Performing some rebalancing of the portfolio after recent quarterly results. My allocation to Confluent was lower than other positions. I wanted to increase that by rotating some funds out of S. I have written extensively about Confluent and think they have a lot of potential to capitalize on the demand for data to fuel new AI-driven capabilities. They are the only stand-alone commercialized data streaming provider, piggy-backing on the broad penetration of Apache Kafka. Their Cloud product is growing faster (89% in the last quarter) than overall revenue and will contribute almost 50% of total revenue by end of this year. Additionally, they are progressing to bring the Apache Flink product offering (from Immerok acquisition) to GA later this year. That should ultimately deliver an addressable market that could be as large as core data streaming.

The stock has appreciated significantly this month, so I am not adding too much yet. There was also some fall-out from their Investor Day, in which analysts concluded that management lowered their long term revenue guidance. The CFO simply committed to a minimum target for 30% growth over the mid-term, versus >30% at time of IPO. In the Q&A session, the CFO clarified that they could exceed the 30% growth rate, with AI, FedRamp and any macro improvement being catalysts. In this environment, I have no issue with some conservatism in a long term guide.