There will be winners and losers but software sector is 'STILL A BUY': Luke Lloyd

追加: 2026-06-01

[00:00:00]All right, folks. Now, my next guest says that the market's primary issue, we just kind of touched on this, elevated rates. We're just kind of concerned about elevated rates. I want to bring in Lloyd Financial Group President and CEO, Luke Lloyd. Luke, I'll I'll keep the other chart up too cuz I'm going to ask you about this, but first so far higher rates haven't derailed the rally. Now, everyone keeps trying to find a magic number and whether it's on a 10-year yield or whatever, but it so far so good, but you think that could be the one thing possibly trip this up.

[00:00:28]>> Well, inflation going lower, rates going lower with this Iran situation gets figured out, it's a bull case for the entire market specifically a lot of names that really haven't partaken in this whole entire rally. It wasn't just long ago, just a few months ago or a year ago maybe at this point that Intel was the dog and everyone said don't buy Intel. Well, look what happened since then. We bought it at 25 bucks, it's at 120 bucks. There's so many things that are pretty obvious to me like Intel was a dog and everyone said don't buy Intel because it makes CPUs not GPUs. Well, you need CPUs for Nvidia's GPUs.

[00:00:58]Software is kind of the same thing. AI's the new I want to get that one second. I want to get that one second. So, you're okay then. This is also keeping you bullish these earnings. The same thing.

[00:01:04]I mean, no one should kind of ignore that. Okay, let's talk about the software thing because IGV, the software index, the SaaS apocalypse got hammered.

[00:01:12]There's been a couple of efforts to rally, but I should point out Zscaler last night reported getting annihilated down 31%.

[00:01:20]It's tough. I mean, there will be losers here, but you also said no, there's some winners also in your mind.

[00:01:25]>> Well, we own Fortinet. Uh we don't own Zscaler specifically, but Fortinet's been a rockstar for us. I think we bought it at 75 bucks, we bought it at 125 bucks or so now. Cybersecurity, obviously you're going to have the bad actors with AI. People trying to break the code, the coders are trying to do bad things, but you're going to have to have the protection as well. So, cybersecurity remains the spot to be as well. Obviously software as well. Uh the industry is still growing.

[00:01:47]>> selective, right? I mean, it looks like Now's acting better, Datadog is acting better. You know, some of these names are acting better. Salesforce reports, that's the granddaddy of them all. If they lay an egg, do you go back to the drawing board on all these names? I don't think so. I think there's going to be winners, there's going to be losers, but the sector as a whole is still a buy. And specifically like, you know, everyone debates buy software semis.

[00:02:06]Well, you can kind of own both sometimes through Sony. So, Sony's one of my favorite pictures.

[00:02:10]>> up then. I want to bring up the chart because you're doing some serious bottom fishing here. All right, you like Sony, it hit a double bottom there, it's coming back a little bit. Why do you like it? Cuz 60% of Sony's roughly software, 40% is basically the photonic semiconductor space. So, it's funny how about a year ago, you know, 2 years ago it was GPUs and CPUs. A year ago it became quantum computing and became photonics. I think software's that next area and you also have to have the semiconductor play as well cuz I think semiconductors continue to do well as well.

[00:02:37]>> Here's a software name. I was in this, I bailed out, I finally gave up, you know, but you like it here. It is forming a bottom, but I wonder what takes it higher. Well, it's crazy. The banking and insurance sector is still stuck in the 1950s and 60s. There's not been much innovation in the insurance and banking sector. I think AI is going to revolutionize the banking sector because of the lack of innovation. Guidewire specifically works in the insurance space that needs revamped and they have 99% retention rate. Once you get involved with Guidewire, you can't get out. I I think you were Did you Were you in the Coast Guard or something? I mean, like [laughter] you have a hero's mentality. I'll save you.

[00:03:10]I'll go Yeah, so Hubs, listen, HubSpot I used to love HubSpot. It's getting hammered. And so, this is where you see the opportunity. There has to be opportunity. I mean, these stocks, all the ones I kind of reference, a lot of these names, HubSpot specifically, this guy is 16 times forward multiple. Back in '21, that was a 45 times forward multiple. These stocks are doing about four or five times the revenue, the same earnings growth, but they're cut basically by a third or fourth from the valuation they had in '21. So, why are they beaten up? I don't know. Buy it because once that rally rotation happens, I think it's a rip-your-face-off rally in software.

[00:03:43]Before I let you go, waiting for SpaceX.

[00:03:45]In the meantime, you know, you you do like other space names, right? You like ASTS, uh and just talk a little bit about this cuz this XPEV, I'm in, I'm down, and I want to hear something good.

[00:03:57]>> Well, again, the valuation came down a little bit on that. I think it's good value, but I want to hit on these two specifically. These have been rock stars. Teradyne, I think it was a 3% weighting, turned into about 8% weighting in our portfolio. AST SpaceMobile, we bought it at 40 bucks.

[00:04:08]It's at 125. We aren't selling because of the SpaceX IPO around the corner.

[00:04:12]Starlink's about a 1.2 trillion-dollar that $2 trillion valuation. This is a 35-40 billion-dollar company. What I think's going to happen is almost a mean reversion where SpaceX maybe comes down.

[00:04:21]I think this goes up to a $100 billion market cap. It probably is going to go to 200 bucks at some point in our opinion. Even the valuation >> Right. it's a momentum stock. Liquidity has to remain strong. You know, it could get hit pretty hard, but I think the as long as liquidity remains, it stays.

[00:04:33]>> you're right. I got subscribers in it, my man. Good stuff, Lou. Good stuff.