Braze (BRZE 2.46%) shares jumped on Friday, finishing the day up 7.4%. The S&P 500 and the Nasdaq Composite finished down 0.7% and 0.5%, respectively.
The customer-engagement software company's stock is getting a lift from two main catalysts: a "Buy" rating from Goldman Sachs and a broader rebound in software stocks.
NASDAQ: BRZE
Key Data Points
Goldman Sachs sees Braze as a winner
On June 24, Goldman Sachs analyst Callie Valenti assumed coverage of Braze with a Buy rating and a $34 price target -- roughly 77% above where the stock had been trading.
Software stocks have been under pressure
Braze stock is down about 40% over the past six months as part of a larger sell-off in software stocks. The market has been fearful that AI models from OpenAI and Anthropic could simply replace what software stocks like Braze do. That fear is easing.
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Braze's growth is strong, but profitability remains elusive
In its most recent quarter, Braze posted revenue of $211 million, up 30% year over year, alongside record free cash flow and a full-year guidance raise.
Unfortunately, the company continues to struggle to turn a profit, losing just shy of $27 million last quarter. If the company can reverse that, Braze stock could take off.
