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Constellation Software Inc. (CSU $2,414.73)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP $166.27)
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The Trade Desk Inc. (TTD $20.25)
Q: Can you please comment on the latest quarterly report and conference call as well as your thoughts on if it might be time to move on from this one. If you are more on the sell side with this latest report, any tech sector top favorites you could recommend to replace it with would be greatly appreciated.
5i Research Answer:
The quarter itself looked fine but the outlook for Q1 was below expectations and while revenues of $846 mln were in-line and EPS of $0.59 was slightly ahead of $0.58 expected, markets are not liking the outlook especially when overlaid with fears around AI disruption risks. TTD is becoming more of a show-me story to the markets at this stage so we think it will be in the dog house for a bit here. We would be ok to move on elsewhere. Software in geneal is appearing to bottom a little here so names like CSU and SHOP might make sense here.