Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Marketing analytics software Semrush (NYSE:SEMR) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 19.7% year on year to $108.9 million. On the other hand, next quarter’s revenue guidance of $111.6 million was less impressive, coming in 2.9% below analysts’ estimates. Its non-GAAP profit of $0.07 per share was 17.9% below analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after cooler-than-expected inflation data ignited investor optimism for a potential Federal Reserve interest rate cut. The July Consumer Price Index (CPI) report, an important measure of inflation, came in cooler than expected, showing prices holding steady at an annual rate of 2.7%. This data has led to speculation that the Federal Reserve might lower interest rates. For growth-focused sectors like SaaS, lower interest rates are particularly beneficial as they increase the present value of companies' future earnings, making their stocks more appealing.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Marketing analytics software Semrush (NYSE:SEMR) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 19.7% year on year to $108.9 million. On the other hand, next quarter’s revenue guidance of $111.6 million was less impressive, coming in 2.9% below analysts’ estimates. Its GAAP loss of $0.04 per share was significantly below analysts’ consensus estimates.
After the conclusion of the US market's regular session on Monday, let's examine the after-hours session and unveil the notable performers among the top gainers and losers.
A number of stocks jumped in the morning 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 July Nonfarm Payrolls (NFP) report showed the U.S. economy added only 73,000 jobs, significantly below the 110,000 forecast. This, combined with downward revisions for May and June, signaled a cooling labor market to investors. In response, market expectations for a September interest rate cut by the Federal Reserve surged from roughly 40% to over 80%. A potential rate cut is generally favorable for growth sectors like technology and SaaS, as lower rates can increase the present value of their future earnings, boosting stock valuations.
A number of stocks fell in the morning session after the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
Semrush’s stock price has taken a beating over the past six months, shedding 43.9% of its value and falling to $8.79 per share. This might have investors contemplating their next move.
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.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
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%.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Semrush (NYSE:SEMR) and the rest of the sales and marketing software stocks fared in Q1.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold.
Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Marketing analytics software Semrush (NYSE:SEMR) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 22.4% year on year to $105 million. The company expects next quarter’s revenue to be around $108.7 million, close to analysts’ estimates. Its non-GAAP profit of $0.02 per share was 74.9% below analysts’ consensus estimates.
