What Happened?
A number of stocks fell in the morning session after a broad sell-off swept through the software sector, driven by growing concerns about the impact of artificial intelligence. This led to institutional repositioning as traders pivot away from traditional SaaS providers in favor of companies with more defensible, AI-integrated moats. The tech-heavy Nasdaq Composite index declined by 0.8%, while the broader S&P 500 also slipped.
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:
- Video Conferencing company Five9 (NASDAQ:FIVN) fell 6.7%. Is now the time to buy Five9? Access our full analysis report here, it’s free.
- Vulnerability Management company Rapid7 (NASDAQ:RPD) fell 7.8%. Is now the time to buy Rapid7? Access our full analysis report here, it’s free.
- E-commerce Software company Shopify (NASDAQ:SHOP) fell 7.6%. Is now the time to buy Shopify? Access our full analysis report here, it’s free.
- Sales Software company ZoomInfo (NASDAQ:GTM) fell 7.8%. Is now the time to buy ZoomInfo? Access our full analysis report here, it’s free.
- Endpoint Security company SentinelOne (NYSE:S) fell 7%. Is now the time to buy SentinelOne? Access our full analysis report here, it’s free.
Zooming In On ZoomInfo (GTM)
ZoomInfo’s shares are very volatile and have had 24 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 12 days ago when the stock gained 3.5% on the news that reports of easing geopolitical tensions in Greenland boosted investor sentiment. The relief rally saw major indices, including the S&P 500 and the tech-heavy Nasdaq Composite, rebound as investors moved back into riskier assets. This positive shift was reflected across the technology landscape, with all of the Magnificent Seven tech firms seeing their shares climb. The easing of international friction reduced market uncertainty, which often encourages investment in growth-oriented sectors like technology. The move was part of a broader market upswing, with the Dow Jones Industrial Average adding 500 points, signaling increased investor confidence.
ZoomInfo is down 26.8% since the beginning of the year, and at $7.04 per share, it is trading 42.3% below its 52-week high of $12.20 from September 2025. Investors who bought $1,000 worth of ZoomInfo’s shares 5 years ago would now be looking at an investment worth $128.89.
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