What Happened?

A number of stocks jumped in the afternoon session after software stocks rebounded as the market shook off growing uncertainty amid escalating tension in the Middle East. 

This previous sell-off, nicknamed the "SaaSpocalypse," was driven by investor fears that new artificial intelligence agents could disrupt and threaten the business models of enterprise software companies. The rally suggests investors are shifting from blind fear to a more nuanced view as they monitor the market for "AI Winners.".

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:

• Vertical Software company Bentley Systems (NASDAQ: BSY) jumped 3.6%. Is now the time to buy Bentley Systems? Access our full analysis report here, it’s free.
• Vertical Software company Guidewire Software (NYSE: GWRE) jumped 3.8%. Is now the time to buy Guidewire Software? Access our full analysis report here, it’s free.
• Data Analytics company Health Catalyst (NASDAQ: HCAT) jumped 6.2%. Is now the time to buy Health Catalyst? Access our full analysis report here, it’s free.
• Healthcare And Life Sciences Software company Doximity (NYSE: DOCS) jumped 3.9%. Is now the time to buy Doximity? Access our full analysis report here, it’s free.

Zooming In On Health Catalyst (HCAT)

Health Catalyst’s shares are extremely volatile and have had 50 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 13 days ago when the stock dropped 4.4% on the news that investor fears over artificial intelligence disrupting the software industry sparked a broad sell-off. The anxiety stemmed from the rapid adoption of new 'agentic AI' tools, which some investors believed could dismantle traditional Software-as-a-Service (SaaS) business models. This 'AI Panic' led to indiscriminate selling across the sector. The market move reflected growing concerns about the downside of the AI boom for established software companies.

Health Catalyst is down 26.5% since the beginning of the year, and at $1.68 per share, it is trading 63.6% below its 52-week high of $4.60 from March 2025. Investors who bought $1,000 worth of Health Catalyst’s shares 5 years ago would now be looking at an investment worth $34.72.

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.