Investor's Edge with Gary Kaltbaum - SOFTWARE WITH A CAPITAL S [08.27.2026]

Episode Date: August 27, 2026

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Investor's Edge with Gary Coltbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Cultbaum. And welcome once again to Investors Edge. I'm Gary Coltbaum, your host. A thanks for being with us today. Glad you here, ladies and gentlemen. Happy that you are listening.

I don't even know what day it is. I know it's Thursday. It's the 27th. August. We're almost in September. I do know it's 2026. Hey, hope you're having a good day. As always, we're going to have some serious talk about everything that affects you.

We'll do the markets, the economy, your job, your industry, the Morlocks in D.C. That love, just love playing with our lives. And you know what I mean. We'll do scams and shams, corruption, self-deafes, dealing. You name it. We'll cover it. And if you do not get this radio show in your city, we'll post it at GaryK.com. We will post it at our X feed also. And if you don't follow us on X, you should. And if you'd like to email us, just be nice. We'll be nice and respectful back, as I always say, unless you like Hamas, rob the bank today, are racist or, you know, what the hell we're talking about.

In no particular order today, oh, we're going to talk NVIDIA, but I must tell you, for me, NVIDIA is not the story today. It's software stocks. You know the software stocks that had crashed that we deemed a low was put in? Well, today, they just. blasted upwards on earnings reports and things up in sympathy. You know, if one goes up big in software security, another will go up big in software security. Quite the day.

A lot of jello moving on the plate. Who knows what tomorrow brings? I will be very pointed in some thoughts and whatever else. How's that? Okay. I guess we start with Envidia. Envideo was up as much as... I think when we finished the show yesterday, Envita was down in the aftermarket.

And then they did something they never done before. They gave what's supposed to happen in the next year. And they said something about 70% up. That's a big number. That's a real good number. So, Nvidia at the close today finished up $18.30. Let me make sure the exact number. 227.31.

I have it up $17.31 for the day. 8% for a $5 trillion company. That's amazing. That's amazing. But I also must tell you, until about the last 10 minutes today, there was no pin action off of Nvidia. What do we mean by pin action?

Well, it's a semiconductor. On top of that, all the talk of they are the artificial intelligence thing of a bob. Artificial, Nvidia, you know that, right? AMD was down today, Micron was down, today, Sandusk was down, today sand disk was down today sea gate was down today western digital was down today sienna was down today caterpillar was down today uh symbol fn was down today uh fix was down today i can go on and on a lot of things were down today more asml was down today klac was down today mks i was down today applied materials finally finished up today after being down most of the day, but hardly up.

What the hell's going on? That there was no pin action off of that. But by the way, again, in the last seven minutes, the semiconductor index, gee whiz, went from, one, up 70 points. It was up 200, finished up 270. Good for that. And I noticed that at the end of the day. and that's fine and dandy. What's going on there?

Here's my answer. I don't know. All I can tell you is that there was no pin action off of what usually has pin action. And that's something of note. As you know, we have been telling you under no one, have been absolutely crushed, absolutely crush,

absolutely crushed. Some of them bounced, but really did not much. do much for me. That's the story. And we'll see what tomorrow brings. I do know Marvell is reporting after the close. We'll see what that decides to do. But I just want to make sure, again, that you know no real pin action off of Nvidia today. No real pin action. No real pin action. and I even said to my peeps that, boy, these things look shortable, but we're not going to short them for a simple reason. Who knows if they gap them tomorrow?

That said, I'm just letting you know there was no pin action today. So let me get into what some are saying. And to be clear, I'm going to state a couple of things that others are saying. Number one, accounts receivable grew by 55% sequentially, even though revenue grew 18%. That means it's growing three times faster than revenue. Normally a red flag, normally. Days sales outstanding jump from 45 to 60 days. That means these really great customers are taking longer to pay their bills.

