Veeva Systems (VEEV) trades at 51 times trailing earnings, compared with 23 for the S&P 500, after its shares returned 72.7% from July 22 to October 20, 2026. Trefis estimates that at this price Veeva would need to grow revenue 18.8% a year for five years, versus 16.5% revenue growth in the twelve months to July 31, 2026. Management guided fiscal 2027 revenue to $3.68 billion to $3.69 billion, a midpoint implying 15.3% growth, and said it would not guide beyond that year. The article calls the stock somewhat expensive against its growth but not by a wide margin, noting the required growth would be 13.1% over seven years and 33.3% over three.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related news
- Adobe (ADBE) Gains AI Momentum On A Narrative That Still Sees Value
Adobe (ADBE) has drawn attention after new AI partnerships, including an expanded NVIDIA alliance and roles shaping large-scale digital experiences for Heathrow Airport and BWT Alpine Formula One. The share price is up 20.21% over 90 days but down 23.47% year to date, with 1-year and 5-year total shareholder returns down 27.97% and 60.15%. The stock last closed at $255.06, while the most followed valuation narrative puts fair value at $319.96 per share. The article cites $10.32 billion in free cash flow to equity against $7.2 billion in net income, current revenue growth of 8.1%, and risks from faster creative AI competition and any slowdown in growth.
- Is IBM Worth Buying as Software Growth Meets a Premium Valuation?
IBM is showing stronger software execution, cash generation and profitability, but its stock already trades above its longer-term valuation norm, making the setup more demanding for new buyers. Software revenue rose 9% year over year at constant currency in Q3 2026, with Red Hat up 11%, Data up 20% and annual recurring revenue up 8% to $24.9 billion, and management now expects 2026 Software revenue growth of 7%-8%. IBM generated $7.8 billion of free cash flow in the first nine months of 2026 and returned $4.8 billion to shareholders through dividends, yet Consulting revenue grew only 2% at constant currency. Generative AI made up about 30% of Consulting revenue and 35% of Consulting backlog, and the trailing 12-month book-to-bill ratio stayed above 1.0, but converting that backlog into profit remains the key test. Competitive cloud growth from Microsoft and Oracle, along with elevated debt, keeps the case selective.
- IBM Is Up 11.1% in Three Months. Can Its Momentum Keep Building Now?
IBM shares have gained 11.1% over the past three months as third-quarter results showed faster Software growth, better transaction execution and wider operating margins. Revenue growth accelerated to 6% at constant currency, operating earnings per share rose 11% year over year, and operating pretax margin expanded 70 basis points. Software revenue grew 9%, with Red Hat up 11%, Data up 20% and annual recurring revenue up 8% to $24.9 billion, while Consulting revenue rose only 2% and generative AI made up about 35% of the Consulting backlog. Still, uneven enterprise spending and mainframe cycles remain risks, and at 19.3X forward earnings the stock trades above its five-year median of 17.3X and close to the sector's 19.8X and the S&P 500's 19.5X, leaving less room for setbacks.
- Should One Cost Scare You About CrowdStrike Stock?
CrowdStrike (CRWD) paid employees $1.2 billion in stock over the year ended July 2026, about 23% of revenue, even as sales grew 24.3%. Diluted shares rose to 1.0 billion from 905 million five years earlier, while buybacks totaled only $176 million. Stock pay equaled about 82% of the company's $1.5 billion free cash flow, and the GAAP operating margin was -2.2%. As of October 21, 2026, the stock traded at 45.2 times sales versus 3.1 times for the S&P 500, and it returned 90.1% over the year against 16.5% for the index. The article says concern would grow if stock pay starts rising faster than sales, and suggests watching this ratio in the fiscal Q3 2027 report expected in late 2026.
- How Did Strategy Stock Leave Its Industry Behind?
Over the five years to October 20, 2026, Strategy (MSTR) rose 88.2%, outperforming 117 of 125 peers in Application Software, where the median company fell 46.1%. The gain did not come from business growth: revenue grew only 0.02% a year over three years, and the company reported an $8.22 billion loss for the quarter ended June 30, 2026, as bitcoin prices fell. Over the past year, the stock fell 51.9% while the median software company fell 20.7%, and Strategy beat only 24.5% of its peers. In August, the company sold more than 18.2 million new shares through an at-the-market offering, and it raised its preferred stock buyback program to $3 billion from $2 billion. The article concludes that the lead came from investors paying far more for each dollar of sales, not from the company's operations.
