Why Braze Stock Jumped Today

Braze (BRZE +7.41%) 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.

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NASDAQ: BRZE

Braze

Today's Change

(7.41%) $1.45

Current Price

$21.02

Key Data Points

Market Cap

$2.2B

Day's Range

$19.90 - $21.10

52wk Range

$15.26 - $37.33

Volume

4.7M

Avg Vol

3.2M

Gross Margin

66.12%

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.

US5000.67%
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