Steady as She Goes | Off Quarter Checks Show Resilient Spending

研报英文原文证据摘录

Steady as She Goes | Off Quarter Checks Show Resilient Spending

y to exhibit the strongest results, with SAIL 11.77

organizations across all industries rushing to stand up the necessary security and SNOW 151.50

infrastructure platforms to enable adoption. ZS 148.87

INDUSTRY RISKS

• On-calendar prints giveth, and taketh away. Following a start to the year where the

market broadly sold all of software with little discretion regarding who may or may not be Poor macroeconomic conditions could impact

the capacity for enterprise IT investments and a longer-term AI beneficiary, 1Q prints began to reward those who are seeing tangible

the health of supporting ecosystem partners

impacts to results from AI - and punishing those who miss the mark. Strong, >20% T + 1

moves out of DDOG, FROG, FTNT and TEAM were, in our view, compelling examples

of incremental buyers showing up for names with strong AI stories (noting DDOG and

FTNT are now up ~50% YTD), while prints like NOW and CHKP which missed the market

relative to expectations were met with very negative price action, despite being sold off

to begin the year. We think this trend will continue into off-quarter prints.

• CRWD and SNOW offer compelling setups in light of the environment. Building

on this theme of market bifurcation between those showing benefits of AI and those

who are not, our high confidence ideas into upcoming prints center on setups that look

compelling from a fundamental perspective, but also will be able to speak to a tangible

AI narrative. We think CRWD will continue to show compelling NNARR growth trends

to begin F'27, lending to solid upside to expectations. Its inclusion in the initial launch

of Project Glasswing should be a tailwind to forward demand, which we believe can