Sectors: Technology
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TNE +4.56%: HY results out for the enterprise software business today, shares were initially on the back foot before rallying through the session. The numbers showed impressive growth for the half, however, they were broadly a touch softer than expected. Annualized Recurring Revenue (ARR) grew 21% to $424m, though this was a slight miss to consensus.
Software business TNE has lagged behind the local Tech Sector in 2024, posing the question of whether it’s time for some catch-up or whether we should stay with the strength.
I would like your opinion on the current strong share price growth in this comapny. I understand it currently has no instituional or major shareholders – is that an issue? It does seem to be on a very strong footing with strong market tailwind and growth pathway. I am a holder with an overweight position and wanted a sanity check to see if I am missing any red flags here?
Dear James and team,
The ASX tech stocks have demonstrated their need for a strong bond market to keep stretching valuations on the upside, a few of which were already rich. Overall, we welcome this pullback to increase our exposure to the rate-sensitive sector, but we are conscious that volatility is likely to increase on the stock level. On the macro front, we will be looking for catalysts/triggers that bonds are basing on, and stocks have priced in the diminished chances of interest rate cuts before Christmas.
Just curious about JIN the latest report dates back to 2022 (which I stand to be corrected) – any further analysis or guidance you may have?
MM recommended SNOW in the international equities portfolio on 1 March and it has dropped around ~7%. Has MM reconsidered it position and will you look at selling if it drops another 2-3%?
As subscribers may have read, NEXTDC (NXT) is tapping the market for $1.3bn; some investors might be tempted to fund the raise by the data centre operator with other ASX tech names, hence today’s report. Last night’s +1.65% surge by the NASDAQ-100 illustrated there’s still plenty of life left in the sector, especially if we do see the Fed and ECB start cutting rates this year. For all of the talk around excessive valuations and sticky inflation, the US tech sector is still less than 1% below its all-time high.
Hi James and Team
Audinate has reached a high of $23.51 on 15th March and is trading below $20 today ($19.92). Your last note on AD8 that I could find was on 22/3/24.
“We continue to believe AD8 is a great growth story. We can see further consolidation by AD8 in the $20-25 area, but this is a stock that we like to buy into dips. – our optimum entry level is ~$20”
Does your view on AD8 remain the same – Is this dip below $20 the opportunity to buy? or has your optimum entry level changed? Are MMatters considering adding to AD8?
regards
Debbie
