What Happened?
A number of stocks jumped in the afternoon session after a broader market rally drove investor optimism in artificial intelligence and big tech stocks. The S&P 500, Dow Jones, and Nasdaq all pushed higher, approaching record levels set late last year.
Much of the positive momentum was linked to the technology sector, with a particular focus on companies advancing artificial intelligence, a key theme at the annual CES trade show in Las Vegas. This continued a powerful trend from 2025, when AI-related developments were a primary catalyst for the market's bull run. The upbeat sentiment was further supported by hopes for easier monetary policy from the Federal Reserve following a weaker-than-expected US Services PMI reading.
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 RingCentral (NYSE: RNG) jumped 2.5%. Is now the time to buy RingCentral? Access our full analysis report here, it’s free for active Edge members.
- Sales Software company HubSpot (NYSE: HUBS) jumped 4%. Is now the time to buy HubSpot? Access our full analysis report here, it’s free for active Edge members.
Zooming In On HubSpot (HUBS)
HubSpot’s shares are quite volatile and have had 18 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 15 days ago when the stock gained 2.4% on the news that financial services firm Jefferies identified the company as a key player positioned for growth in 2026. The positive outlook came as the stock traded near multi-year lows after its multiple compressed by 50% in 2025. During that period, the market had penalized some software firms that could not prove immediate returns for their customers. Jefferies stated that high concerns around Artificial Intelligence were already priced into the stock. The firm believed that with another year of roughly 20% growth and margin expansion, the stock should be able to gradually recover. Catalysts for future growth included AI-driven revenue acceleration and increased upmarket traction.
HubSpot is up 3.9% since the beginning of the year, but at $397.03 per share, it is still trading 51.6% below its 52-week high of $819.71 from February 2025. Investors who bought $1,000 worth of HubSpot’s shares 5 years ago would now be looking at an investment worth $1,059.
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