What Happened?
Shares of cybersecurity software provider Rapid7 (NASDAQ: RPD) jumped 12.6% in the afternoon session after the cybersecurity sector rallied following a strong earnings report and upbeat forecast from peer company Okta.
Okta's stock surged more than 20% after it reported first-quarter results that beat expectations and raised its full-year earnings per share forecast. The positive sentiment spilled over to the entire industry, lifting other cybersecurity stocks like CrowdStrike and Palo Alto Networks. The sector-wide gains are also supported by a broader trend of increased demand for companies that can secure AI workloads. This growing need for AI-related security is helping to drive both revenue and higher market valuations for cybersecurity firms.
The shares closed the day at $8.38, up 12.6% from the previous close.
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What Is The Market Telling Us
Rapid7’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. But moves this big are rare even for Rapid7 and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 6.3% on the news that Snowflake's impressive earnings results provided the clearer evidence that the "SaaSpocalypse" — a rolling selloff that had erased approximately $2 trillion from software market values since late 2025 on fears that AI would make subscription software obsolete — had been overstated for platforms sitting at the centre of AI workflows.
Snowflake surged 35%, its best single day ever, after reporting that AI accounts on its platform jumped from 9,100 to 13,600 in a single quarter, product revenue grew 34%, and full-year guidance was raised by $180 million. The read-through was immediate. ServiceNow gained 5%, Palantir rose nearly 6%, Oracle and Microsoft each added roughly 3%, and a broad wave lifted the iShares Expanded Tech-Software Sector ETF (IGV). The SaaSpocalypse thesis rested on a simple fear: that autonomous AI agents would replace per-seat software licences, hollowing out established SaaS business models. Snowflake's results inverted that logic directly. Instead of AI displacing its platform, AI drove more consumption of it.
CFO Brian Robins described Cortex Code as creating a "step function change" in AI revenue potential, and said it was the single largest driver of the full-year guidance raise. Enterprises are not replacing data platforms with AI; they are using AI to generate more workloads that run on those same platforms.
Rapid7 is down 41.3% since the beginning of the year, and at $8.38 per share, it is trading 67.3% below its 52-week high of $25.59 from July 2025. Investors who bought $1,000 worth of Rapid7’s shares 5 years ago would now be looking at only $100.42.
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