Artificial intelligence continues to rebuild its investment environment, with certain software companies showing growth with or without the tailbone of AI adoption. These companies are trading at the bottom of the historic valuation double, making them an attractive opportunity, according to one technology analyst.
BNN Bloomberg spoke with Gil Luria, Head of Technology Research at Da Davidson. He said these companies are well positioned to benefit from AI while maintaining a strong fundamental.
Key takeout
- AI adoption is driving the demand for tools to organize, analyze and monitor data.
- Monday.com leverages AI to expand work collaboration and customer management capabilities.
- Snowflake concentrates structured and unstructured data to enable effective AI deployment.
- Datadog benefits from monitoring AI-driven infrastructure and serving AI-Native companies.
- Each share is traded at the bottom edge of the historical valuation range, creating a potential entry point.
Read the complete transcript below.
Andrew: Hot pick time. Our guests chose three names to call ideas in “Brayer Growth No.” He says these companies trade at affordable prices. Yes, they benefit from AI growth, but without it there is also a strong expansion prospect. Joined by Gil Luria, head of technology research at DA Davidson. Gil, it's always great to see you. Can we start with your first idea? I saw an ad on the Toronto subway today – Monday.com, a working collaboration software company. Please tell me about that.
Gil: Monday.com is a leader in Work Collaboration software and is actually entrenching the SME community. They want workflows and collaborations, and Monday will provide it. It also helps you organize your data into a unified schema. This means that you can provide customer operations and customer relationship management software. This has recently grown the 20% range for those in their mid-20s. However, it is trading at 25x cash flow, the lowest multiple ever traded.
Andrew: Let's move on to the next idea: Snowflake, Analytic Database Software Company. Many companies are overwhelmed by data. Does Snowflake help with that?
Gil: That's right. Snowflake is now the default if you want to organize your data in the cloud so that you can run reports. Even before AI, it was growing in the 20% range. Today, with more applications being created by AI, the need to centralize data is becoming even greater. Revenues have accelerated to the 20s. Essentially, it's snowflakes, Databricks (to be released later this year), or hyperschools. As AI grows, there will be a growing demand for snowflakes.
Andrew: Finally, DataDog, an observability software company. Older software is often undocumented and can break the entire system. Datadog helps to monitor applications that are particularly important as AI grows.
Gil: that's right. Same story as Snowflake. He's already grown in his 20s and is doing well by monitoring his software and infrastructure. With AI, you have more software and more complex infrastructure, which accelerates your DataDog revenue. Many native AI companies are customers including Openai, adding only 2-3 points of growth. That's why AI drives revenue in two different ways with DataDog.
Andrew: Datadog has bounced back that low since the beginning of this year. It appears they have escaped concerns about the unpredictability of AI in software.
Gil: That's right. In the case of DataDog, AI is purely positive. No new competition will emerge for AI, and Datadog has gained a big lead in serving AI companies, so it continues to grow at these rates, earning double revenue over the next three years.
Andrew: And snowflakes? Do you think it's the same thing?
Gil: absolutely. Today, businesses are scattered with data everywhere. If the data is not in one place, AI tools cannot be widely used. So businesses are moving their data to Snowflake, allowing them to do AI analytics, report, train and storage.
Andrew: It's interesting. As customers, we may end up dealing with more AI agents rather than people. Are businesses responsible for what AI does?
Gil: They have to. The responsibility is still with the company. Last year there was an incident in which airline bots promised a full refund despite not being worth it. The company had to respect that. The good news is that these tools are getting better and reducing mistakes. Companies are learning to install guardrails. You can see that there are more customer interactions with AI and fewer robots voices, but that can be a bit unsettling. Still, it is often faster than waiting for a representative to be held.
Andrew: It was Air Canada in February 2024. The chatbot misled customers with its bereavement fare policy. The airline claimed that was not the case, but the customer won in a small claims court. The last question is Gil. Harvard Business Review has published a story about the new term “Workslop.” This is content generated by employees using AI prompts, often of poor quality, and others waste fixed time.
Gil: Yes, it's a new challenge. AI amplifies. If you're good at something and use AI a lot, it will make you better. If not, it makes things worse. Remember the first Captain America movie? The serum made Steve Rogers Captain America, but turned the red skull into a threat to space. AI works the same way. It is used often, so we are very productive. It is used poorly and produces waste.
Andrew: Amazon is already full of books generated by AI. The same thing may be happening in music.
Gil: that's right. Expect streaming platforms to follow. Netflix, for example, can use AI to combine elements of the show we've already enjoyed into a new series designed to directly appeal. Start watching media from a large number of customers. There are slops, but AI can also generate engaging content tailored to individual preferences.
Andrew: Thank you very much, Gil. Gil Luria, Head of Technology Research at Da Davidson.
| Disclosure | Personal | family | Portfolio/Fund |
|---|---|---|---|
| mndy | n | n | n |
| Snow Nice | n | n | n |
| DDOG NASD | n | n | n |
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This BNN Bloomberg summary and transcription of an interview with Gil Luria on September 25, 2025 has been published with the support of AI. The original research, interview questions, and added contexts were created by BNN Bloomberg journalists. The editors reviewed this material prior to its publication to ensure accuracy and compliance with BNN Bloomberg editorial policies and standards.
