Shannon River Fund Management Exits JFrog Position
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy FROG?
Source: Fool
- Exit Transaction: On February 13, 2026, Shannon River Fund Management disclosed in an SEC filing that it sold 863,924 shares of JFrog for approximately $40.89 million, resulting in a complete exit from its position, indicating a potential loss of confidence in the company's future prospects.
- Stock Price Fluctuation: JFrog's stock has risen 37% over the past year but has fallen about 31% from a recent peak of nearly $69, reflecting market uncertainty regarding its future performance, which could influence investor decisions.
- Financial Performance: JFrog reported a year-over-year revenue growth rate of 25%, down from over 30% in 2022, yet management remains optimistic about profitability in 2026, suggesting strong performance in the cloud market could drive future earnings growth.
- Investor Perspective: Shannon River's exit could indicate a neutral or bearish outlook on JFrog's prospects, although the company's historical performance and robust growth potential continue to attract growth-oriented investors' interest.
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Analyst Views on FROG
Wall Street analysts forecast FROG stock price to rise
19 Analyst Rating
17 Buy
2 Hold
0 Sell
Strong Buy
Current: 47.610
Low
64.00
Averages
72.22
High
83.00
Current: 47.610
Low
64.00
Averages
72.22
High
83.00
About FROG
JFrog Ltd. provides an end-to-end, hybrid, universal Software Supply Chain Platform. The Company’s solutions include The JFrog Artifactory, JFrog Curation, JFrog Xray (Security Essentials), JFrog Advanced Security, JFrog Runtime Security, JFrog Distribution, JFrog Connect, and JFrog ML. JFrog Artifactory supports all software package technologies and can be seamlessly deployed across public clouds, multi-cloud, on-premises, private cloud, and hybrid environments. JFrog Curation understands package metadata, allowing companies to build policies around the entry or blocking of software packages into a company’s repositories based on multiple factors such as age, version number, security risk, release timelines, target environments, and more. JFrog Distribution provides reliable, scalable, and secure software package distribution with enterprise-grade performance. JFrog Xray continuously scans JFrog Artifactory to secure all software packages stored in it.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Shannon River Fund Management Exits JFrog Position
- Exit Transaction: On February 13, 2026, Shannon River Fund Management disclosed in an SEC filing that it sold 863,924 shares of JFrog for approximately $40.89 million, resulting in a complete exit from its position, indicating a potential loss of confidence in the company's future prospects.
- Stock Price Fluctuation: JFrog's stock has risen 37% over the past year but has fallen about 31% from a recent peak of nearly $69, reflecting market uncertainty regarding its future performance, which could influence investor decisions.
- Financial Performance: JFrog reported a year-over-year revenue growth rate of 25%, down from over 30% in 2022, yet management remains optimistic about profitability in 2026, suggesting strong performance in the cloud market could drive future earnings growth.
- Investor Perspective: Shannon River's exit could indicate a neutral or bearish outlook on JFrog's prospects, although the company's historical performance and robust growth potential continue to attract growth-oriented investors' interest.
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- Market Instability: After a prolonged period dominated by mega-cap tech, the market has entered 2026 on shaky ground, with the S&P 500 breakeven for the year and the Magnificent 7 stocks averaging a -7.3% return, indicating investor concerns about future profitability.
- Surging Capital Expenditures: As tech giants pour tens of billions into AI models, chips, and data centers, investors are increasingly worried about potential margin compression, even as companies like Amazon tout operational efficiencies and cost reductions.
- Small-Cap Appeal: Skepticism towards large tech firms is prompting capital to rotate into smaller companies, particularly those positioned as enablers of AI development, with Franklin Templeton suggesting that opportunities may lie with suppliers and adopters rather than the mega-cap leaders.
- AI-Resilient Stocks: Despite challenges faced by large-cap software firms, JPMorgan argues that the recent selloff has been too indiscriminate, creating opportunities in what they term
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- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
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JFrog (FROG) Q4 2025 Earnings Call Transcript
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- Coinbase Trading Volume Surge: Coinbase announced a total trading volume of $5.2 trillion in 2025, up 156% year-over-year, and despite missing fourth-quarter revenue expectations, its stock rose nearly 2%, indicating robust performance in the crypto market.
- Rivian Delivery Forecast Upgrade: Electric truck manufacturer Rivian expects vehicle deliveries for 2026 to range from 62,000 to 67,000 units, representing a 47% to 59% increase compared to 2025, resulting in a 14% stock price surge that reflects market confidence in its growth potential.
- Airbnb's Upbeat Guidance: Airbnb reported fourth-quarter earnings of $0.56 per share on $2.78 billion in revenue, falling short of analyst expectations, yet the company anticipates full-year revenue growth of at least low double digits, leading to a stock increase of about 2%, showcasing market confidence in its future growth.
