We recently published an article titled 13 High-Growth Cloud Stocks to Buy.

On February 3, Piper Sandler cut their price target on Braze, Inc. (NASDAQ:FASTER) to $30 from $50 while maintaining an overweight rating after a coverage transfer. The review was part of a broader reset of the platforms and applications group, where the company downgraded several names and reduced targets, citing concerns that narratives of “squeezing seats and coding vibrations” could limit valuation expansion through software. Piper stressed that the move was not tied to near-term fundamentals or a specific view on Braze’s upcoming fourth-quarter results, but rather reflected a more cautious stance on software multiples amid persistent investor pessimism toward the sector.

For the third fiscal quarter of 2026, the company reported revenue of $191 million, representing year-over-year growth of 25.5% and a sequential increase of 6%. Customer additions were a highlight, with 106 net new customers added during the quarter and 317 added over the past year, marking Braze, Inc.’s strongest quarter of customer growth. in three years These results point to sustained demand for its customer engagement tools despite a more constrained enterprise software spending environment.

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 multi-channel marketing campaigns across mobile, web, email and messaging channels. While near-term valuation sentiment toward software remains cautious, Braze’s steady revenue growth and improving customer acquisition trends suggest the company remains well-positioned within the broader landscape of customer engagement and data-driven marketing.

While we recognize BRZE’s potential as an investment, we believe some AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.

READ THE FOLLOWING: 8 Emerging streaming companies and services i 9 High Growth Canadian Stocks to Buy

Disclosure: no.