Q2 On-Cycle Preview: Favor AMZN/MSFT/TEAM; Downgrade DDOG to Hold; Call Tue AM

Research evidence excerpt

Q2 On-Cycle Preview: Favor AMZN/MSFT/TEAM; Downgrade DDOG to Hold; Call Tue AM

USA | Software EquityJulyResearch21, 2026

KEY STOCKS FEATURED INCLUDE:Q2 On-Cycle Preview: Favor AMZN/MSFT/

TICKER RATING PRICE TARGETTEAM; Downgrade DDOG to Hold; Call Tue AM

MSFT BUY $575.00

We expect Q2 to mark a shift back to stock-specific alpha vs. broad-based GOOGL BUY $445.00

sector positioning. We like AMZN, MSFT, and TEAM on stronger cloud/AI AMZN BUY $320.00

momentum and achievable bogeys and are negative on PLTR due to escalating META BUY $825.00

comps and competition. We remain fundamental fans of DDOG but downgrade CRWV BUY $150.00

to Hold after a +94% YTD move and valuation at 18x CY27 rev. While IGV has

rebounded off its lows, we see the group rangebound as investors navigate

persistent walls of worry.

KEY CHANGES INCLUDE:

Please join us for a Software + Internet Preview + META Vision Dive call today at 11AM ET. Register here TICKER RATING PRICE TARGET

CRWV BUY $150.00 ($160.00)

Selectivity to Drive Long / Short Alpha, Beta Largely Behind Us: We believe the market is

transitioning away from indiscriminate negative positioning toward a more fundamentals-&-

estimates-driven setup where execution & positioning will matter most. We advise investors

against assuming that the negative IBM pre-announcement is a signal for broad software demand Chart 1 - Summary of Ratings/Price Target

Changesweakness. In contrast, our latest CIO survey (see here) points to accelerating software and cloud

Ticker NewPrice Target Old New Rating Old

spend into CY26. Overall, with clearer winners and laggards emerging in the AI race, and sentiment DDOG $280 $210 Hold Buy

still near trough levels, the way to get paid this earnings season is to lean into idiosyncratic long/ IBMDT $260$55 $320$45 HoldBuy