Key Highlights

  • AvePoint was in focus after BMO Capital initiated coverage with an Outperform rating.
  • The company sells software that helps organizations manage, protect and govern data in cloud platforms, especially Microsoft 365.
  • Software stocks reached their highest levels of 2026 the same day, with Zscaler's CEO calling agentic AI its biggest opportunity ever.
  • The Russell 2000 slipped even as software names rallied, a sign the gains were concentrated in specific themes.

AvePoint (NASDAQ:AVPT) was in focus on Tuesday, October 6, after BMO Capital initiated coverage of the company with an Outperform rating. Initiations matter because they bring a new research team, new estimates and often a new audience of institutional clients to a stock, particularly a smaller company in the Russell 2000 that receives less attention than large-cap software names. The size of AvePoint's move on the day was not captured in the reports reviewed.

An Outperform rating means BMO expects the stock to do better than its peers or the broader market over its forecast horizon. The full reasoning and price target behind the call were not available in the sources reviewed.

AvePoint sells software that helps organizations manage, protect and govern data in cloud collaboration platforms, especially Microsoft 365. Its products cover backup, migration, compliance and data governance, areas that have drawn more interest as companies roll out artificial intelligence tools that depend on well-organized, secure data.

Software's Strong Session

The initiation landed on a good day for the group. Software stocks reached their highest levels of 2026. Palo Alto Networks (NASDAQ:PANW), CrowdStrike (NASDAQ:CRWD), Fortinet (NASDAQ:FTNT) and Zscaler (NASDAQ:ZS) all climbed, and Zscaler reaffirmed its guidance at an investor day, where its chief executive described agentic AI as "the most significant opportunity in our company's history."

Smaller software names also gained. monday.com (NASDAQ:MNDY), Asana (NYSE:ASAN) and C3.ai (NYSE:AI) rose as worries about AI disrupting traditional software businesses faded.

A Mixed Tape for Small Caps

Not everything followed software higher. The Russell 2000 slipped about 17 points to roughly 2,830, even as the S&P 500 set a record at 7,818.93 and the Nasdaq Composite closed at a record just under 27,600. Health care was the only sector in the red, and its weakness weighed heavily on small-cap indexes, where biotech and diagnostics names carry significant weight.

Interest rates offered some relief. The 10-year Treasury Yield eased to about 5.28 after touching its highest level since 2002 last week, and the two-year yield slipped to near 4.79. Growth-oriented software companies are often sensitive to yields, because much of their value rests on profits expected years in the future.

Earnings Season Approaches

The third-quarter reporting season begins in earnest next week, when big banks including JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) report on October 13. Software investors will be listening for commentary on corporate technology budgets and AI spending, which tend to filter through to companies such as AvePoint.

Other Brokers Following Suit Would Confirm Conviction

The next step is to see whether other brokers follow BMO's lead, and how AvePoint's own quarterly results, when they come, square with the more optimistic stance. On the macro side, the Fed's September meeting minutes and a $39 billion 10-year Treasury reopening are due Wednesday.