Wealth Management Inc

Burke Wealth Management, in its first-quarter 2026 investor letter, said enterprise software stocks including Snowflake have been hammered by fears that AI will replace legacy subscriptions, despite strong earnings and revenue acceleration forecasts. The firm noted that valuations are at 10-year lows and that the market is not distinguishing between single-solution products and platform companies. Snowflake shares closed at $230.41 on June 23, 2026, with a one-month return of 31.47% and a market capitalization of $79.86 billion. Burke Wealth Management's Focused Growth Strategy returned -10.6% in the quarter, underperforming the S&P 500's -4.3% decline.

Burke Wealth Management expressed concerns about CrowdStrike Holdings in its first-quarter 2026 investor letter, as enterprise software stocks face pressure from AI disruption. The firm noted that enterprise software valuations are at 10-year lows and that the prevailing view is AI will replace legacy subscriptions, with stocks falling 5% on new AI tool releases. Despite CrowdStrike growing operating profit over 25% in 2025 and beating earnings estimates, the broader market has not differentiated platform companies like CrowdStrike from single-solution peers. Burke Wealth Management is consolidating around best-of-breed platforms including CrowdStrike in cybersecurity, alongside Snowflake and ServiceNow, to navigate the environment. The fund returned negative 10.6% in the quarter, underperforming the S&P 500's negative 4.3%.