What Happened?
A number of stocks jumped in the afternoon session after software equities broadly gained momentum following a pullback in treasury yields and second-quarter financial results from Snowflake.
Lower Treasury yields supported the move after Fed Governor Christopher Waller signaled support for keeping rates steady. The 10-year yield fell to 4.756%, while the 2-year yield declined to 4.328%, according to CNBC. Because software valuations are heavily based on cash flows expected years into the future, lower yields reduce the discount rate applied to those earnings and can increase the value investors assign to the group today.
Snowflake surged after reporting earnings and increasing its forward outlook, sparking widespread optimism across the enterprise software industry. Taking a closer look at the quarter, SNOW’s revenue reached $1.55 billion, up 35% year on year, driven by product revenue of $1.48 billion, which grew 37%, the company reported in an official press release. The upbeat report bolstered investor sentiment regarding enterprise tech demand and software spending.
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 Palantir Technologies (NASDAQ: PLTR) jumped 8.3%. Is now the time to buy Palantir Technologies? Access our full analysis report here, it’s free.
- Compliance Software company Workiva (NYSE: WK) jumped 4.5%. Is now the time to buy Workiva? Access our full analysis report here, it’s free.
- Data Infrastructure company Elastic (NYSE: ESTC) jumped 4.3%. Is now the time to buy Elastic? Access our full analysis report here, it’s free.
- Video Conferencing company RingCentral (NYSE: RNG) jumped 5.3%. Is now the time to buy RingCentral? Access our full analysis report here, it’s free.
- Video Conferencing company 8x8 (NASDAQ: EGHT) jumped 3%. Is now the time to buy 8x8? Access our full analysis report here, it’s free.
Zooming In On Palantir Technologies (PLTR)
Palantir Technologies’s shares are extremely volatile and have had 34 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 4.8% on the news that quarterly earnings and upbeat corporate commentary signaled that artificial intelligence is driving growth across enterprise software rather than threatening legacy business models.
Palantir Technologies is up 9.3% since the beginning of the year, but at $183.40 per share, it is still trading 11.5% below its 52-week high of $207.18 from November 2025. Investors who bought $1,000 worth of Palantir Technologies’s shares 5 years ago would now be looking at an investment worth $6,884.
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