Palantir's stock and the broader software sector are experiencing significant declines, with technical breakdowns suggesting further downside potential. The iShares Expanded Tech-Software Sector ETF and key stocks like Palantir and Intuit are showing signs of weakness, though some infrastructure stocks like Synopsis demonstrate resilience. Investors are advised to play defense until the technical picture improves.
Salesforce and other top software stocks like Adobe, Workday, Atlassian, and Snowflake are experiencing a sell-off due to weak near-term results and guidance, despite optimism around AI. The iShares Expanded Tech-Software Sector ETF is recommended for those looking to buy the dip in the software sector, offering broad exposure and diversification benefits. However, caution is advised due to potential volatility and economic uncertainties affecting SaaS companies' growth.
Salesforce and other top software stocks have seen significant declines due to weak guidance and slowing growth, despite strong long-term prospects in AI. The iShares Expanded Tech-Software Sector ETF is recommended for those looking to buy the dip and gain diversified exposure to the software industry.
Software stocks plummeted due to disappointing quarterly reports from Salesforce and UiPath, with Salesforce dropping 19.7% and UiPath 34%. The decline is attributed to massive AI spending by customers, which is straining budgets for other software services. UiPath's CEO chaos and consistent losses further exacerbated its stock collapse, now down 85% from its peak. Other major software companies also saw significant declines.
Dow Jones futures were steady overnight, with the stock market rally continuing its winning streak. The software sector performed well, with stocks like Datadog, MongoDB, and Dynatrace clearing early entries. Adobe and ServiceNow also moved above official buy points. However, market breadth was lackluster, with energy stocks tumbling. Tesla rivals Rivian and Lucid reported after hours, with staffing firm Upwork among the big winners. Overall, the stock market rally remains strong, but a market pause or pullback may be on the horizon. Investors should focus on building their watchlists and staying in sync with market direction and leading stocks and sectors.
Dow Jones futures, along with S&P 500 futures and Nasdaq futures, rose slightly after hours. The stock market rally had a mixed session, with the Nasdaq composite rising slightly but paring intraday gains. Several software stocks, including HubSpot, MongoDB, Datadog, Snowflake, Palantir Technologies, Dynatrace, Confluent, Samsara, Monday.com, and Shopify, flashed buy signals. Micron Technology reported earnings that were slightly better than expected, but cited China curbs on its chips as a significant headwind. Nvidia and Advanced Micro Devices showed resilience following reports of potential tighter chip export curbs to China. The market rally is in a Catch-22 situation, raising risks for new buys in the short run.
