What Happened?
A number of stocks fell in the afternoon session after rising treasury yields and renewed Iran tensions hit the software sector.
The 10 year jumped to 4.4% as Trump rejected Iran's latest peace proposal, compressing the terminal value multiples (future cash flow discounted back to the present value) that high multiple SaaS names depend on. The real story was more thematic with 2026 being a difficult year for some software names as investors feared agentic AI would erode the traditional subscription model that powers enterprise software economics.
As a result, capital continued to flow into AI infrastructure names like Nvidia and Micron where capex is tangible and earnings visibility remained high. JP Morgan called the sell off "broken logic" while Morgan Stanley noted it was sentiment driven. However, until estimates stabilized, investors continued to grapple with uncertainty.
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 ZoomInfo (NASDAQ: GTM) fell 3.9%. Is now the time to buy ZoomInfo? Access our full analysis report here, it’s free.
- E-commerce Software company GoDaddy (NYSE: GDDY) fell 3.8%. Is now the time to buy GoDaddy? Access our full analysis report here, it’s free.
- Payments Software company Flywire (NASDAQ: FLYW) fell 4%. Is now the time to buy Flywire? Access our full analysis report here, it’s free.
- Customer Experience Software company Sprinklr (NYSE: CXM) fell 4%. Is now the time to buy Sprinklr? Access our full analysis report here, it’s free.
Zooming In On Sprinklr (CXM)
Sprinklr’s shares are somewhat volatile and have had 14 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 7 days ago when the stock gained 4.7% on the news that strong earnings from enterprise leaders ignited a massive rally across enterprise tech.
Atlassian led the charge, soaring nearly 30% after reporting 32% revenue growth and an unexpected acceleration in cloud adoption. Similarly, Twilio jumped 20% following its fastest growth in three years, fueled by a surge in demand for its AI-integrated voice tools.
This recovery was also bolstered by record-breaking cloud strength; while AWS grew a solid 28%, Google Cloud stunned Wall Street with a 63% revenue increase, proving that enterprise AI infrastructure spending is finally translating into tangible, top-line returns for the software layer. This rally reflected a strategic pivot as investors returned to high-growth software-as-a-service (SaaS) names that previously trailed the broader market.
Sprinklr is down 29.4% since the beginning of the year, and at $5.17 per share, it is trading 44.8% below its 52-week high of $9.35 from July 2025. Investors who bought $1,000 worth of Sprinklr’s shares at the IPO in June 2021 would now be looking at an investment worth $293.47.
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