Software stocks extended their selloff in the morning session as investors repriced valuations amid concerns over AI capital expenditure and decelerating software bookings. Oracle filed to raise $20 billion through debt and equity, reigniting worries about soaring AI spending and cash burn. Quarterly reports from Alphabet and Amazon showed data-center outlays compressing free cash flow, per Bloomberg, while the Nasdaq posted its steepest monthly decline in over a year, according to The Wall Street Journal. Cloudflare (NET) fell 4.4%, MongoDB (MDB) 3.5%, Datadog (DDOG) 4.4%, JFrog (FROG) 5.7% and Elastic (ESTC) 4.6%. JFrog has had 45 moves greater than 5% over the past year, and its shares dropped 8.8% three days earlier.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
softwareNasdaqAI investmentQQQ
Open a keyword to see other news on the same topic.
Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 11/03/2026 | 685.34 |
| Change that session | +0.62% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- CrowdStrike (CRWD) stock trades down, here is why
CrowdStrike (NASDAQ:CRWD) shares fell 2.5% in the morning session as software stocks extended their selloff over concerns about AI capital spending and slowing software bookings. Oracle filed to raise $20 billion in debt and equity, while quarterly reports from Alphabet and Amazon showed soaring data-center spending compressing free cash flow, contributing to the Nasdaq's steepest monthly decline in over a year. In cybersecurity, Check Point Software slid after third-quarter sales missed expectations and it warned its recovery is taking longer than anticipated. CrowdStrike shares later recovered some of the losses to $249.64, down 0.3% from the previous close.
- Cybersecurity Stocks Slide as AI Financing Jitters Spread: Palo Alto Falls 7%, SentinelOne Sinks 9%, Zscaler Drops 6%
Cybersecurity stocks fell sharply in afternoon trading as concerns about how AI spending is funded spread across technology: Palo Alto Networks dropped 7% to $343.31, SentinelOne fell 9% to $21.29, and Zscaler lost 6% to $206.39. The First Trust NASDAQ Cybersecurity ETF (CIBR) fell 4% and the Invesco QQQ Trust (QQQ) fell 1.72%, so the sector is falling harder than large-cap tech. The pullback reverses record highs set earlier this month, even though Citi raised its price target on Palo Alto and kept a Buy rating, citing improving security spending as companies deploy AI. Palo Alto's fiscal Q4 2026 revenue rose 34.5% to $3.41 billion, and its Next-Generation Security ARR jumped 63% to $9.1 billion.
- AI Stocks Slide: Are Tech ETFs Worth Watching?
October saw a sharp selloff in technology and semiconductor stocks as concerns over AI spending, weakening free cash flow and elevated interest rates wiped out more than 2 trillion USD in Nasdaq-100 market value. The article argues this does not necessarily signal the end of the bull market or the AI investment cycle, but reflects investors demanding proof that infrastructure spending will translate into sustainable revenue and free cash flow. Alphabet plunged more than 12% in one session after quarterly capex reached about 51 billion USD, while Amazon's trailing 12-month free cash flow was a negative 42.4 billion USD, even as Google Cloud revenue more than doubled to 30.7 billion USD. The S&P 500 has finished higher 12 months after every U.S. midterm election since 1950 across 19 observations, though the small sample means this is not a guarantee. The article also highlights Invesco QQQ, which tracks the Nasdaq-100 with a portfolio heavily tilted toward technology and growth companies.
- Precedent Wealth Partners LLC Acquires 1 , 116 Shares of Invesco QQQ $QQQ
Precedent Wealth Partners LLC raised its stake in Invesco QQQ (NASDAQ:QQQ) by 87.6% in the third quarter, according to a 13F filing with the SEC, bringing its holdings to 2,390 shares worth $1,768,000. Institutional investors hold 44.58% of the fund, and QQQ opened at $704.40 on Friday, within a 1-year range of $555.60 to $762.86. The latest quarterly dividend was $0.7514 per share, or $3.01 annualized with a 0.4% yield, down from the previous $0.8135. Technology stocks led a Nasdaq rebound, but QQQ faced pressure from renewed worries that massive AI capital expenditures may not generate adequate returns.
