Good morning. QQQs +70bps on the back of strength from MRVL and CRM. Yields ticking up 4-5bps. BTC flat. China Flat. UBS Conf continues today: Open AI CFO, Perplexity CBO, TSM CFO, PYPL CFO, FSLY CEO/CFO, Databricks CEO, BILL CFO among others.
Let’s get straight to it - we’ll recap CRM/MRVL first then move on to news/research.
CRM +12%: Beat-and-raise but Agentforce steals the show.
We’ve been writing how we are shifting into the year of AI Agents and yesterday’s print and today’s stock reaction to just a small beat is confirming that. Just like 2023 was a year where semis were largely driven by top down thematic moves (anything remotely AI ripped), we think software co’s with ramping AI agents are likely to outperform in this market. Names like TEAM, HUBS, NOW, FRSH and MSFT likely to benefit. SaaS/Sw multiples have come in so much since 2021 - we’re in a similar “frothy” market environment and now you’ve added the AI Agentic theme on top and revisions going up — could mutiples of these names re-rate back to where they were? That’s the dream sw bulls are envisioning this morning…
However, we think CRM is uniquely positioned as:
Keep reading with a 7-day free trial
Subscribe to TMT Breakout to keep reading this post and get 7 days of free access to the full post archives.