Software stocks are soaring, outpacing the S&P 500 as businesses embrace digital tools to slash costs—but AI’s rise is exposing weaknesses in companies with shaky customer loyalty. Salesforce and Okta are seeing sluggish billings and sales growth, though both have improved margins. Meanwhile, Upstart is exploding with AI-powered loan growth, expanding into credit cards, and poised to hit free cash flow next year—making it a standout play with sky-high potential.
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