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“While the sector is not a blanket bargain, we do uncover a handful of software stocks, such as Salesforce, that appear attractive on intangible value.”
@Sparkline Capital
Salesforce sold off on AI fears but its intangible moats screen cheap, set to recover as a survivor
CRMLONG@ $182.61
$186.64+2.21%
since call May 19
peak +5.8%
“Today's software selloff offers a live example of a dispersion-rich opportunity set.”
@Sparkline Capital
Software stocks at a discount are a dispersion-rich stockpicking opportunity, not a blanket bargain
IGVLONG@ $90.82
$92.95+2.35%
since call May 19
peak +2.5%
“However, we find an abnormally long left tail of "value traps" – stocks, such as Duolingo, which appear unattractive even after huge drawdowns.”
@Sparkline Capital
Duolingo screens as a value trap, cheap on multiples but weak on intangible moats, at risk after its drawdown
DUOLSHORT@ $114.53
$136.05-18.79%
since call May 19
00:00LONG
“Indeed, the intangible value factor produced significantly higher returns in Disruption Scare Stocks, due to their much greater dispersion.”
@Sparkline Capital
Intangible value names get mispriced in AI disruption; the dispersion among incumbents rewards a factor tilt that buys the cheap winners.
ITANLONG@ $39.80
$42.81+7.55%
since call May 19
peak +7.6%
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