Last man standing: There's only one software stock left on Josh Brown's Best Stocks list

Casey's General Stores was added to the S&P 500 and posted diluted EPS of $3.49, up nearly 50% year over year, with EBITDA up 27.5% to $309 million; the stock is now around $837 after a 7% post-inclusion jump. Zoom rose to new 52-week highs, with the Anthropic stake potentially worth $2B-$4B and $7.8B in cash on the balance sheet, while eBay surged 12% after-hours after reports that GameStop is preparing a $125/share offer. The article is broadly constructive on all three names, but emphasizes technical levels and event-driven upside rather than a change in macro outlook.

Analysis

The common thread is not “good companies” but balance-sheet optionality becoming monetizable at the exact moment momentum investors are forced to re-rate duration. CASY is the cleaner expression: inclusion flow plus a still-intact trend creates a mechanical bid that can persist for weeks, but the trade is now more about protecting gains than chasing upside. In contrast, ZM and EBAY are being upgraded by narrative catalysts layered on top of already improving charts, which matters because narrative alone tends to fade unless it is confirmed by support from passive and systematic buyers.

The second-order winner in ZM is not just the stock; it is the market’s willingness to assign value to hidden assets inside mature software franchises. If the Anthropic mark is directionally right, the equity is no longer a pure operating company valuation exercise, which compresses the downside in the near term. The risk is that investors overpay for the embedded venture asset and ignore the core business’s middling growth, making $83 the critical regime line: above it, the hidden-asset thesis can recruit incremental buyers; below it, the stock likely reverts to being judged on legacy software fundamentals.

EBAY is the most interesting setup because the bid rumor creates free optionality on top of an improving operating base. Even if a transaction never happens, the market has now repriced the name as a strategic asset, which can tighten the multiple for months if the board process drags on. The overhang is that the buyer has limited firepower relative to target size, so a failed approach could create a fast air-pocket back into the prior range if shareholders conclude the catalyst was one-off and not a durable M&A rerating.

The contrarian read is that the market may be underestimating how much of this tape is being driven by technical scarcity rather than fundamental acceleration. That argues for owning strength selectively, not indiscriminately: the upside is best expressed in names with clean support and a believable catalyst stack, while the weakest risk/reward is in chasing extended moves without a clear floor. The next few weeks should separate true regime changes from headline spikes.

Key Decisions for Investors

• Maintain a tactical long in CASY only while it holds above the rising 50-day; use any further strength to trim 20-30% of the position and trail stops just below the $720 area over the next 2-4 weeks.
• Buy ZM only on pullbacks toward the $83 support zone; if that level holds for 1-2 weeks after breakout, add with a 6-8 week horizon targeting continuation, but cut aggressively on a daily close below $83.
• Stay long EBAY while above the $90-95 support band; consider a call spread into any post-rumor consolidation over the next 30-45 days, since the market may continue to price in strategic value even without a deal.
• Avoid chasing GME on the bid rumor alone; if using it as a hedge, express the view via a short-dated call spread in EBAY rather than directional GME long, since the probability-weighted outcome favors volatility over conviction.
• Relative-value idea: long EBAY / short a basket of weaker internet retail names over the next month, betting that EBAY’s improved fundamentals plus strategic optionality will outperform names without either catalyst or balance-sheet support.