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XNTK: Technology Dashboard For October 2025

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  Published in Science and Technology on Saturday, October 18th 2025 at 12:19 GMT by Seeking Alpha
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XNTK Technology Dashboard Signals Continued Resilience Amidst Macroeconomic Headwinds

The October edition of Seeking Alpha’s XNTK Technology Dashboard, authored by Daniel Shvartsman, provides a detailed analysis of a proprietary model designed to identify undervalued technology companies. The dashboard, built and maintained by XNTK (formerly known as New Tech Network), aims to navigate the complexities of the current market environment – characterized by high interest rates, persistent inflation, and slowing economic growth – by focusing on companies exhibiting strong fundamentals and attractive valuations. This analysis summarizes the key findings and methodology underpinning the October update.

The XNTK Dashboard Methodology: A Refresher

Before delving into the specifics of the October report, understanding the dashboard's core principles is crucial. The XNTK Technology Dashboard isn’t a simple stock screener; it’s a dynamic system that combines quantitative and qualitative factors to assess technology companies. It assigns scores across several categories including Growth, Profitability, Financial Health, Management, and Valuation. These scores are then aggregated into an overall "Dashboard Score." The model prioritizes companies demonstrating consistent profitability (or a clear path towards it), strong free cash flow generation, and reasonable debt levels – characteristics deemed essential for weathering economic downturns. The dashboard also incorporates qualitative assessments of management quality and competitive positioning.

October Dashboard Highlights: A Narrowing Field of Opportunities

The October update reveals a continued narrowing of opportunities within the technology sector. As Shvartsman notes, “the number of companies that look genuinely attractive has shrunk.” This reflects the ongoing impact of higher interest rates which significantly discount future earnings and compress valuations across the board. The dashboard currently identifies 23 stocks as "Attractive," down from previous months.

A key observation is the increased importance of profitability in the current environment. Companies previously considered promising based on high growth potential alone are now facing stricter scrutiny due to their lack of consistent profits. The model’s weighting towards profitability has intensified, effectively filtering out many speculative investments. The dashboard emphasizes that “growth without profit is a liability” in this macroeconomic climate.

Top Picks and Notable Changes

Several companies consistently rank high within the XNTK Dashboard. CrowdStrike (CRWD) remains a top holding, benefiting from its strong position in the cybersecurity market and consistent revenue growth. The dashboard acknowledges CrowdStrike’s premium valuation but argues that its robust growth trajectory justifies it. [ https://www.crowdstrike.com/ ] provides further information on their offerings and financial performance.

Datadog (DDOG) also maintains a high ranking, lauded for its expanding platform and strong customer retention rates. [ https://www.datadoghq.com/ ] details the company’s observability solutions. The dashboard highlights Datadog's ability to integrate various data sources, making it an increasingly valuable tool for businesses across industries.

MongoDB (MDB) continues to be viewed favorably due to its leading position in the database market and expanding cloud offerings. [ https://www.mongodb.com/ ] showcases their database solutions. However, the dashboard notes that MongoDB’s valuation remains relatively high compared to other holdings.

The October update also saw some notable changes. Palantir (PLTR) was removed from the Attractive list. While Palantir possesses unique capabilities in data analytics and government contracts, its volatile performance and uncertain profitability trajectory led to its exclusion. The dashboard's focus on stability and consistent cash flow made Palantir a less suitable candidate given current market conditions. [ https://www.palantir.com/ ] offers more information about the company’s operations.

Sector-Specific Observations & Risks

The dashboard's analysis extends beyond individual stock picks, offering insights into sector trends. Software remains a core focus, but within that category, companies demonstrating resilience in enterprise spending are prioritized. Semiconductor stocks, while potentially benefiting from long-term demand drivers like AI and electric vehicles, face near-term headwinds due to inventory corrections and macroeconomic uncertainty.

The report acknowledges several risks. A significant deterioration in the economic outlook could negatively impact even the most fundamentally sound technology companies. Rising interest rates pose a continued threat to valuations. Furthermore, unexpected regulatory changes or increased competition within specific sub-sectors could disrupt growth trajectories. The dashboard emphasizes that its model is not foolproof and requires ongoing monitoring and adjustments.

Conclusion: A Cautiously Optimistic Outlook

The XNTK Technology Dashboard’s October update paints a picture of a technology sector navigating challenging conditions. While opportunities remain, they are increasingly concentrated among companies exhibiting strong profitability, financial health, and management quality. The dashboard's narrowing list of "Attractive" stocks underscores the importance of selectivity and disciplined investing in the current market environment. The model suggests that while the long-term prospects for many technology companies remain positive, near-term volatility is likely to persist, requiring a cautious and data-driven approach to investment decisions.