Public software companies have taken a beating in recent months, says Steve Koenig, pointing out opportunity in the valuation resets for stocks in the sector. He considers AI a &quot;disruptive force&quot; but not to all software companies. Cybersecurity is one corner of the software suite he sees benefitting from the AI boom, calling Zscaler (ZS) a well-positioned company. Tom White offers an example options trade for Zscaler. ======== Schwab Network ======== Empowering every investor and trader, every market day. Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document. http://bit.ly/2v9tH6D Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185 Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7 Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore Watch on DistroTV - https://www.distro.tv/live/schwab-network/ Follow us on X – https://twitter.com/schwabnetwork Follow us on Facebook – https://www.facebook.com/schwabnetwork Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/ About Schwab Network - https://schwabnetwork.com/about

Koenig: Software Valuation Reset Offers Opportunity, ZS Strong in Cybersecurity

Schwab Network

We're back on Morning Trade Live. We're looking at some software names this morning. We're looking at Salesforce, ServiceNow, Zscaler, Datadog. Most of them are higher. ServiceNow is down 1.1. But it's interesting actually if you look across the software space, it had been up yesterday when chips were down. We're starting to see a couple of these names losing a little bit of steam as chips are actually picking up in the session. So obviously this game of ping pong as we see between the hardware and the softwares continues.

Right now. But all in all, it does look like investors have been engaging a lot more with softwares of late, particularly since the initial AI disruption fears, which really pulled the rug from underneath a lot of these stocks in this sector. So let's go inside out on the space and joining us now is Steve Koenig, who's the US Head of Software and Research Services Research, excuse me, over at Macquarie. Steve, always nice of you to join us. Thank you so much for your time. So as I mentioned, we have seen investors kind of wrapping their arms around the world.

around software a little bit more recently as we've seen that rotation. Stock prices seemingly have recovered. Obviously, we've got some pretty good earnings out of some of these companies. But what about valuations? Have we seen recovery there too? Good morning, Sam. Yeah, thanks for having me. Yeah, for the public software companies, as opposed to our, we maintain a list of the top 80 AI disruptors.

Koenig: Software Valuation Reset Offers Opportunity, ZS Strong in Cybersecurity

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Koenig: Software Valuation Reset Offers Opportunity, ZS Strong in Cybersecurity

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.