Latest news with #BrentBracelin
Yahoo
7 hours ago
- Business
- Yahoo
How to play software stocks now
Software stocks like Salesforce (CRM) and Microsoft (MSFT) were in big focus this earnings season. But technologies like AI are changing the game for these software vets. In the video above, Piper Sandler equity research analyst Brent Bracelin gives his take on the maturing software space. He also shares one of his top stock plays. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Maybe to start, Brent, kind of a bigger picture question I had for you, because I think when a lot of investors, Brent, they think of your coverage universe, they think of software names. They think, okay, these are these are relatively tariff resistant, but there can be kind of downstream effects because of all the uncertainty, Brent. Maybe maybe it's longer sales cycles or smaller deal sizes. I'm just curious whether you're picking up on any of that in your coverage universe. It's a good question and a complex question because it's not an easy answer. I think part of the challenge in software right now is really around the stage of maturity. And I think you're seeing this in Salesforce today is software had this great 20-year cycle as we think about the transition from on-prem to cloud from license to subscription software. And we've really treated these software companies as pure growth companies. But the cloud market is maturing, as we kind of enter a whole new wave of software investment going into AI. And I think it's been a bit challenging as we think about the right multiples, the right valuations we're willing to pay for what is now looks like more traditional software, mid-teens, low teens growth rates, in some cases high single-digit growth rates. That's signs of maturity, frankly. And I think that's what's driving the movement, interest in the software sector, more so than I would say tariffs. Um, I think this is still a pretty resilient group, but the growth that we saw, let's say, three years ago, 40, more than 40 public cloud software names growing over 40%. If I look at that profile of 30% growers in 2026, there's zero. So very different growth profile today in the software landscape than there was, let's say, three years ago. Well, and Brent, let's bring it back then to Salesforce, because it is seeing more growth in that one area, right, the sort of AI area, but that area is still a pretty small slice of the overall pie. So is that enough to be an impetus for people to come in and buy the stock? Eventually, yes. But if you're a growth investor How eventually, I guess, is the question is part of the question. Yeah, it's a really small part of the overall business. Growth still overall slowed in the quarter. If you look at where growth was at a year ago, and the one part of their business where you're seeing AI show up, which is their platforms and other segment, that grew from like 12% to 14%. So seeing a slight acceleration in one of their segments, clearly not enough to drive an acceleration overall. Could that happen next year? Possibly. More likely than not, it could be two years from now before you see it having a much more material impact on the growth profile. But recall, these are similar things that we saw at Microsoft 10 years ago. We saw this about eight, nine years ago at Oracle with OCI. It takes a long time for enterprises to adopt these new technologies before it really starts to drive a reacceleration in a mature business. And that's what Salesforce is now. It's a mature software business. Brent, you have a number of buys in your coverage universe. If I was asked to Brent, boil it down, give me one you like the most here, Brent. What would you tell me? The interesting thing is we have had in the last 45 days since the April lows, a big spike in the software index IGV over 25% bounce here. So a lot of our favorite ideas have moved. Um, but I would say the one that still has room to run is a company called MNDY. This is a billion dollar plus ARR business, billion dollars in cash, 25% plus grower, 25% free cash flow margins, long runway for growth. This is a company that has custom app and workflow builder tools for the masses. They're selling into large organizations that in some cases will deploy this across 80,000 seats, and they can also sell this to a small business. So really broad, broad market opportunity here, but if you're looking for growth and profitability, is one of our favorite highest conviction growth ideas, and it still has room to run. Brent, it is always great to see and to have you on the show. Thank you for joining us, sir. Absolutely, thanks for having me.
