The bear market of 2022 was especially unkind to many cloud software stocks, but things started to look up for some of them in 2023. As measured by the First Trust Cloud Computing ETF, the cloud software stock sector is up over 30% through the first nine months of 2023.  

Though software businesses are incredibly promising with generally high profit margins and the ability to infinitely scale, not all business models are created equal. Two former darlings are rebounding, but one of them could be a value trap. Here's why.

Alteryx (NYSE: AYX) got some bullish sentiment in the last month, including an analyst upgrade. Share prices are down nearly 30% so far this year, horribly underperforming peers, but have rallied from their lows earlier this summer on cost-cutting optimism and management's belief it will remain a growth business through 2028.

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Source Fool.com