nCino Stock – Which Software Stocks Are on Sale?
When the NASDAQ corrected in Feb., it took down high-flying software stocks. The index eventually recovered but many software stocks did not follow. Though valuations are still unfavorable, these stocks are relatively on sale.
C3.ai (NYSE:AI) posted Q4 revenue up 26% to $52.28 million. Gross margins of 78% failed to impress investors. Analysts slashed their price target on the stock. Delays in FY2021 projects are unacceptable. AI stock may lag the markets as investors hesitate in accumulating the stock.
The partnership between AI and Snowflake is promising. Snowflake customers will have access to C3’s AI Suite and its applications.
nCino (NASDAQ:NCNO) is on a perpetual downtrend but bounced back recently. The company forecasted Q2 revenue of between $63 and $64 million. For the full year, total revenue will be between $258 million and $260 million. It will still lose money on a non-GAAP measure. So long as nCino captures business from small banks and credit unions, this stock has the potential to rise.
nCino will probably continue reporting losses for the next year, at least. It runs its platform on Salesforce (NYSE:CRM), which is a risk factor for shareholders. If NCNO stock continues to fall, CRM may buy it out at a discount.