Yahoo
3 days ago
- Business
- Yahoo
How to play software stocks now
Software stocks like Salesforce (CRM) and Microsoft (MSFT) were in big focus this earnings season. But technologies like AI are changing the game for these software vets. In the video above, Piper Sandler equity research analyst Brent Bracelin gives his take on the maturing software space. He also shares one of his top stock plays. To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Yahoo
22-05-2025
- Business
- Yahoo
Snowflake Q1 Beats Expectations, Stock Jumps 10% Pre-Market
Snowflake (NYSE:SNOW) jumped over 10% in pre-market trading after reporting Q1 FY26 adjusted EPS of $0.26, topping the $0.21 consensus, and revenue of $1.04 billion, above the $1.01 billion Street view. The cloud data-warehousing specialist also lifted its full-year product revenue guide to $4.325 billion from $4.28 billion, reflecting confidence in sustained growth. Warning! GuruFocus has detected 6 Warning Signs with SNOW. Piper Sandler's Brent Bracelin boosted his price target to $215 from $175 on Snowflake's highest conviction growth idea status, citing a $39 million beat on guidance and 26% product-revenue growth. Wolfe Research's Alex Zukin raised his target to $230, lauding impressive execution in margin expansion and strategic MSFT partnerships. Goldman Sachs' Kash Rangan echoed the bullishness, lifting his target to $230 while spotlighting Snowflake's evolution into an end-to-end data and AI platform ahead of its June 25 Summit. Why It Matters Investors should note Snowflake's ability to outpace peers on growth and free-cash-flow margins even amid macro uncertainty, positioning it as a leading data-and-AI enabler. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
05-04-2025
- Business
- Globe and Mail
MSFT, AVGO, or PLTR: Which Tech Stock Is Wall Street's Most Attractive Pick?
Tariff wars, macro uncertainties, and increased competition in the artificial intelligence (AI) space have battered several tech stocks recently. Despite the ongoing pressures, Wall Street remains bullish on many technology players due to their solid fundamentals, strong execution, and robust long-term growth potential. Using TipRanks' Stock Comparison Tool, we placed Microsoft (MSFT), Broadcom (AVGO), and Palantir Technologies (PLTR) against each other to find the most attractive tech stock, according to Wall Street analysts. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. Microsoft (NASDAQ:MSFT) Microsoft stock has declined more than 15% so far in 2025 due to weakness in the broader market, concerns about a slowdown in AI spending, and growing competition in the AI space. Moreover, reports of the company halting its data center projects worldwide have raised worries about its AI demand. Also, investors are wary of the slowdown in the revenue growth of Azure and other cloud services, and the company's significant capital spending on AI amid the emergence of cheaper Chinese AI models. Nonetheless, Microsoft bulls continue to be optimistic about the company due to its solid fundamentals, expectations of strength in Azure due to AI prospects, expectations of sustained margin expansion, and a potential rise in free cash flow as capital spending eases. What Is the Price Target for MSFT Stock? Recently, Piper Sandler analyst Brent Bracelin reiterated a Buy rating on Microsoft stock with a price target of $520. Following meetings with management, Bracelin maintained a positive stance on MSFT, thanks to its extensive product offerings, healthy commercial RPO (remaining performance obligation) that rose 34% year-over-year in Q2 FY25, strong operating cash flows of over $100 billion annually, and an at-scale $13 billion-plus AI business growing by triple-digits. Bracelin believes that these factors could help the company navigate an uneven macro environment, which has recently dragged down MSFT stock. He believes that investors should buy the weakness in Microsoft stock. With 32 Buys and three Holds, Wall Street has a Strong Buy consensus rating on Microsoft stock. The average MSFT stock price target of $510.03 implies about 42% upside potential from current levels. See more MSFT analyst ratings Broadcom (NASDAQ:AVGO) Broadcom stock has declined about 37% so far this year due to tariff wars, chip export restrictions, and rising competition. Nonetheless, Wall Street remains bullish on the semiconductor company due to the demand for its application-specific integrated circuits (ASICs) or custom processors, which are experiencing robust demand due to the ongoing AI wave. Notably, Broadcom's custom AI chips help to train and deploy AI models. The company's AI revenue in Q1 FY25 jumped 77% year-over-year to $4.1 billion. Broadcom expects its AI revenue to increase to $4.4 billion in the fiscal