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:
- Design Software company Unity (NYSE:U) fell 9.5%. Is now the time to buy Unity? Access our full analysis report here, it’s free.
- Tax Software company Intuit (NASDAQ:INTU) fell 9.7%. Is now the time to buy Intuit? Access our full analysis report here, it’s free.
- Communications Platform company Twilio (NYSE:TWLO) fell 9.3%. Is now the time to buy Twilio? Access our full analysis report here, it’s free.
- Sales Software company Freshworks (NASDAQ:FRSH) fell 9.7%. Is now the time to buy Freshworks? Access our full analysis report here, it’s free.
- Design Software company Procore Technologies (NYSE:PCOR) fell 9.9%. Is now the time to buy Procore Technologies? Access our full analysis report here, it’s free.
Zooming In On Procore Technologies (PCOR)
Procore Technologies’s shares are quite volatile and have had 15 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 29 days ago when the stock gained 4.9% on the news that Barclays upgraded its rating on the stock to "Overweight" from "Equalweight" and increased its price target.
The firm raised its price target to $90 from $82. The analyst cited a positive outlook for U.S. non-residential construction heading into 2026 as a key reason for the upgrade. Barclays also noted confidence in Procore's new CEO, Ajei Gopal, highlighting his experience with enterprise customers and scaling a business's revenue. The bank's price target assumed continued revenue growth for the company in the upcoming fiscal years.
Procore Technologies is down 26.8% since the beginning of the year, and at $51.25 per share, it is trading 42% below its 52-week high of $88.33 from February 2025. Investors who bought $1,000 worth of Procore Technologies’s shares at the IPO in May 2021 would now be looking at an investment worth $582.32.
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