What Happened?
A number of stocks jumped in the morning session after strong earnings and upbeat forecasts from several peers boosted the broader software sector.
The gains appeared driven by positive sentiment across the software-as-a-service (SaaS) space. For instance, enterprise software maker Atlassian saw its shares surge after lifting its annual forecast, which in turn lifted peers like Salesforce and ServiceNow.
Similarly, Twilio's stock jumped after it reported first-quarter revenue that beat estimates and raised its own forecast, with its CEO highlighting artificial intelligence as a catalyst. This positive news from peers helped create a favorable environment for software stocks, which some strategists noted had been underperforming the broader market and were potentially positioned for a comeback.
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) jumped 2.8%. Is now the time to buy ZoomInfo? Access our full analysis report here, it’s free.
- Endpoint Security company SentinelOne (NYSE: S) jumped 3.7%. Is now the time to buy SentinelOne? Access our full analysis report here, it’s free.
- Vertical Software company Alarm.com (NASDAQ: ALRM) jumped 3.6%. Is now the time to buy Alarm.com? Access our full analysis report here, it’s free.
Zooming In On SentinelOne (S)
SentinelOne’s shares are quite volatile and have had 19 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 11 days ago when the stock gained 2.4% on the news that investors continued to buy the dip despite renewed geopolitical jitters as the U.S.-Iran ceasefire came under doubt following the seizure of the Iranian vessel Touska.
While the fragile peace remained in question ahead of the ceasefire deadline later in the week, the software sector rebounded from a harsh "valuation reset" catalysed by AI fears. High-growth names like Datadog and ServiceNow led the charge as markets continued to decouple from Middle Eastern energy volatility. This resilience reflected a growing conviction that enterprise software remains a core structural winner, regardless of short-term macro turbulence.
SentinelOne is up 1.1% since the beginning of the year, but at $14.81 per share, it is still trading 27.2% below its 52-week high of $20.34 from May 2025. Investors who bought $1,000 worth of SentinelOne’s shares at the IPO in June 2021 would now be looking at an investment worth $348.38.
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