second quarter. In December 2024, Broadcom disclosed that it expects its three hyperscale customers to deploy 1 million AI chips in networked clusters by 2027, adding that it estimates an addressable market of $60 billion to $90 billion. Further, Broadcom is now working with four other potential customers to develop their own custom AI chips. What Is the Forecast for AVGO Stock? On Wednesday, Daiwa analyst Louis Miscioscia upgraded Broadcom stock to Buy from Outperform but lowered the price target to $225 from $275. The analyst's upgrade is based on four 'strong drivers' for AVGO this year and in the times ahead. These four drivers are demand for the company's ASIC processors, strength in the networking business, contribution from the VMware acquisition, and the core semiconductor business, which is nearing a rebound after two weak years. The 5-star analyst views the pullback in AVGO stock from the December high as an attractive buying opportunity. Overall, Wall Street has a Strong Buy consensus rating on Broadcom stock based on 23 Buys versus two Hold recommendations. The average AVGO stock price target of $250.90 implies 71.5% upside potential. See more AVGO analyst ratings Palantir Technologies (NASDAQ:PLTR) Palantir Technologies stock has rallied 229% over the past year, driven by the data analytics company's strong financials and solid AI tailwinds. However, concerns about the impact of the Trump administration's spending cuts on the company's government business and elevated valuation have been weighing on PLTR stock. The company has delivered solid growth rates across its commercial and government businesses in recent quarters. That said, several analysts are concerned about whether Palantir can maintain this momentum amid macro headwinds and tariff wars. Moreover, significant insider selling has also added to investors' woes. Is PLTR Stock a Buy, Sell, or Hold? Recently, Jefferies analyst Brent Thill reaffirmed a Sell rating on Palantir Technologies stock with a price target of $60. The 4-star analyst was encouraged by the ROI (return on investment) case studies presented by the company at its sixth Artificial Intelligence Platform (AIP) customer event and acknowledged its role in helping transform businesses. However, Thill contends that the optimism about the company is already baked into its valuation. With a P/E (price-to-earnings) multiple of 45x 2026 earnings, the analyst noted that PLTR is the most expensive stock in Jefferies' coverage. He argued that while Palantir's fundamentals have been solid, the stock's valuation remains the biggest concern. He also highlighted notable selling of PLTR stock by insiders. Wall Street has a Hold consensus rating on PLTR stock based on four Buys, 11 Holds, and four Sell recommendations. At $92, the average Palantir stock price target implies 24.3% upside potential. See more PLTR analyst ratings Conclusion Wall Street is highly bullish on Microsoft and Broadcom stocks but sidelined on Palantir stock. Analysts see higher upside potential in AVGO stock than in the other two tech stocks. Despite the tariff troubles and ongoing macro uncertainties, analysts remain upbeat about the demand for Broadcom's custom AI chips and the momentum in its infrastructure software business.
Yahoo
26-03-2025
- Business
- Yahoo
Analysts Urge "Buy on the Dip" as Microsoft Dips 10% Amid 157% AI Surge
March 26 - Investors talk about catching a bargain as Piper Sandler (PIPR, Financial) spots a golden opportunity in Microsoft (MSFT, Financial). The firm talks up the dip as the stock slid near 10% over the last six months. This price drop now feels like a chance to get into a company with solid fundamentals. Piper Sandler's analyst Brent Bracelin also reiterated his "Overweight" rating, setting a price target at $520. Warning! GuruFocus has detected 1 Warning Sign with MSFT. Microsoft ramps up its momentum with an impressive jump in AI workloads, up 157% year-over-year, thanks to its powerful Azure platform. Big names like Alaska Airlines (NYSE:ALK), Toyota (NYSE:TM), and Walmart (NYSE:WMT) lean into its technology, which sparks further confidence among investors. The company also makes smart moves to streamline operations and boost digital transformation. A key project with OpenAI on the horizon pushes its next-generation AI capabilities even further. Meanwhile, an $80 billion-plus push into a flexible, global data center network sets the stage for future growth. With more than $13 billion riding on its AI business, Microsoft stands strong against market challenges. This upbeat strategy puts the tech giant at the forefront of innovation and gives investors a good reason to see today's dip as a solid buy-in opportunity. This article first appeared on GuruFocus. Sign in to access your portfolio
