Opportunities in Software & Energy Tech
June 24th, 2026I wanted to share a few areas where I believe the market may be creating attractive long-term investment opportunities.
At PortfolioLab, we do not rely solely on pre-packaged models or broad asset-allocation strategies. We conduct fundamental research to identify businesses that we believe are misunderstood, undervalued, or positioned to benefit from long-term changes in their industries.
Two areas that currently stand out are select software companies and energy technology.
Select Software Companies
Many established software companies have experienced significant share-price declines as investors reassess the potential impact of artificial intelligence, slower technology spending, and whether their historical growth rates can continue. In several cases, valuations have fallen to levels not seen in years, despite these businesses continuing to generate recurring revenue, strong free cash flow, and substantial customer retention. While a lower valuation alone does not make a company attractive, we believe the broad selloff has created opportunities to purchase select, high-quality software businesses at prices that more reasonably reflect their risks, and in some cases, significantly underestimate their long-term earnings potential.
Artificial intelligence will affect nearly every software company, and I believe some businesses will face meaningful disruption. Products that are easy to replicate or lack strong customer relationships may become increasingly vulnerable as AI capabilities improve.
However, not all software companies face the same risks. I am particularly interested in businesses that have developed valuable networks around their platforms.
Salesforce, for example, benefits not only from its software, but also from a broad network of implementation specialists, consultants, developers, and technology partners who help customers install, customize, and operate the platform. Uber similarly benefits from an established network of riders and drivers. As participation grows, the platform can become more useful and more difficult for a competitor to replicate.
I believe companies supported by these types of networks may be better positioned to use AI as an advantage rather than be displaced by it. AI may allow them to improve their products faster, automate routine work, enhance the customer experience, and operate with less overhead.
Many established software companies also generate recurring revenue and provide systems that are deeply integrated into their customers’ operations. Replacing those systems can be expensive, disruptive, and time-consuming. In select cases, I believe the market is undervaluing these durable customer relationships, network advantages, and future cash-flow potential.
Energy Technology and SLB
Another company I find compelling is SLB, formerly known as Schlumberger.
Although SLB is commonly viewed as a traditional oilfield-services company, I see it more broadly as an energy-technology business. The company provides the equipment, expertise, software, automation, and data analytics that energy producers use to locate resources and produce them more efficiently.
Its digital tools help energy companies analyze reservoirs, optimize drilling, reduce costs, and increase production. Over time, I believe this technology component may become a larger and more valuable part of the business.
SLB may also benefit from several long-term trends, including continued global investment in natural gas and liquefied natural gas, the redevelopment of major energy-producing regions, and increased spending on energy infrastructure and production capacity.
The rapid expansion of artificial intelligence and cloud computing is also increasing the amount of electricity required by data centers. As utilities and technology companies work to add reliable, around-the-clock power generation, we believe natural gas will play an important role alongside renewable energy and nuclear power. Meeting that demand will require additional investment in natural gas production, processing, transportation, and power infrastructure. SLB does not typically build or operate the power plants themselves, but it provides the technology, equipment, and technical expertise producers need to discover natural gas resources, develop fields, improve recovery rates, and bring additional supply to market more efficiently. We believe rising electricity demand could therefore create another long-term source of investment for SLB’s customers and demand for its services.
The investment thesis does not depend solely on predicting short-term oil prices. It is based on the continued need for energy companies to invest in technology, infrastructure, and more efficient production. As one of the industry’s leading global providers, I believe SLB is well positioned to participate in that spending.
Important Disclosure: This communication is provided for informational and educational purposes and should not be construed as personalized investment advice or a recommendation to buy or sell any security. The securities discussed are examples of PortfolioLab’s current investment views and may not be appropriate for every investor. Investments involve risk, including the possible loss of principal. Forward-looking statements reflect current opinions and expectations, are subject to change and uncertainty, and are not guarantees of future results. PortfolioLab may hold, purchase, or sell securities discussed in this communication for client accounts.