

Core Insights - The iShares Semiconductor ETF (SOXX) focuses specifically on semiconductor companies, while the State Street Technology Select Sector SPDR ETF (XLK) offers broader exposure to the technology sector at a lower cost [1][5] Fund Comparison - SOXX consists of 30 positions entirely within the technology sector, heavily weighted towards semiconductors, with major holdings in Advanced Micro Devices, Broadcom, and Nvidia [2] - XLK holds approximately 70 stocks, covering a wide range of technology subindustries, including hardware, software, IT services, and communications equipment, with top positions in Nvidia (13.72%), Apple (12.82%), and Microsoft (11.17%) [3] Performance Metrics - SOXX has achieved a five-year compound annual growth rate (CAGR) of 21.1%, but has also faced significant volatility, including a maximum drawdown of over 45% in 2022 [6] - XLK has a five-year CAGR of 18.6% and a maximum drawdown of 33.5%, indicating greater stability compared to SOXX [7] Cost and Yield - The expense ratio for SOXX is 0.34%, while XLK is significantly lower at 0.08%, with yields of 0.62% for SOXX and 0.55% for XLK [4][6] Investor Suitability - More conservative investors may prefer XLK due to its lower fees and reduced historical drawdowns, while aggressive investors might be attracted to SOXX's higher returns and concentrated sector focus [8]

Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer talked about. Cramer highlighted the stock’s downward trajectory from last year, as he stated: “How about Microsoft? Alright, this company’s been doing very well, but its stock’s been punished by the fact that management wants to spend a fortune on AI. Ever since Microsoft reported its latest quarter, the stock’s going pretty much straight down. How often do you get to buy the stock of Microsoft at $485 after it traded at $555 last summer ...

Figma Inc. (NYSE:FIG) is one of the oversold stocks to buy now. On January 5, RBC Capital analyst Rishi Jaluria lowered the firm’s price target on Figma to $38 from $65 and kept a Sector Perform rating on the shares. The firm believes that 2026 will be a pivotal year where companies prepared for enterprise AI adoption experience significant growth, while those lagging may struggle against the perception that AI is making traditional software obsolete. Although management teams are issuing conservative guid ...

Core Insights - C3.ai's shares plummeted 61% in 2025, reflecting significant challenges in competing within the AI software market [1] - The company experienced a decline in revenue and increased operating losses, alongside the departure of its CEO [2][3] Financial Performance - C3.ai's revenue fell 14% year-over-year to $71 million, with an operating loss of $112 million [2] - The price-to-sales ratio (P/S) has decreased from an initial 90 at its market debut in 2021 to 5.3, indicating a significant drop in market valuation [6] Competitive Landscape - C3.ai is struggling to secure new customer contracts, while competitors like Palantir Technologies are rapidly growing their revenue and profit margins [4] - Despite the overall growth in AI software spending, C3.ai has not capitalized on this trend, leading to a perception of underperformance in the market [8] Leadership and Strategic Challenges - The retirement of founder and CEO Thomas Seibel due to health issues has added uncertainty to the company's future [3] - The company is facing challenges in executing its business strategy effectively, particularly in the AI applications sector [3][10]

Company Overview - Waystar provides a cloud-based software platform focused on healthcare payments, including financial clearance, patient financial care, claims and payment management, denial prevention, revenue capture, and analytics solutions [5][8] - The company generates revenue through subscription and transaction-based fees, primarily serving hospitals, physician groups, and other healthcare organizations [12] Financial Performance - As of Thursday, Waystar's stock was priced at $33.08, with a market capitalization of $6 billion [5] - The company reported a total revenue of $1.04 billion and a net income of $111.18 million for the trailing twelve months (TTM) [5] - In the third quarter, Waystar achieved revenue of $268.7 million, reflecting a year-over-year growth of 12%, alongside an adjusted EBITDA margin of 42% and a net revenue retention rate of 113% [9] Recent Developments - Westwind Capital sold its entire position in Waystar, liquidating 420,897 shares for an estimated $15.96 million, reducing its stake to zero [2][3][6] - This position had previously represented 3.3% of Westwind Capital's assets under management (AUM) [4][6] - Despite Waystar's recent growth, Westwind Capital's decision to exit indicates concerns over the stock's performance, which has declined nearly 12% over the past year, underperforming the S&P 500 by nearly 30 percentage points [4][10] Market Position and Strategy - Waystar is positioned in the healthcare payments sector, benefiting from structural tailwinds in healthcare payments automation [11] - The company is scaling profitably, generating $82 million in operating cash flow in the quarter, but faces leverage and integration risks following recent acquisitions [11]

