Sectors: Software
Audinate’s 1H26 result marked a return to growth, but it also reinforced our view that FY25–26 are not normal years for the business. Post-COVID distortions, inventory digestion and US tariff uncertainty continue to weigh on near-term momentum. That said, the long-term investment case remains intact, and we think the market is pricing in very little upside.
Hi Guys,
Hi Market Matters
Can I have your current view on ZIP?
Have been wanting to add to my ZIP holding but have held off.
It has hit a low of $2.25 this morning. Would you be buying now?
Also with CAT – Initially purchased about half the holding I would buy – would you be holding / selling or adding at the moment?
regards
Debbie
Hi James and team,
The $16.6bn NZ-based accounting software business has gone from hero to zero in just eight painful months. There have been a few issues here compounding the general AI-driven sell-off across the software space:
MSFT delivered a clean beat across revenue and earnings in the 2Q, the 14th consecutive beat at earnings time, though capital spending was higher than expected, and the stock was trading down ~4% in afterhours trade.
We haven’t revisited this Emerging Companies Portfolio holding for some time, and it’s been a frustrating one. Since initiating the position in early 2023 at $2.89, the share price has drifted lower, now trading around $2.52. We originally bought roughly four months after the failed Pacific Equity Partners (PEP) takeover bid at $4.50/share, on the view that while the deal didn’t proceed, it established a clear valuation anchor.
Happy New Year gents!
