A number of stocks jumped in the afternoon session after 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.
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:
Freshworks’s shares are somewhat volatile and have had 14 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 5 days ago when the stock gained 5.8% on the news that the technology sector rallied, pushing the Nasdaq near all-time highs, as investors cheered a potential de-escalation of geopolitical tensions in the Middle East amid a flurry of positive news in the artificial intelligence space.
The broader market sentiment was lifted by expectations of a resolution to the U.S.-Iran conflict, which helped the S&P 500 cross the 7,000 mark. However, the tech sector saw particularly strong performance, driven by excitement around AI. Underscoring this trend, reports emerged that Uber is investing over $10 billion to acquire a fleet of autonomous vehicles.
This move signals a major strategic shift for the company and highlights the massive capital flowing into AI-driven technologies, boosting confidence across the industry and affecting related players like Alphabet’s Waymo and Tesla.
Freshworks is down 24.3% since the beginning of the year, and at $8.79 per share, it is trading 45% below its 52-week high of $15.98 from May 2025. Investors who bought $1,000 worth of Freshworks’s shares at the IPO in September 2021 would now be looking at an investment worth $184.75.
