LIVE MARKETS-JPMorgan sees opportunity in high-quality software companies
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JPMORGAN SEES OPPORTUNITY IN HIGH-QUALITY SOFTWARE COMPANIES
A recent selloff in software stocks reflects too much pessimism and was too broad-based, which may now make a good opportunity to seek out higher quality companies in the sector, according to JPMorgan.
Investors are concerned about AI destroying the software sector. However recent weakness has occurred in both quality and speculative growth software names indiscriminately, analysts led by Dubravko Lakos-Bujas said in a report.
And, “the market is pricing in worst-case AI disruption scenarios that are unlikely to materialize over the next three to six months.”
In light of this, the bank has created a basket of higher quality and AI-resilient companies that it recommends investors add exposure to, and which the bank thinks could rebound in the coming weeks.
These include Veeva Systems VEEV.K, Snowflake SNOW.K, Twilio TWLO.K, Okta OKTA.O, Microsoft MSFT.O, Palo Alto Networks PANW.O, ServiceNow, Inc NOW.N, CrowdStrike CRWD.O, Datadog DDOG.O, Zscaler ZS.O, Check Point Software Technologies CHKP.O, Tyler Technologies TYL, Guidewire Software GWRE.K, SailPoint SAIL.O, JFrog FROG.O, Netskope NTSK.O, SentinelOne S.N, Q2 Holdings QTWO.K, and CoStar Group CSGP.O.
(Karen Brettell)
EARLIER ON LIVE MARKETS:
MARKET MEASURE SUGGESTS CPI WILL COME IN BELOW FORECASTS CLICK HERE
COLD FRONT ECONOMICS: RETAIL SALES, EMPLOYMENT COSTS, IMPORT PRICES, NFIB CLICK HERE
US STOCKS CLAW HIGHER, AWAIT MORE DATA CLICK HERE
THE AI VERSUS SOFTWARE DEBATE IS "FLAWED" AND "ILLOGICAL," SAYS HSBC CLICK HERE
IN THE WAKE OF THE TECH WRECK, NASDAQ COMPOSITE TRIES TO RIGHT THE SHIP CLICK HERE
BOFA FLAGS ASSETS SHOWING "BUBBLE-LIKE" PRICE ACTION CLICK HERE
A SOFTWARE 'SHOPPING LIST' FOR PATIENT INVESTORS CLICK HERE
KERING SHINES, INSURANCE DRAGS, CHEMICALS BOUNCE CLICK HERE
BEFORE THE BELL: EUROPEAN FUTURES STEADY, EARNINGS DOMINATE CLICK HERE
TRUMP ADMINISTRATION PREPARES TO GUT CLIMATE LAWS CLICK HERE
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