- Palantir Rises 4% as Software Stocks Rally; ServiceNow Gains 3%, Salesforce Holds Flat
Palantir shares rose 4% to $199.41 in afternoon trading, leading a broad software rally as buyers favored AI platform names. The iShares Expanded Tech-Software ETF gained 2% to $108.98 and the Invesco QQQ Trust rose 1.3% to $726.83, while ServiceNow climbed 3% to $153.33 and Salesforce slipped 0.2% to $242.07. On October 19, Knox Systems announced a partnership with Palantir to bring commercial software into the federal government's most tightly secured cloud environments, but neither company disclosed financial terms, and the article says it is unclear whether this news is behind the stock's gain. The article also points to Palantir's steep valuation as a source of doubt about the rally's staying power, and says the third-quarter 2026 report will test whether its government growth holds up.
Related markets
Latest news
- Musk's wants to merge SpaceX and Tesla: Here's what to know
Musk said SpaceX and Tesla have formed special committees to study a merger, which would be worth about $3.5 trillion combined and would be the largest corporate deal in history. SpaceX, valued at about $2 trillion after a record listing this year, absorbed Musk's AI startup xAI in February, while Tesla is valued at about $1.5 trillion. Musk holds about 82 percent of SpaceX's voting power but only about 20 percent at Tesla. Dan Ives puts the odds of a deal at 90 percent by early 2027, though Musk called the requirement of a majority of all Tesla shares 'quite a high hurdle'. Loyal retail investors hold an estimated 25 to 27 percent of Tesla shares, and legal obstacles appear slight because both companies moved their incorporation to Texas from Delaware.
- CoreWeave and Nebius Stocks Are Crashing. Time to Buy the Dip?
Shares of Nebius and CoreWeave each fell 25% in the week of October 12 to 16. The sell-off stems from the yield on CoreWeave's debt in the secondary market surging to 15%, versus roughly 5% on Treasuries, which pushes the debt into 'distressed' territory and signals doubts about its ability to meet obligations. Nebius sold off in sympathy as a fellow neocloud company. The bigger concern is that both companies must keep issuing debt to fund data centers, and if yields are high at issuance, the assumption of nearly unlimited cheap capital could be challenged. The author says it is unclear whether now is the time to buy.
- Disney’s multiplatform Super Bowl plan frustrates ABC affiliates
ABC station owners are irritated that Disney is airing the Super Bowl across several platforms, including Disney+, ESPN2, NFL Network and ESPNU, even though the game is already on ABC and ESPN. A station group CEO estimates that the combined platforms could cut broadcast ad revenue by up to 35% compared with last year. Local affiliates typically earn about 3% of annual ad revenue from the Super Bowl and pay network owners reverse retransmission fees, but Disney+ lacks geofenced ad insertion, so affiliates cannot sell ads to streaming viewers. Disney says national commercials will be identical on all platforms and that streaming major live events is standard industry practice. Super Bowl LX drew 125.6 million viewers in February.
- Meta’s deal to keep Zuckerberg in California adds fuel to wealth tax debate ahead of election
Meta says Mark Zuckerberg will remain in California for eight years and has created a new stock plan that could help cover his taxes if Proposition 40, a 5% tax on Californians worth over $1 billion, passes on Election Day on Nov. 3. According to a filing released with its third-quarter earnings, Meta will issue non-voting Class C shares starting in January, and Zuckerberg can sell or transfer up to 20% of the shares granted to him without affecting his majority voting control. The filing says Zuckerberg’s leadership is crucial to the company’s growth and its AI ambitions, including Meta Superintelligence Labs. Most of the tech industry opposes the measure, while a recent Citrin-Politico poll found 46% in favor and 43% against, suggesting it may fall short of the majority support it needs.
- Nasdaq sell-off: A momentum unwind 'for the record books'
Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management, calls Thursday’s sell-off in the Nasdaq Composite (^IXIC) a momentum unwind “for the record books.” He says the market spent the first half of 2026 driven by a beta and momentum trade led by semiconductors, but in the third quarter, as rates rose, money shifted into quality stocks. He does not think the sell-off is justified by fundamentals, arguing that institutional portfolio managers swapping out of factor positions can drag down whole baskets of stocks. In semiconductors, spot rental rates for Nvidia Blackwell chips are higher than a month ago, showing tightening compute supply, even as financing costs rise and investors worry about neocloud business models and the rising cost of insuring their bonds.
- Dune launches real-time data feeds covering 200 onchain trading venues
Blockchain analytics platform Dune has launched real-time market data feeds covering more than 200 onchain trading venues, aiming to bring this data into the systems of traditional financial institutions. The feeds draw trade data from 12 blockchains, including Ethereum, Solana and Base, about one second after execution, covering both spot trading on decentralized exchanges and perpetual futures on Hyperliquid and Lighter. Early clients include quant funds, market makers, asset managers and bank trading desks, which use the data to assess liquidity and compare prices, though Dune did not name them. Meanwhile, the tokenized stock market has grown sharply, with distributed value reaching $3.58 billion, but 16 companies, including Microsoft, Alphabet and Goldman Sachs, have objected to their shares being traded on OKXICE’s proposed platform, and liquidity remains fragmented.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.