Snowflake, PagerDuty, monday.com, Oracle, and HubSpot Stocks Trade Down, What You Need To Know

What Happened?

A number of stocks fell in the morning session after markets became increasingly wary of high valuations following a significant AI-driven rally. 

The tech-heavy Nasdaq fell approximately 1.4% as a wave of caution swept through the market. A key example of this trend is Palantir Technologies, which saw its shares drop around 7% despite reporting record quarterly results that surpassed analyst estimates and raising its full-year revenue outlook. This seemingly contradictory movement highlighted a broader sentiment shift. Investors appeared to be engaging in profit-taking, concerned that the recent surge in AI-related stocks had led to stretched valuations. This broader market caution affected high-growth technology companies that had previously surged on AI optimism but faced increased scrutiny, signaling a potential cooling-off period for the sector. 

Adding serious weight to this caution, leadership at both Goldman Sachs and Morgan Stanley highlighted the possibility of a correction in the equity markets over the next couple of years. Despite the euphoria driven by AI optimism and the promise of future rate cuts, these banks viewed this cooling-off period not as a disaster, but as a necessary and healthy feature of a long-term bull market.

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:

• Data Storage company Snowflake (NYSE:SNOW) fell 3%. Is now the time to buy Snowflake? Access our full analysis report here, it’s free for active Edge members.
• Cloud Monitoring company PagerDuty (NYSE:PD) fell 3.4%. Is now the time to buy PagerDuty? Access our full analysis report here, it’s free for active Edge members.
• Project Management Software company monday.com (NASDAQ:MNDY) fell 5.2%. Is now the time to buy monday.com? Access our full analysis report here, it’s free for active Edge members.
• Data Infrastructure company Oracle (NYSE:ORCL) fell 2.8%. Is now the time to buy Oracle? Access our full analysis report here, it’s free for active Edge members.
• Sales Software company HubSpot (NYSE:HUBS) fell 4.8%. Is now the time to buy HubSpot? Access our full analysis report here, it’s free for active Edge members.

Zooming In On monday.com (MNDY)

monday.com’s shares are very volatile and have had 29 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 25 days ago when the stock dropped 2.7% on the news that President Trump threatened to increase import taxes on Chinese goods, reigniting trade war fears. The threat was in response to China's move to restrict its exports of rare earth minerals, which are critical to high-tech manufacturing in the U.S. The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-heavy Nasdaq Composite fell 2.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies.

monday.com is down 16.2% since the beginning of the year, and at $193.51 per share, it is trading 41% below its 52-week high of $327.92 from February 2025. Investors who bought $1,000 worth of monday.com’s shares at the IPO in June 2021 would now be looking at an investment worth $1,082.

P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. Access the ticker here in our special report.