It’s no secret that technology stocks have been driving market gains in recent years, and software stocks have been among the biggest drivers of this growth.
Several factors are driving the software industry forward, such as the rapid advancement of AI technology, the high demand for IT solutions and the continued expansion of the global digital economy.
Wedbush technology expert Daniel Ives has been keeping an eye on the tech industry, and his view of it points to continued strength, supported by AI and cloud expansion.
“Solid corporate spending, the recovery of digital advertising and the AI revolution will, in our view, drive tech stocks higher through the end of the year,” Ives said. “We believe that 70% of global workloads will be in the cloud by the end of 2025, up from less than 50% today.”
With that in mind, Ives adds that it’s time to buy two software stocks. They may not be household names, but according to TipRanks data, both stocks have a Buy rating — and Ives sees significantly more upside for both stocks than the Street consensus. Let’s take a closer look.
Bank base (BASING)
We start with Couchbase, a modern database platform provider that gives users and developers everything they need to support a wide range of applications – from cloud to edge and AI. Couchbase bills itself as a one-stop shop for data developers and architects and makes its services available through its powerful database-as-a-service platform, Capella. Organizations using the service can quickly create applications and services that deliver best-in-class customer experiences and top performance at affordable prices.
The Capella platform brings the popular as-a-service subscription model to the database industry. The company can support database services for a wide range of AI applications, including next-generation AI technology, as well as database queries, mobile access and analytics functions. Customers can also opt for self-managed services through Couchbase’s servers, with local management for both multi-cloud and community apps.
Couchbase’s database service has found success in a wide range of areas, including the gaming, healthcare, entertainment, retail, travel and utilities sectors. The company’s customer base includes big names like Verizon, UPS, Walmart, Cisco, Comcast, GE and PayPal.
In terms of financial results, we see that Couchbase reported Q2 25 numbers early last month. Revenue of $51.6 million was up nearly 20% year over year and came in just above forecast, beating expectations by nearly half a million dollars. Ultimately, the company posted a net loss of 6 cents per share on non-GAAP measures, but that was 3 cents per share better than expected.