Investment Rating - The report rates the industry as "Overweight," indicating a positive outlook for the sector compared to the overall market performance [3]. Core Insights - The software sector is expected to experience a rebound in revenue and profit in 2025, driven by cost reduction and improved fundamentals, with AI application commercialization being a key growth driver in 2026 [3][4]. - Customization in the Chinese software industry is a unique characteristic, making it less likely for large models to completely replace applications, as software companies accumulate significant industry know-how through deep interactions with clients [4][7]. - The report identifies the timeline for AI applications to impact valuations, suggesting that significant valuation increases occur when new technology revenue exceeds 10% of total revenue, with 2026 being a pivotal year for software companies [3][15]. - The report highlights four areas where AI applications are likely to commercialize quickly: AI Agents, multimodal applications, AI coding, and AI marketing [15][19][21]. Summary by Sections AI Application Commercialization - The software sector is entering a favorable phase for investment, with AI application commercialization expected to drive revenue growth in 2026 [4]. - Key areas for AI application commercialization include: - **AI Agents**: Enhanced capabilities for complex tasks through multi-agent systems and persistent memory [15][16]. - **Multimodal Applications**: Video and image generation are expected to monetize quickly due to high user willingness to pay [19]. - **AI Coding**: Rapid commercialization with significant ARR growth, exemplified by Cursor's $500 million ARR [21]. - **AI Marketing**: High digitalization and error tolerance in marketing make it a prime area for AI application [23]. Recent Developments in AI Healthcare - OpenAI launched ChatGPT Health, integrating personal health data for personalized health analysis, indicating a rapid penetration of AI in consumer health management [27][30]. - Ant Group's AI health assistant, Antifufu, has seen significant user growth, with monthly active users surpassing 30 million [29][30]. Key Investment Themes - Recommended investment themes include: - Digital economy leaders - AIGC applications - AIGC computing power - Data elements - Medical information technology [36].

Core Insights - The software industry is experiencing a shift due to AI, but the notion that software is dying is overstated, as signs of decline are not evident [1] - The primary impact on the software sector has been a narrative of fear among customers, which is beginning to change as companies recognize that they and their vendors are not being overtaken by AI [2] Group 1: Market Recovery and Key Picks - Analysts from D.A. Davidson, Piper Sandler, and Truist Securities have identified companies likely to lead the recovery, focusing on those providing infrastructure for AI [3] - D.A. Davidson's top pick is Commvault (CVLT), projected to have over 50% upside with a price target of $220, driven by sustained momentum and margin recovery [4] - Other notable stocks include Manhattan Associates (MANH) with a price target of $250, Zeta Global (ZETA) at $29, Box (BOX) at $45, and Datadog (DDOG) with a target of $225 [5][6] Group 2: Additional Analyst Insights - Piper Sandler's James Fish highlights companies like Rubrik (RBRK) with a $75 target, Nutanix (NTNX) at $50, and Axon (AXON) with a $563 target, focusing on "Gen Z" winners and infrastructure plays [7] - Truist Securities' Terry Tillman discusses skepticism around traditional software pricing models, suggesting a shift towards consumption-based pricing as AI becomes more prevalent [8] - As workflows transition to autonomous AI agents, billing based on usage is seen as a logical evolution, allowing for continuous value capture [9]

I specialize in identifying, analyzing, and investing in small to mid-cap growth companies listed on the Canadian and U.S. markets. My focus is on businesses that are scaling profitably, offering best in class products, and demonstrating sustainable advantages over competition. I seek long-term investments in high-quality companies within growing "new economy" markets, including software, artificial intelligence, clean technology, robotics, renewable energy, and other disruptive technologies. I have a stron ...