Friday Fast Five - 8/28/2026
by Hodges Investment Team, on August 28, 2026
Five interesting things that Hodges Capital research analysts discovered this week...
#1 SOFTWARE SAVIOR: AI was once believed to be the proverbial nail in the coffin for the software industry, as AI agents could handle tasks at lower costs and with greater efficiency than software providers could ever hope to compete with. Recently, however, Anthropic CEO Dario Amodei has argued that AI, in partnership with software providers such as Salesforce, is the path forward and that AI is here to build in unison with, not destroy, competitors. Markets have approved of the message, and a litany of software names have moved positively on the news.
#2 SOCIAL CONTRACT: After lengthy litigation, Meta has agreed to an $18 billion settlement with 48 U.S. states and three territories. The case centered on claims that Meta was aware of the dangers social media platforms such as Facebook and Instagram posed to children and did not sufficiently address these risks. Meta announced that the payout will be made in annual installments over a 10-year period and that a host of new safety features will be added to its family of apps for teen users. The Attorney General for the District of Columbia called the deal a “monumental public health victory.”
#3 LINE IN THE SAND: As college football prepares to kick off this weekend, unprecedented levels of interconference alignment have emerged. The catalyst was an injunction against the NCAA issued by a Colorado judge allowing all athletes from the high school class of 2022 an extra year of eligibility, including athletes who had moved on to the professional levels of their sports. Public outcry followed, and fortunately, the power conferences have taken it upon themselves to establish rules barring professional athletes from returning to collegiate sports, restoring some level of normalcy.
#4 GOT GRAIN? The price of wheat recently hit a three-year high of more than $7.30 a bushel. The price action is largely due to the continued conflict between Ukraine and Russia, as almost a third of global exports originate in the region. The impending El Niño weather pattern is also viewed as a risk to supply.
#5 TEXAS TAKING THE LEAD: Much has been written about the data center rush occurring across the U.S. as both governments and corporations assess where they can add power. Currently, Texas and Virginia sit at the top, each with roughly 8 GW of data center inventory. However, of the 66 GW planned to come online, roughly a third is expected to be added in Texas, which would give the state a commanding lead over second place.
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