TSP Weekly Tech Stock Update—June 14, 2025
This Week: MSFT new record high, Zscaler/Datadog get upgraded, GitLab outlook disappoints, BRZE sinks to new 52-wk low, Snowflake versus Databricks, Citi lifts AVGO target, CIBC likes Rubrik & more.
Hello from Rob…
—One to Watch: Braze (BRZE, $27.31) shares earlier this month fell 17% in one session even though the company—a provider of a customer engagement platform for B2C use cases—reported better-than-expected FQ1 (April) results and raised revenue guidance for FY’26 (Jan.).
This week, the stock hit a new 52-week low of $27.25. The market cap is down to $2.88 billion.
In FQ1, total revenue rose 19.6% to $162.1 million, 2.2% above the consensus estimate. But traders didn’t like that it was the thinnest top-line beat in two years. Plus, Braze lowered its FY’26 EPS guidance range to 15 cents-18 cents from 31 cents-35 cents previously.
The company did lift the midpoint of its FY’26 total revenue guide to $704 million (growth of 18.6%) from $688.5 million (+16%).
Braze just completed its acquisition of OfferFit, an AI decisioning company that helps brands deliver highly relevant and personalized customer engagement at scale. Braze plans to integrate OfferFit agents and machine learning models throughout the platform.
The integration of OfferFit complements Braze’s Project Catalyst (now in private beta), a native AI agent designed to drive better customer engagement by rapidly creating, testing and optimizing thousands of experience variations.
Oppenheimer lowered its Braze price target to $44 from $51, but kept its ‘Outperform’ rating. The firm says management is doing a good job navigating a tough operating environment for customer engagement vendors and thinks the valuation appears reasonable for a company delivering durable mid-to-high teens subscription revenue growth.
Stifel kept its ‘Buy’ rating, while trimming its target to $40 from $45. The firm believes execution on the OfferFit integration and Project Catalyst rollout will help “cement Braze as the leading next-gen marketing cloud” and widen the gap of capabilities compared to larger vendors.
In July, Ed McDonnell will join Braze as chief revenue officer, the same position he currently holds at Asana (ASAN). Before that, he was in sales leadership for more than 10 years at Salesforce (CRM), where he helped scale Marketing Cloud.
*Inside This Issue: Why Azure Growth Estimates May Be Too Low
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