Debt and equity investments grew by 36 billion, up 126% quarter over quarter. That means Nvidia is giving their customers more money than ever, yet it's taking them longer to pay. That's all. Just wanted to tell you that. Those are facts. I checked them out. Whether or not they're meaningful, I don't know. Normally they are meaningful.

I have other things about just a ton, a ton of bucks. This is from Nvidia themselves. In August the 26th, we entered into guarantees capped at $105 billion to provide credit support on land power and shell build out with affiliates of a company called SB Energy Group on behalf of a customer, which is an affiliate of Open AI group related to leases for approximately whatever, whatever, give a gigawatts. Credit support of $105 billion. I'm just letting you know the market didn't give a crap what I just read. to you. We're going to keep paying attention to all these things. I'm going to do a deep

dive with some people that are 10 times smarter than we on the weekend about the booking of revenues on lent money from the producer of that revenue. And again, we're not here to throw cold water, we're here to deal in reality and be in recognition of facts. F-A-C-T-S. But it was up right now with aftermarket up 17 bucks today to 227. Dang, that surprises me. It was down in the aftermarket until they mentioned the 70%, but is that 70% based on them lending? and people spending, I want to know these things. We'll know in time. Big story today was Nvidia.

We did not buy the stock. And it is just under where it was nine days ago and still decently under the highs of May. Up next, software. This is the one only Investor's Edge. Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show Investors Edge. We're not just handsome radio people. We manage investors' money for a living,

specializing in fee-based discretionary money management. No big commissions, just a fee on the assets that's managed. We also provide a full range of personalized services, including retirement planning, fixed income, and educational needs, all to assist you in achieving your financial goals. Understanding not all individuals have the same needs, we'll carefully evaluate your personal goals to determine a proper investment strategy.

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Hey, this promises to be fun. Investors Edge. The last bastion of quality programming. With Gary Coltbaum. It doesn't get better than this. My name is Gary Brian, Coltbaum, by the way. I think I'm going to change my name to Gary America,

Colt Bomb. Just letting you know. We're just going to state what the president did today. He signed a decree to change Lake Ontario to Lake America because he's pissed off at Canada. I have to tell you, he praised,

he was asked about Russia, giving things to Iran to fight us, and his only answer was, we do the same thing, and he praised North Korea's Kim Jong-un today while ripping on Canada today. This dude is nuts. and now with a decree, which I don't think is legal, changes the name to Lake Americans instead of Lake Ontario.

We got more than two years left of this. I hope for the best. I really do. I hope for the best. I really do. The numbers he put out today on Canada as far as trade were all made up lies. All made up. Makes no sense.

And in case you don't know, our trade deficits, whatever we have is because we buy a lot of crap. Not because anything's bad. We are a $30 trillion economy. Number two, I think is China at 19. We buy a lot more crap than everybody else because we are a bigger economy than anybody else. That will cause trade deficits. I have to tell you, the president is so economically illiterate on this. I don't even know where to go with this.

And of course, the tariff part. Insanity. By the way, I'd say this to his face. And then, of course, I'd get audited by the IRS or something or the Department of Justice would come after me. I don't know. By the way, I really am wishing him well. I want to see great things, but he's nuts.

He is concentrating on credit. We won the Iran War. No, we didn't. How do you say we won? We have 18 dead, like 5 to 700 people injured, maimed. Oil is still $84 to $89 depending what you're looking at. What the hell is going on here? Just say anything.

