“Training wheels capitalism” has entered the chat.

A Wall Street Journal analysis explains how President Trump is reshaping the business landscape through a form of state capitalism, using equity stakes, revenue-sharing, and regulatory leverage to steer corporate behavior. Companies that align with Washington’s priorities often receive favorable treatment on tariffs, mergers, and access to foreign markets.

But what’s easy to miss is how this changes where value hides.

Markets may overprice political favorites while quietly discounting companies exposed to regulatory friction. Historically, these moments create gaps between narrative and fundamentals. For value-focused investors, that mismatch between politics and price can quietly set the stage for future reversals.

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Braze Inc. $BRZE ( ▲ 2.65% ) spent much of the year stuck in reverse.

Slowing growth fears and uneven free cash flow pushed the AI-powered customer engagement platform toward long-term lows, and analyst confidence faded with it.

That narrative cracked after the company’s fiscal Q3 report. Results landed well ahead of expectations, stopping a steady drip of estimate cuts and forcing Wall Street to reassess whether the selloff had gone too far.

Since then, shares have rebounded by tk%, a move many analysts see as confirmation that the bottom is in. For a software name still growing at a healthy clip, that shift in tone matters.

This was not a cosmetic beat. Revenue grew 26% year over year, clearing consensus by a wide margin and driven by renewals, deeper customer penetration, and steady new client wins.

Large customers continue to anchor the story. Clients generating more than $500,000 in annual recurring revenue rose nearly 29%, while subscriptions accounted for 95% of total sales. Net revenue retention hit 108%, signaling ongoing expansion from existing customers.

Margins are moving in the right direction too. While Braze remains unprofitable on a GAAP basis, operating income more than doubled year over year, cash flow turned positive, and free cash flow reached $18 million after burning cash in the prior year’s quarter.

Even after the bounce, many see unfinished business. The consensus price target implies tk% upside, and 21 of 23 analysts rate the stock a Buy. Institutional investors appear aligned, owning roughly 90% of shares and adding steadily throughout the year.

The near-term risk is consolidation after a sharp move. But with AI adoption accelerating and customer engagement budgets holding firm, Braze is no longer flying under the radar.

For investors who missed earlier AI winners, this setup may be worth a closer look.