What Happened?
A number of stocks jumped in the morning session after strong earnings and upbeat forecasts from several peers boosted the broader software sector.
The gains appeared driven by positive sentiment across the software-as-a-service (SaaS) space. For instance, enterprise software maker Atlassian saw its shares surge after lifting its annual forecast, which in turn lifted peers like Salesforce and ServiceNow.
Similarly, Twilio's stock jumped after it reported first-quarter revenue that beat estimates and raised its own forecast, with its CEO highlighting artificial intelligence as a catalyst. This positive news from peers helped create a favorable environment for software stocks, which some strategists noted had been underperforming the broader market and were potentially positioned for a comeback.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Sales Software company HubSpot (NYSE: HUBS) jumped 7%. Is now the time to buy HubSpot? Access our full analysis report here, it’s free.
- Project Management Software company monday.com (NASDAQ: MNDY) jumped 6.2%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
Zooming In On HubSpot (HUBS)
HubSpot’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 2.5% on the news that Macquarie reiterated its "Outperform" rating and $350 price target on the company's stock.
This move followed an investor webinar where the software company discussed its strategy, AI product adoption, and internal AI transformation. Other analysts also expressed positive views. Cantor Fitzgerald maintained its "Overweight" rating on HubSpot with a $325 price target. In addition, Truist Securities held its "Buy" rating and a $300 price target, highlighting the company's pivot towards an Agentic Customer Platform.
HubSpot is down 37.7% since the beginning of the year, and at $238.35 per share, it is trading 64.5% below its 52-week high of $672.24 from May 2025. Investors who bought $1,000 worth of HubSpot’s shares 5 years ago would now be looking at only $457.53.
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