Software Likely Bottomed Last Week: 3 Companies I'm Buying

Amrita RoyInvesting GroupFollow5ShareSavePlay(17min)Comment(1)SummaryEnterprise SaaS sentiment is shifting from AI-driven commoditization fears to optimism, as Anthropic's recent event highlights AI integration and data advantages for incumbents.Palantir, Cloudflare, and ServiceNow are demonstrating revenue acceleration, robust retention, and steady/expanding margins, positioning them as likely winners in the sector's revival.PLTR projects 61% FY26 revenue growth and boasts a Rule of 40 score of 127%; NET is the fastest-growing cybersecurity stock, while NOW might be the most misunderstood player.Despite ongoing volatility and sector-wide de-ratings, disciplined capital deployment in select accelerating names offers attractive risk-reward for capturing the next S-curve of growth.Looking for a portfolio of ideas like this one? Members of The REIT Forum get exclusive access to our subscriber-only portfolios. Learn More » narvo vexar/iStock via Getty Images Introduction and Investment Thesis Since the start of the year, Anthropic has triggered four separate selloffs. It started with the launch of Cowork plugins on February 3 that fundamentally challenged the predictable “seat-based” pricing model of Enterprise SaaS companies. This was followed by the launchThis article was written byAmrita Roy5.74K FollowersFollowAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustainable, growth-driven companies that maximize shareholder equity by meeting their growth-oriented goals. In addition, she also started her own award-winning newsletter, The Pragmatic Optimist which focuses on portfolio strategy, valuation, and macroeconomics in concert with her husband Uttam Dey who is also a contributor on Seeking Alpha. Prior to cofounding her fund, Amrita worked for 5 years in high-growth supply-chain start-ups in downtown San Francisco, where she led strategy. During her time in the Bay Area, she also worked with venture capital firms and start-ups, where her efforts led her to grow the user acquisition business. During this time, she was introduced to investment portfolios and was able to maximize returns for clients during the pandemic. The cornerstone of Amritas work rests on democratizing financial literacy for everyone and breaking down financial jargon and complex macroeconomic concepts into formats that are easily digestible but more empowering than the typical investment thesis. Her newsletter has been featured as the Top Newsletter in Finance on popular newsletter platforms and she aims to bring her ideas to Seeking Alpha as well.Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR, NET, ZS, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.