And again, I have to repeat myself just in case. I wish them well, but I've got to be honest and unbiased on all this crap. software. By the way, I know you all agree with me. Just a big wow. Software. So let's talk about that. Into about April, software brutal bear market led by Oracle, which by the way is still down 55, 60 percent from the highs. Microsoft, which is rally pretty, pretty, decently. I think it's only down about 12% from the highs. SAP, German software name, ripped, but that's been rallying back up too, and others. Salesforce.com up $46 today. $46. Huge move. By the way, that's a Dow name. Forty-six comes out to about 300 Dow points. Awesome.

but what's interesting is we're always looking at the innards and I must tell you there aren't I'm going to read something to you if you don't mind as you know we don't follow too many people in this industry but there's one there's one of the people I follow in technology is a gentleman by the name of Fred Hickey H-I-C-E-Y you can Google him he has a newsletter that comes up every month and by the way he doesn't know I'm mentioning him I don't get a dime mentioning his newsletter. He doesn't even, I'm just a subscriber that pays, I think I pay 150 a year. I think he's very smart with technology. So he put out a social media post and I'm going to just read it to you. An analyst report on Salesforce numbers. Something called NNAOV was the strongest in four

years and significantly outpaced AOV growth. So I had a look up in an AOV meaning. And basically what it is is net new annual order value. An AOV, well, it's supposedly a financial metric used in software businesses like Salesforce to measure true new revenue growth. And then there's AOV. average order value which measures the average amount of money a customer spends each time they place an order on an app or online store. Let me continue.

And then there's something CRPO. I know, I know, I know. So I'm doing CRPO meaning in finance while I'm here. And CRPO is current remaining performance obligation, which is a minimum. metric that measures the portion of a company sign multi-year contracts that will turn into recognized revenue over the next 12 months and is commonly used by a company like Salesforce.com, which is subscription-based. But of course, those subscriptions could go by the wayside.

So I'm reading into what Hickey is quoting. And he says, whatever happened to just sales and earnings. and balance sheet changes. He goes on to say that salesforce.com don't look so good. Revenues were 10.8 year over year, but includes price hikes and inflation. Income from operations were down slightly year over year, and the big gain in the earnings per share was entirely due to $2.6 billion of gains on strategic investments. Debt nearly quadrupled to $39 billion.

Total assets declined. Total liabilities jump 34%. And stockholders equity plummeted 35%. So how is the stock up $46 today? You know, my answer is, I don't know. We're just letting you know we do a lot of fundamental work also, but we let the market be the guide because you never know what it's looking at.

But we're always keeping in our file manager because we know corporate America really uses, I don't want to call it accounting chicanery, but we'll call it accounting legalese. They made it a lot easier throughout the years. Up next, the rest of the software, a big wow.

This is the one only investors edge. I'm listening to. America is talking. Investors Edge He's got to be pleased with that The crowd is just on his feet here He's a Cinderella boy With Gary Colbomb

It comes highly recommended You're gonna feel better if you talk to him Duhda da da da da da Doa da da da da da da da Hey yo Okay You ready A crowd strike

This is the software security Crouch strike recently dropped from 233 down to 182. By the way, in 123, 4, 5, 6, 7, 8, 9. 233 to 182 in nine days. It closed at 228 today. Little under 228, up 30, almost 39 bucks. 38 bucks. Got it all back on their earnings report.

Just letting you know. Software security. Earnings are up 33%, revenue up 26%. That's CrowdStrike. In sympathy, Palo Alto Networks, that stock had just dropped from about 400 down to 328, but closed yesterday at 340. Up $42 today. Just in sympathy.

They report earnings in five days. Wow. Salesforce up 46. Wow. We're not done. In sympathy. How about ACTA? They reported earnings.

You ready? Up 28%. $38 up to $172. The stock had just dropped from 156 to 128, but closed yesterday around 135, closed at 172 today, on their earnings report. Guess what Octa does? Software security. Synopsis, computer software. Opened flat, excuse me, opened up a little bit, was down in the aftermarket, $10, but opened up about $15,000. finished up, $54.04 today to $464. But earnings only up 15%. But when all and said and done,

the only thing that matters is outcome. Viva system symbol VEEV. Well, that is medical software they say. They reported earnings that were up only 18%. 18's good, you know, but nothing's spectacular. And revenues up 18, nothing spectacular. The stock was up $37 today, up 15%. At one time today was up about $51, but still up $37. In sympathy, symbol net, up $8% or $23. In Sympathy, Q-L-Y-S, up 6 and 3 quarters percent or $12. In-sympathy, Snowflake, which reports next week, up 4% or $13 in change. In-sympathy, Twilio, up 5.6% or $13. In-sympathy, symbol, team into new high ground, up 10% or $17.

