Datadog, Palo Alto Networks, Sprout Social, Monday.com, and Braze Shares Are Falling, What You Need To Know\n\nA number of stocks fell in the afternoon session after Confluent's disappointing quarterly results signaled growing headwinds in the space.\n\nThe data-streaming company missed revenue forecasts, citing significant challenges including customers optimizing their cloud spending and a slowdown in new projects. The situation was worsened by news that a large AI-native client is shifting to self-management, which is expected to impact future growth. Consequently, Stifel downgraded Confluent's stock from \"Buy\" to \"Hold.\" The negative sentiment appeared to spill over to peers like cloud monitoring firm Datadog, which also saw its shares decline.\n\nThe stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.\n\nAmong others, the following stocks were impacted:\n\nCloud Monitoring company Datadog (NASDAQ:DDOG) fell 5.9%. Is now the time to buy Datadog? Access our full analysis report here, it’s free.\n\nNetwork Security company Palo Alto Networks (NASDAQ:PANW) fell 4.8%. Is now the time to buy Palo Alto Networks? Access our full analysis report here, it’s free.\n\nMarketing Software company Sprout Social (NASDAQ:SPT) fell 5.9%. Is now the time to buy Sprout Social? Access our full analysis report here, it’s free.\n\nProject Management Software company Monday.com (NASDAQ:MNDY) fell 4.5%. Is now the time to buy Monday.com? Access our full analysis report here, it’s free.\n\nMarketing Software company Braze (NASDAQ:BRZE) fell 3.1%. Is now the time to buy Braze? Access our full analysis report here, it’s free.\n\nZooming In On Sprout Social (SPT)\n\nSprout Social’s shares are very volatile and have had 21 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.\n\nThe biggest move we wrote about over the last year was 9 months ago when the stock dropped 16.5% on the news that the company reported weak third-quarter earnings. Its EPS and revenue guidance for next quarter missed Wall Street's estimates. Notably, remaining performance obligations (RPO - leading revenue indicator) fell below consensus estimates during the quarter, raising concerns about sales heading into the last quarter of the year. Overall, this quarter could have been better.\n\nSprout Social is down 43% since the beginning of the year, and at $17.50 per share, it is trading 55.2% below its 52-week high of $39.07 from July 2024. Investors who bought $1,000 worth of Sprout Social’s shares 5 years ago would now be looking at an investment worth $605.75.\n\nHere at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

Datadog, Palo Alto Networks, Sprout Social, Monday.com, and Braze Shares Are Falling, What You Need To Know

Several tech stocks, including Datadog, Palo Alto Networks, Sprout Social, Monday.com, and Braze, fell in the afternoon session following Confluent's disappointing quarterly results, which signaled broader challenges in the tech sector. The market reacted to concerns about cloud spending optimization, AI-native client shifts, and revenue guidance misses, leading to significant share price declines.