Shares of content delivery company Fastly (NYSE:FSLY)
fell 5% in the afternoon session after the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the software development industry, including JFrog (NASDAQ:FROG) and its peers.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at software development stocks, starting with GitLab (NASDAQ:GTLB).
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
Software is rapidly reducing operating expenses for businesses. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that cause volatility.
Unfortunately, the rich prices have haunted them over the past six months as the industry has shed 3.1%. This performance was discouraging since the S&P 500 returned 4.5%.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at software development stocks, starting with Bandwidth (NASDAQ:BAND).
Fastly’s first quarter was marked by positive momentum, driven by gains with enterprise customers and notable progress in product diversification. Management credited strong new customer acquisition in strategic verticals such as travel, financial services, and retail, as well as cross-sell momentum in its security and compute portfolio. CEO Todd Nightingale highlighted the impact of Fastly’s revamped go-to-market strategy and increased packaging simplicity, with over half of customers now using more than one product line. Nightingale explained, “Our platform strategy continues to yield results as now almost half of our customers leverage two or more Fastly product lines, generating three quarters of our revenue.”
Looking back on software development stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Dynatrace (NYSE:DT) and its peers.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the software development industry, including Datadog (NASDAQ:DDOG) and its peers.
CEO of Arista Networks, Todd Nightingale, will take over as President and COO in July 2025. Analyst maintains Overweight rating and praises his experience.
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 -1.1%) as Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East. This development has sent crude oil prices surging, as investors fear potential disruptions to global oil supply and a wider regional conflict.
Content delivery company Fastly (NYSE:FSLY) announced better-than-expected revenue in Q1 CY2025, with sales up 8.2% year on year to $144.5 million. Its non-GAAP loss of $0.05 per share was $0.01 above analysts’ consensus estimates.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Fastly has gotten torched over the last six months - since December 2024, its stock price has dropped 22.7% to $7.68 per share. This may have investors wondering how to approach the situation.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at content delivery stocks, starting with F5 (NASDAQ:FFIV).
