What Happened?
A number of stocks jumped in the morning session after investors moved to buy the dip in SaaS names that had become significantly oversold amid a fragile market rebound driven by cautious optimism surrounding U.S.-Iran ceasefire talks.
While the Dow Jones Industrial Average retreated under the weight of a spike in oil prices and the naval blockade of the Strait of Hormuz, traders hunted for value in software leaders. Market participants increasingly decoupled cloud-native business models from the physical logistical nightmares and soaring fuel costs straining the broader economy.
This "buy the dip" conviction was further catalyzed by high-profile analyst support for sector leaders like ServiceNow. Bernstein reiterated an "Outperform" rating, framing the company as a foundational AI agent platform with an impenetrable moat in business process automation.
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:
- Data Analytics company Domo (NASDAQ: DOMO) jumped 6.8%. Is now the time to buy Domo? Access our full analysis report here, it’s free.
- Design Software company Adobe (NASDAQ: ADBE) jumped 3.1%. Is now the time to buy Adobe? Access our full analysis report here, it’s free.
- Project Management Software company Asana (NYSE: ASAN) jumped 3.7%. Is now the time to buy Asana? Access our full analysis report here, it’s free.
Zooming In On Domo (DOMO)
Domo’s shares are extremely volatile and have had 60 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 3 days ago when the stock dropped 7.7% on the news that broader concerns about the future of traditional software companies weighed on the sector.
Investors reassessed how software firms would perform in an environment dominated by artificial intelligence (AI) and economic uncertainty. A key concern was the disruptive potential of “agentic AI.” This sparked fears that the traditional software-as-a-service (SaaS) model could lose its relevance. If fewer human users are needed for tasks, companies might cut back on software subscriptions, which are a primary revenue source for many software companies.
Domo is down 69.3% since the beginning of the year, and at $2.55 per share, it is trading 86% below its 52-week high of $18.20 from September 2025. Investors who bought $1,000 worth of Domo’s shares 5 years ago would now be looking at only $42.92.
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