We recently published an article titled 13 High Growth Cloud Stocks to Buy.
On February 3, Piper Sandler lowered its price target on Braze, Inc. (NASDAQ:BRZE) to $30 from $50 while maintaining an Overweight rating following a transfer of coverage. The revision was part of a broader reset across the platforms and applications group, where the firm downgraded multiple names and reduced targets, citing concerns that “seat-compression and vibe coding” narratives could limit valuation expansion across software. Piper emphasized that the move was not tied to near-term fundamentals or a specific view on Braze’s upcoming Q4 results, but rather reflected a more cautious stance on software multiples amid lingering investor pessimism toward the sector.
For Q3 fiscal 2026, the company reported revenue of $191 million, representing 25.5% year-over-year growth and a 6% sequential increase. Customer additions were a notable highlight, with 106 net new customers added during the quarter and 317 added over the past year, marking Braze, Inc. (NASDAQ:BRZE)’s strongest customer growth quarter in three years. These results point to sustained demand for its customer engagement tools despite a more restrained spending environment across enterprise software.
Founded in 2011 and headquartered in New York City, Braze, Inc. (NASDAQ:BRZE) is a cloud-based customer engagement platform that enables brands to manage personalized, multichannel marketing campaigns across mobile, web, email, and messaging channels. While near-term valuation sentiment toward software remains cautious, Braze’s consistent revenue growth and improving customer acquisition trends suggest the company remains well-positioned within the broader customer engagement and data-driven marketing landscape.
While we acknowledge the potential of BRZE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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