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:
- Video Conferencing company 8x8 (NASDAQ: EGHT) jumped 20.6%. Is now the time to buy 8x8? Access our full analysis report here, it’s free.
- Healthcare And Life Sciences Software company Veeva Systems (NYSE: VEEV) jumped 10.8%. Is now the time to buy Veeva Systems? Access our full analysis report here, it’s free.
- Data Analytics company Health Catalyst (NASDAQ: HCAT) jumped 10.8%. Is now the time to buy Health Catalyst? Access our full analysis report here, it’s free.
Zooming In On 8x8 (EGHT)
8x8’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. But moves this big are rare even for 8x8 and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 8.2% on the news that markets benefited from a "risk-on" sentiment fueled by potential peace negotiations between the U.S. and Iran.
As geopolitical tensions eased, investors returned to growth-heavy favorites like Microsoft and ServiceNow, which offer high-margin subscription revenue and clearer paths for integrating generative AI into enterprise workflows.
8x8 is up 24.6% since the beginning of the year, but at $2.36 per share, it is still trading 13.7% below its 52-week high of $2.73 from February 2026. Despite the year-to-date gain, investors who bought $1,000 worth of 8x8’s shares 5 years ago would now be looking at only $73.46.
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