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JFrog Set to Announce Q4 Earnings on February 12
- Earnings Announcement: JFrog (FROG) is set to release its Q4 earnings on February 12 after market close, with consensus EPS estimate at $0.19 (flat YoY) and revenue estimate at $138.09 million, reflecting a 19% YoY increase.
- Performance Beat Record: Over the past two years, JFrog has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, indicating strong performance in profitability and market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 18 upward revisions with no downward adjustments, showcasing robust market confidence in JFrog's growth; however, revenue estimates experienced one upward and one downward revision, indicating cautious sentiment.
- Market Outlook: Analysts at BofA suggest that JFrog, along with peers like Snowflake, MongoDB, and Datadog, is likely to rise following the end of the 'SaaSpocalypse', reflecting optimistic expectations for JFrog's growth potential in the evolving software landscape.
See More
Shannon River Fund Management Exits JFrog Position
- Exit Transaction: On February 13, 2026, Shannon River Fund Management disclosed in an SEC filing that it sold 863,924 shares of JFrog for approximately $40.89 million, resulting in a complete exit from its position, indicating a potential loss of confidence in the company's future prospects.
- Stock Price Fluctuation: JFrog's stock has risen 37% over the past year but has fallen about 31% from a recent peak of nearly $69, reflecting market uncertainty regarding its future performance, which could influence investor decisions.
- Financial Performance: JFrog reported a year-over-year revenue growth rate of 25%, down from over 30% in 2022, yet management remains optimistic about profitability in 2026, suggesting strong performance in the cloud market could drive future earnings growth.
- Investor Perspective: Shannon River's exit could indicate a neutral or bearish outlook on JFrog's prospects, although the company's historical performance and robust growth potential continue to attract growth-oriented investors' interest.
See More
Market Turbulence Creates Small-Cap Opportunities
- Market Instability: After a prolonged period dominated by mega-cap tech, the market has entered 2026 on shaky ground, with the S&P 500 breakeven for the year and the Magnificent 7 stocks averaging a -7.3% return, indicating investor concerns about future profitability.
- Surging Capital Expenditures: As tech giants pour tens of billions into AI models, chips, and data centers, investors are increasingly worried about potential margin compression, even as companies like Amazon tout operational efficiencies and cost reductions.
- Small-Cap Appeal: Skepticism towards large tech firms is prompting capital to rotate into smaller companies, particularly those positioned as enablers of AI development, with Franklin Templeton suggesting that opportunities may lie with suppliers and adopters rather than the mega-cap leaders.
- AI-Resilient Stocks: Despite challenges faced by large-cap software firms, JPMorgan argues that the recent selloff has been too indiscriminate, creating opportunities in what they term
See More
JPMorgan: AI Disruption Fears Overstated for Software Sector
- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
See More
JFrog (FROG) Q4 2025 Earnings Call Transcript
See More
Multiple Companies Shine in After-Hours Trading
- Applied Materials Earnings Beat: California-based semiconductor equipment company Applied Materials reported adjusted earnings of $2.38 per share and revenue of $7.01 billion, both exceeding analyst expectations, leading to an 11% stock price increase that reflects strong market demand and profitability.
- Coinbase Trading Volume Surge: Coinbase announced a total trading volume of $5.2 trillion in 2025, up 156% year-over-year, and despite missing fourth-quarter revenue expectations, its stock rose nearly 2%, indicating robust performance in the crypto market.
- Rivian Delivery Forecast Upgrade: Electric truck manufacturer Rivian expects vehicle deliveries for 2026 to range from 62,000 to 67,000 units, representing a 47% to 59% increase compared to 2025, resulting in a 14% stock price surge that reflects market confidence in its growth potential.
- Airbnb's Upbeat Guidance: Airbnb reported fourth-quarter earnings of $0.56 per share on $2.78 billion in revenue, falling short of analyst expectations, yet the company anticipates full-year revenue growth of at least low double digits, leading to a stock increase of about 2%, showcasing market confidence in its future growth.
See More
JFrog Set to Announce Q4 Earnings on February 12
- Earnings Announcement: JFrog (FROG) is set to release its Q4 earnings on February 12 after market close, with consensus EPS estimate at $0.19 (flat YoY) and revenue estimate at $138.09 million, reflecting a 19% YoY increase.
- Performance Beat Record: Over the past two years, JFrog has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, indicating strong performance in profitability and market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 18 upward revisions with no downward adjustments, showcasing robust market confidence in JFrog's growth; however, revenue estimates experienced one upward and one downward revision, indicating cautious sentiment.
- Market Outlook: Analysts at BofA suggest that JFrog, along with peers like Snowflake, MongoDB, and Datadog, is likely to rise following the end of the 'SaaSpocalypse', reflecting optimistic expectations for JFrog's growth potential in the evolving software landscape.
See More
