This article is based on a recent video from Daniel Pronk (267k subscribers), where he breaks down how ugly the selloff has been in software and big tech, even with the S&P 500 still near its highs.
The main point is a lot of quality names have been hit in the same wave of selling, and some of them now look far cheaper than they did just months ago. His focus isn’t quick flips. It’s buying strong businesses during drawdowns and letting time do the heavy lifting.
The market doesn’t look “crashed” if all anyone checks is the S&P 500, but zoom in and it’s a different story. Software has been getting hammered, and even mega-caps like Amazon and Meta have been in real corrections. In that environment, prices can fall faster than fundamentals change, and that’s where Daniel is leaning in.
His lens is also important: for the biggest tech platforms, he’s watching operating cash flow more than free cash flow right now, because heavy AI capex can squeeze free cash flow temporarily. The question becomes: are these companies still growing the underlying engine even during a spending cycle?
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Here are the 5 stocks thai analyst is buying;
Stock #1: Meta
Meta is down about 15% from its highs, and Daniel’s view is that the selloff doesn’t match what the business is doing. He highlights strong results, an outlook calling for revenue growth to accelerate, and the fact that the market basically erased the post-earnings move anyway.
What he likes most is the operating cash flow profile. Meta’s trailing 12-month operating cash flow hit roughly $116B, which tells him the core machine is still throwing off more cash even with big investment plans.
He also points to AI showing up in the numbers through stronger engagement, Reels watch-time growth in the U.S., and Ray-Ban Meta glasses sales more than tripling in 2025. He even mentions Bill Ackman’s reported Meta position and the broader idea that Meta’s first-party data and ad stack make it one of the clearest AI beneficiaries in large-cap tech.
Stock #2: MercadoLibre
MercadoLibre is one of Daniel’s highest-conviction names, and the story is basically “elite fundamentals, discounted price.” The stock fell back near $2,000 after being much higher in 2025, yet he describes the business as still growing at an aggressive pace.
He calls the revenue chart one of the strongest he’s seen, with trailing 12-month revenue around $26.2B and long-running growth near 40%. He also leans on competitive positioning in Brazil, pointing to download rankings where MercadoLibre remains the top e-commerce app, and he talks through a strategy that compressed margins in the short term to capture more users.
The key part is what comes next: after pulling users into the ecosystem, the company can lift fees and rebuild margins. That’s the monetization phase he’s watching going into earnings.
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Stock #3: Brookfield Asset Management (BAM)
Brookfield Asset Management is framed as a high-quality compounder with a different flavor: more income-oriented, with a large share of earnings paid out as dividends. Daniel uses it as an example of durable business strength during market noise.
He highlights record fundraising, strong year-over-year growth in fee-related earnings, and margins reaching an all-time high in the most recent quarter. The bigger theme is Brookfield’s positioning in the AI infrastructure buildout, power, data centers, grids, and the physical backbone AI needs.
He notes that Brookfield quietly lifted its longer-term growth outlook in investor materials, and he models returns off continued earnings growth plus a valuation multiple that doesn’t require heroic assumptions.
Stock #4: Brookfield Corporation (BN)
He then contrasts BAM with Brookfield Corporation, which he views as more growth-focused. The difference is important: BAM is built to distribute, BN is built to compound. Daniel’s angle is that if Brookfield executes anywhere near guidance on distributable earnings growth, the current pricing can still work out well over a multi-year stretch.
This section is less about a single catalyst and more about Brookfield as a long-duration operator in infrastructure and private markets, in a world where capital is still being deployed into energy, data, and real assets.
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Stock #5: Constellation Software (and Topicus)
Constellation is where Daniel gets the most animated, because it’s a direct counter to the “AI kills all software” fear trade.
He describes software selling as indiscriminate, and he argues that Constellation is exactly the type of business that can hold up because of sticky vertical software, deep workflows, and a long track record of disciplined acquisitions.
He points to two updates: a cybersecurity contract win tied to a Constellation-related business in the Netherlands ecosystem, and a new AI product (Stella AI) from Constellation Homebuilder Systems.
The point he keeps coming back to is that Constellation isn’t standing still. It’s shipping AI tools into niche software where data and workflow context matter, which can make AI a value add instead of a threat.
Valuation is a major part of the pitch here. He notes Constellation trading at a much lower free cash flow multiple than usual after the selloff, even as revenue and free cash flow remain strong. Topicus gets a mention as a related, smaller play in the same family, with the idea that smaller bases can sometimes compound faster if execution holds.
However, Daniel’s overall message is not complicated: the market is dumping software and tech in broad sweeps, and that creates pockets where pricing disconnects from business quality.
His playbook is to buy the names with real cash generation, strong competitive moats, and clear reinvestment paths, especially when sentiment flips so hard that people stop caring about price.
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The post Tech Panic Is Here: 5 Stocks That Could Be Generational Buys at These Levels appeared first on CaptainAltcoin.