Key insights
- Figma's strong earnings beat and positive guidance, coupled with Crowdstrike's recovery, suggest potential renewed strength in the software sector. With Salesforce reporting later this month and expectations low, there's an opportunity for a positive surprise that could further shift market sentiment away from the recent 'SaaSpocalypse' narrative. This could lead to increased investor interest and capital allocation towards software stocks.
Figma reported today and beat eps by 66% (0.10 vs 0.06) beat revenue by 6% (333.5mil vs 315) 46% yoy growth. Increased revenue guidance 4% (projecting 35% yoy growth) and increased operating income guidance by 25%. They’re currently up 13% after hours after getting crushed -46% ytd with all the scare around claude design and google stitch. Are we seeing the first signs that the scare was overblown and it’s no so easy to just copy cat someone else’s product?
Crowsdstrike is already back to ath after being down 37% a couple months ago.
Salesforce reports later this month down 34% ytd, expectations are low, the opportunity seems primed for a good beat to change the narrative around software.
Semis are crowded, is software back on the menu?
Poor person positions:
14 shares crwd, 21 shares crm, 1 crm $165C 1/21/28