A number of stocks jumped in the afternoon session after the SaaS sector continued to rally as favorable inflation data bolstered hopes for a Federal Reserve interest rate cut. This optimism was largely driven by a benign July Consumer Price Index (CPI) report, which solidified investor expectations for a Federal Reserve interest rate cut. Following the release of the inflation data, which showed a year-over-year increase of 2.7%, the probability of a rate cut in September surged to over 96%. Lower interest rates are typically beneficial for growth-oriented technology stocks, as they can reduce borrowing costs and increase the present value of future earnings. Adding to the positive sentiment was a 90-day delay in the imposition of higher tariffs on Chinese goods, which reduced trade-related uncertainty for the technology sector.
Shares of business software provider Freshworks (NASDAQ: FRSH)
jumped 3.1% in the afternoon session after Oppenheimer reiterated an "Outperform" rating on the stock with a $19.00 price target. The positive sentiment followed a presentation by Freshworks' CFO at Oppenheimer's annual technology conference, where management conveyed an upbeat tone regarding the company's market opportunities and AI momentum. The analyst's confidence is supported by the company's strong second-quarter results, reported in late July, which saw revenue grow 17.5% year-over-year, beating Wall Street's expectations. Notably, Freshworks' non-GAAP profit per share of $0.18 was nearly 56% above consensus estimates. Adding to the tailwind, the broader market rallied on the day after a favorable inflation report boosted investor hopes for a potential interest rate cut, with major indexes hitting new highs.
Business software provider Freshworks (NASDAQ: FRSH) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 17.5% year on year to $204.7 million. The company expects next quarter’s revenue to be around $208.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.18 per share was 55.9% above analysts’ consensus estimates.
Growth is oxygen.
But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
A number of stocks jumped in the afternoon session after the Software as a Service (SaaS) sector rebounded following the sell-off in the previous trading session as a weaker-than-expected U.S. jobs report increased the probability of a Federal Reserve interest rate cut.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Business software provider Freshworks (NASDAQ: FRSH) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 17.5% year on year to $204.7 million. The company expects next quarter’s revenue to be around $208.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.18 per share was 55.9% above analysts’ consensus estimates.
Risk appetite took a breather Tuesday, with major U.S. stock indices retreating modestly from record highs as investors braced for a pivotal stretch of earnings and macro events.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at ZoomInfo (NASDAQ:ZI) and its peers.
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the sales software industry, including Freshworks (NASDAQ:FRSH) and its peers.
From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that cause volatility.
Unfortunately, the rich prices have haunted them over the past six months as the industry has shed 2.3%. This performance was discouraging since the S&P 500 returned 5%.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Salesforce (NYSE:CRM) and its peers.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