In sympathy, Fortnite, that's software security, up almost 10% or $15. In sympathy, Frog, J-Frog, breaks out up 12% or $11 today. In sympathy, I don't even know what to, MongoDB, symbol MDB, up 8.5% or $34 today. In Sympathy, Palantir up 4 and 3 quarters percent or $8 today, breaking above a little range. In sympathy, and let's see how this does in the after market. Oops. So in sympathy, I was about to say RBRK was up 11% today or about 11 bucks. It's down 10% in the aftermarket on its earnings report.

Uh-oh. Well, that's not so good. But all that and sympathy. And then you have the ETF. Are you ready? Symbol bug. Bug. And you know what that is?

Cybersecurity bug. Up 10.4%. Or how about hack cybersecurity? Up 8% today. Or the main software ETF, IGV. up 7.7% today. Or how about the cloud guys? C-L-O-U up 5 and a quarter percent

or W-C-L-D up 7.5%? Let me just state for the record, dang, it was a very good software day on gaps to the upside and sympathy moves. Wow. Just reporting. We'll see if they follow through. I take that back.

A few of them open, kept moving. So they actually follow through today. We'll see how they play from here. And then some of the ones off the lows, service now, breaks above a stair step today, up 10%. Workday was up not only 1%, but a problem with workday. I've got workday closed at 193 in the aftermarket. It's 182 because of earnings. And Autodesk was up nicely today, but that's down $19. in the aftermarket. That's a software name also. So three software names are down in the aftermarket,

but I don't think that's really going to affect things too much tomorrow. And I found one software name, ESTC. You ready? Closed at 84. I got it at 97 in the aftermarket. So one good one. And video was fine. But no real pin action.

It was a good software day today. and on earnings reports. Even the weakest were a pretty darn good. Yes, we got a few that are gaping down tomorrow. We'll see how it goes. I don't think it's a sweat. Auto desk close it at 270. I got it at 248 in the aftermarket.

So that one's getting hit also. Again, I don't think that's a big biggie. tomorrow's Friday, it'll be another day. It was a great software day today. My, how things have changed. And we will be watching the Nvidia story very closely going forward. I'm letting you know personally, I'm not thrilled with Nvidia in their earnings report talking about $110 billion of here. Now buy our crap.

And that's really what they said. To me, the accounting business is too nice. You know what the accounting business should be for corporate America? It should be doubting. Prove us. And this whole circular financing thing, it really killed the goose many years ago. Let's hope. The same does not happen with this.

And again, we're not here to throw Cold War or anything. We're stating facts. We'll see how tomorrow goes. Very interested in tomorrow. Not as much today. But NASDAQ up 411, NASDAQ 100 up 417. I got to tell you, I have the chunk of the cues. It broke the 50 days ago.

And I was like, crap right back above today. So I feel a little bit better. But for the record, the NASDAQ, The NASDAQ 100 is just sitting in a big range at this juncture. The NASDAQ 100 needs to break above 30,195 to get me feeling much better. That's still 550 points away. And there's a little bit about your software heading into tomorrow with some warts in the aftermarket.

except for ESTC. But what else do we got for you? Yields were up a little bit today. Gold was up a buck. Crypto had another good day. Remember, we thought last Wednesday was a bottom in crypto, and boy, it's had a very good move already. And about three weeks ago in gold,

lesser accent silver, gold's in pullback mode. It looks pretty constructive. Up next. What else are we seeing? this is the one only Investor's Edge You're listening to What are we waiting for?

What are you waiting for? One, two, ready, go Action! Investors Edge With Gary Coltbaum Welcome once again to Investor's Edge. Yes, I will be known as Gary America Coltbaum.

