- PRICING
- LIVE QUOTES
- LEARN
- HELP
EN
Why Braze Stock Jumped Today
Key Points
Braze shares jumped 7.5% after Goldman Sachs initiated coverage on Wednesday.
Braze posted 30% year-over-year revenue growth and record free cash flow last quarter.
Braze (NASDAQ: BRZE) 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.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
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.
Source: Getty Images
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.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Braze and Goldman Sachs Group. The Motley Fool has a disclosure policy.