Investors may be hesitant to put fresh money into stocks now as market volatility increases. The CBOE volatility index is one of the most used indicators to measure market risk and investor sentiment. It recently rose above 20 and briefly approached 28, its highest level of 2026 so far, driven in part by the ongoing conflict in the Middle East.
During such uncertain periods, investors prefer safer assets over growth stocks. However, all growth opportunities should not be overlooked. While software stocks are struggling now, Braze (BRZE) could be a great buy-and-hold opportunity for years to come.
Braze is a cloud-based SaaS (software as a service) company that provides a customer engagement platform. It helps businesses send personalized messages to customers across channels such as mobile push notifications, email, in-app messages, and web notifications, using real-time customer data and analytics.
BRZE stock is down 41% year-to-date (YTD), but analysts predict a triple-digit rise in 2026.
Although many software stocks are struggling right now due to fears of AI disruption and falling valuations, high-quality platforms with strong customer engagement capabilities like Braze may emerge as long-term winners. Here are three reasons supporting Braze’s bullish argument:
Braze continues to grow rapidly even as many SaaS companies are slowing down. In the third quarter of fiscal 2026, the company reported $191 million in revenue, a 25.5% year-over-year increase. The company is also adding customers at a rapid pace. Total customers reached 2,528, a 14% year-over-year increase, while the number of large customers spending at least $500,000 annually increased 29% to 303 accounts.
Additionally, remaining performance obligations (or RPOs) totaled $891.4 million in the third quarter, of which management expects to recognize $572.7 million in less than a year. This shows that demand for Braze’s customer engagement platform across all industries and geographies remains strong.
Beyond revenue growth, Braze is also improving its profitability. The company has now reported four consecutive quarters of adjusted operating income and six consecutive quarters of adjusted net income. Braze also generated $18 million in free cash flow in the third quarter. The company expects to report earnings in the fourth quarter, with full-year adjusted earnings in the range of $0.42 to $0.43 per share, up from $0.17 per share in fiscal 2025. This shift toward profitability reduces the risk associated with most high-growth technology stocks.
