What Happened?
A number of stocks jumped in the afternoon session after President Trump's state visit to Beijing lifted market sentiment across tech, with the S&P hitting a record high above 7,500.
While the Trump-Xi summit produced fewer concrete deals than investors had hoped for, the general mood around US-China trade relations shifted from confrontational to cautiously constructive and for a sector as globally exposed as software, that reduction in uncertainty was enough to drive buyers back in.
Adding to the positive sentiment, Figma posted 46% revenue growth with early AI monetisation showing genuine traction, and ServiceNow announced a multi-year AI partnership with Experian. Each print reinforced the same thesis: that enterprise software companies are successfully embedding AI into their products and charging for it, rather than being disrupted by it a concern that had weighed heavily on the sector earlier in the year.
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 Freshworks (NASDAQ: FRSH) jumped 6%. Is now the time to buy Freshworks? Access our full analysis report here, it’s free.
- Marketing Software company Braze (NASDAQ: BRZE) jumped 5.2%. Is now the time to buy Braze? Access our full analysis report here, it’s free.
- Data Analytics company Samsara (NYSE: IOT) jumped 6%. Is now the time to buy Samsara? Access our full analysis report here, it’s free.
- Document Management company DocuSign (NASDAQ: DOCU) jumped 4.9%. Is now the time to buy DocuSign? Access our full analysis report here, it’s free.
- Developer Operations company GitLab (NASDAQ: GTLB) jumped 5.7%. Is now the time to buy GitLab? Access our full analysis report here, it’s free.
Zooming In On Samsara (IOT)
Samsara’s shares are very volatile and have had 28 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 4 days ago when the stock dropped 3.1% on the news that rising treasury yields and renewed Iran tensions hit the software sector.
The 10 year jumped to 4.4% as Trump rejected Iran's latest peace proposal, compressing the terminal value multiples (future cash flow discounted back to the present value) that high multiple SaaS names depend on. The real story was more thematic with 2026 being a difficult year for some software names as investors feared agentic AI would erode the traditional subscription model that powers enterprise software economics.
As a result, capital continued to flow into AI infrastructure names like Nvidia and Micron where capex is tangible and earnings visibility remained high. JP Morgan called the sell off "broken logic" while Morgan Stanley noted it was sentiment driven. However, until estimates stabilized, investors continued to grapple with uncertainty.
Samsara is down 12.7% since the beginning of the year, and at $29.61 per share, it is trading 37.8% below its 52-week high of $47.62 from May 2025. Investors who bought $1,000 worth of Samsara’s shares at the IPO in December 2021 would now be looking at an investment worth $1,199.
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