TMTB EOD Wrap

Good afternoon. QQQs +85bps led by you guessed it…no wait, not semis! Leadership broadening out in tech as both software — on the back of SNOW’s stellar print — and internet — on the back of lower Oil and Iran hopes — driving investors to feel more comfortable putting money in those areas. Software has done almost a complete 180 in sentiment over the last month. I wouldn’t say it’s outright positive, but I’m definitely hearing of more investors looking for their spots and putting $ to work. It started with Cyber and DDOG ( and some names like U) at first as both hit new highs while the rest of the space lagged, then ORCL got the AI bid, moved onto to MDB/SNOW getting some love (which is now in full force after SNOW last night and MDB this evening), APP started working late last week, and strength now working its way down the stack into names like NOW, TEAM, and GTLB. Charts definitely looking a lot better across the space as IGV approaches the 200d. However, the names most firmly entrenched with AI concerns still struggling to catch a bid; that includes names like WDAY, IT Services, SAP, CRM, HUBS, MNDY among a few. Has been a ripe place for L/S alpha over the last month.

Yet despite some sentiment/positioning shifting slightly to software, we’re not seeing the massive factor whiplash we saw early in the year. While some investors are getting more interested in software, I definitely don’t hear many wanting to abandon their AI semi longs either other than some trimming here and there.

Post the close, we got goodness on both fronts. In software, MDB +20% with a nice beat and raise and a 3ppts beat on Atlas vs. bogeys and FY moving up by $60M vs $28M beat a big raise. DELL +30% on a huge beat and raise lifting f27 revs to $60B from $50B. AI orders at $24.4B and $16.1B in Ai server sales. Call going about as well as you can hope for. NTAP +10% another name managing the component backdrop well with a nice 6% product beat as AI data storage inflects better and margins coming in better as well. ESTC -10% the main loser as Clouds revs missed ($217M vs bogeys of $220M+ and down sequentially) despite the FY raise.

Let’s get to it…