What Happened?
A number of stocks jumped in the afternoon session after 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.
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 Zoom (NASDAQ: ZM) jumped 8.2%. Is now the time to buy Zoom? Access our full analysis report here, it’s free.
- Vulnerability Management company Qualys (NASDAQ: QLYS) jumped 2.8%. Is now the time to buy Qualys? Access our full analysis report here, it’s free.
- Payments Software company Flywire (NASDAQ: FLYW) jumped 5.8%. Is now the time to buy Flywire? Access our full analysis report here, it’s free.
Zooming In On Zoom (ZM)
Zoom’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 8.2% on the news that a broader sell-off in the enterprise software sector hit the company.
The sell-off hit several major enterprise software companies, even as the broader tech market posted gains. This repricing occurred as investors grew concerned that managed AI agents from companies like Anthropic and OpenAI could disrupt the foundation of enterprise software. The decline also compounded existing investor worries about Zoom's sustainability and its ability to handle increased competition in a post-pandemic world.
Zoom is up 6.6% since the beginning of the year, and at $88.81 per share, it is trading close to its 52-week high of $96.22 from January 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Zoom’s shares 5 years ago would now be looking at only $267.19.
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