Hey, if the president can change Lake Ontario to Lake America, by the way, I don't think he can. But I guess he can just, He's just going to name anything. I don't even know what to say. He is destroying the chances of the Republicans in November. And do you know how I know this?

The emails I get from people that have voted for him, the people I know that are deep MAGA, they are so exhausted, I can't even begin to tell you. I don't think they're going to be showing up for the election in November They're just you know and now saying you won the Iran more When everybody knows you did not And just the things that come out of the mouth every day that are just It's like me

Getting in front of a TV and a camera And it's raining on me and saying it's sunny out Not to mention he calls women piggy and all kinds of other things. He is going to be crippling the Republicans. And I got to tell you, I would not be surprised if the Marxist Party gets the Senate at this juncture. That would be.

And by the way, it'll lead to 2028 also, to anybody who runs, to anybody that runs. And I have to tell you, I take no joy. but when you coddle Kim Jong-ung-Gung-in-N-North Korea Vladimir Putin or Russia while pissing all over Canada I'm sorry

that is insanity insanity and anybody and I know people in politics no matter what somebody does or says they're all for them and they're going to tell me to go screw myself

but if you take you Take a step back and just think clearly without a bias. Man, oh, man. And I'm looking at some poll numbers. This guy, Paxton, is losing in Texas. They put up this guy, Paxton. My goodness gracious. How the hell do you put some of these people up?

The Lindsay Graham's sister, they put her up and she won the primary, so she's going to be up in November. She couldn't even answer about Taiwan and China in a debate. This is what you want? You know how the Republicans complain about DEI? She's classic DEI. It's so weird to watch because I'm independent. I used to be Republican until Republicans I watched what they were doing.

I said, I'm not in any party. It's sad to watch. I want to get back to balance budgets or close to them. Low taxes. And we don't have low taxes if we have tariffs. Less regulation. No self-dealing and corruption from the White House on down. No insider trading.

In other words, they get arrested. if they do the things we get arrested for. You know, shouldn't that be the way it is? A closed border, which Trump gets an A-plus-plus for a-a-plus. A-plus-plus. Deportations, but not crazy deportations. They're deporting 70-year-old men that have been here 30 years working,

having families doing everything right, And by the way, have green cards, have certain eligibility to get. And they're sending them away, not to their own country, but to other countries. And putting them in handcuffs. And just so you know, come November election, it's going to be all on video. The Marxist party is going to be playing this crap left and right. And unfortunately, all the Republicans in D.C. have our, lining up behind it because they have no choice.

Because if you do anything against, you're excommunicated. And he's got major league power in the party itself. But when you go to general elections, it ain't party anymore. It's the whole kitten caboodle. And I got Newsfeer. We're going to have Marxists running the house and very good chance. And when I say Marxists, they are Marxists running the Senate. This is a gargantuan, unforced error.

And there's nobody to stop them. Nobody to stop them. You got some of these other miscreants talking about him running in 28. I got a newsfea. That loses votes. We don't want the Marxist party running anything here. but they're licking their chops now. They're licking their chops.

It's going to be one hell of a two years come January kids. One hell of a two years. Anything else to go over. Retail stocks continue to act terribly. Burlington down 24 bucks today on earnings. And that's right after Dick's sporting goods just crashed on their earnings. And I can mention some others but not good. Consumer stocks acting very poorly from cruise lines.

the airlines, the housing and housing related to hotels, just bearish. Just letting you know. And that's all consumer stuff to be watched. You all have a great evening drive carefully. Hope I didn't harsh you, budge. Buzz? Yeah, budge. And when you get home, do like we do, make sure you hug your family, hug your children.

They will feel better. You will feel better. I promise they will be well. Again, until tomorrow. Peace out all. Good night. This has been Investors Edge with Gary Cultbaum on BizTalk. To listen to past episodes or to get in contact with Gary, go to Garykay.com.

That's GaryKay.com.