• In early February 2026, Braze came under pressure as concerns about artificial intelligence reshaped investor sentiment toward traditional software-as-a-service and marketing software providers.
• What stands out is how quickly AI-related worries and shifting analyst views have influenced perceptions of Braze’s competitive positioning in customer engagement software.
• Next, we’ll examine how this AI-driven shift in sentiment is affecting Braze’s investment narrative and longer-term appeal.

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What Is Braze's Investment Narrative?

To own Braze today, you’d need to believe that customer engagement software remains essential and that Braze can turn its growing US$693.4 million revenue base into a more efficient, eventually self-funding business. The core near term catalysts still hinge on execution against its FY2026 guidance, adoption of recent Forge 2025 enhancements, and traction for BrazeAI Decisioning Studio, especially via Google Cloud Marketplace. The early February 2026 AI-driven selloff and the cluster of price target cuts mainly affect sentiment and what investors are willing to pay for that story, rather than the underlying roadmap, but they do sharpen the biggest risk: Braze is unprofitable, forecast to stay that way, and now finds itself judged more directly on whether its AI offering is strong enough to defend margins and pricing power.

But that unprofitable profile, in a market suddenly fixated on AI “moats,” is something investors should be aware of. Despite retreating, Braze's shares might still be trading 43% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community span from about US$31 to a very large figure, underlining how far apart individual views can be. Set against the recent AI-driven derating and Braze’s ongoing losses, that spread invites you to weigh both enthusiasm about the product set and the risk that profitability remains out of reach longer than the market is willing to tolerate.

Explore 5 other fair value estimates on Braze - why the stock might be a potential multi-bagger!

Build Your Own Braze Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Braze research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Braze research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Braze's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.