Market On Close, Tuesday 10 February

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Software In “Not Dead Yet” Shocker

by Alex King, CEO, Cestrian Capital Research, Inc.

In our Inner Circle Slack chat and webinars we’ve been saying for a little while now that the selling and general spontaneous combustion going on in software is likely to stop soon. That yes, some names are toast at the hands of Clawdbot and its more sophisticated brethren, but that some names will in fact prosper as AI takes ahold of the enterprise. We highlighted some trade ideas last week and yesterday in our live webinar for Inner Circle members, and so far it looks like there is some Phoenix-like events going on in software as we thought.

Here’s Cloudflare ($NET) after hours today, following a strong earnings print.

Look dead to you? Me neither.

I think that if software recovers, the Nasdaq can break out of its range to the upside. That hasn’t happened yet but that’s how I think this will play out. We analyze this through multiple lenses in today’s note as every day.

So let’s get right into it. Today’s note is available to Inner Circle and Circle members alike.