- Update: Nasdaq Marks Worst Day Since June as AI Spending Worries Resurface
- Nasdaq rises as SpaceX , Super Micro boost AI appetite
The Nasdaq rose as quarterly results from SpaceX and Super Micro Computer boosted appetite for AI-linked stocks, while Netflix fell 2.5% after forecasting weaker-than-expected fourth-quarter profit. SpaceX jumped 10.7% after Elon Musk called a merger with Tesla 'a good idea', and posted its first profit as a public company. Super Micro surged 12% after forecasting quarterly revenue and profit margin above estimates, while data centre operator CoreWeave slipped 2.4%. At 9:54 am ET the Nasdaq Composite was up 0.56% at 26,572.61, with Brent crude trading near $110 a barrel.
Related markets
Latest news
- Why DuPont Stock Trounced the Market on Tuesday
DuPont reported third-quarter results on Tuesday that beat analyst expectations and raised its full-year guidance, and its shares closed almost 9% higher that day. Net sales rose 4% year over year to just under $1.87 billion, above the average analyst estimate of $1.84 billion. GAAP net income from continuing operations jumped 68% to $171 million, and adjusted EPS climbed 62% to $2.09, versus an estimate of $1.86. The company raised its 2026 adjusted EPS guidance to $7.47 to $7.52 from $7.17 to $7.32, and narrowed its net sales outlook to about $7.19 billion from $7.16 billion to $7.19 billion. Strength in healthcare, aerospace and industrial water offset weakness in cyclical businesses, and the author notes the broader market remains weak.
- The S&P 500 Fell in Both September and October for Only the 17th Time Since 1950. Here's What Usually Followed.
The S&P 500 closed September at 7,651.54 and October at 7,580.07, two monthly losses of about 0.5% and 0.9% and the first such pair since 2023, yet it was still up about 11% this year. Across 16 past years since 1950 with declines in both months, the index rose over November and December in 12 and gained a median of about 3.7% over those two months, and was higher a year after October in 14, with a typical gain of about 13%. The two losing outcomes, 1989 and 2000, were followed by a recession starting in August 1990 and the dot-com bust, respectively. The CAPE valuation was around 41 at the start of October, and among the earlier years only 2000 came close, at about 39. The author says the two-month dip tells little by itself, and sees no reason in this history to stop or speed up regular index-fund investing, while keeping expectations modest given the valuation.
- Plain gold ring and gold bar prices on the morning of 4 Nov at SJC, PNJ, DOJI, Bảo Tín Minh Châu and Bảo Tín Mạnh Hải
Domestic gold prices were stable at the morning open compared with the previous session's close, with SJC gold bars quoted at 140.6 million dong per tael at most brands and gold rings at 133.7-139.5 million dong per tael. Spot gold was at 3,937 USD per ounce early in the session, up 0.2%, after falling 0.42% in the previous session. The earlier decline was linked to a stronger US dollar and higher US Treasury yields, while markets watched the US midterm elections. According to CME's FedWatch tool, traders put the probability of a Fed rate hike in December at 79%. The World Gold Council cut its 2026 investment demand growth forecast to 200 tonnes from 400 tonnes, while raising its forecast for central bank gold purchases.
- Thanh Cong Securities appoints Deputy General Director
Thanh Cong Securities (TCSC, ticker TCI) appointed Ms. Lưu Thị Việt Hà as Deputy General Director effective 2 Nov 2026, until replaced by a further document. In Q3 2026, total revenue was nearly 63.2 billion dong, down 40.8% year on year, with FVTPL gains accounting for about 34.8 billion dong of that. Total expenses rose 41.8% to 56.2 billion dong, mainly because financial costs increased by 40.6 billion dong after a 32.7 billion dong provision reversal in Q3 2025. After-tax profit fell 89.8% to 5.5 billion dong, and on 20 Oct 2026 the company sold 50,200 TAB shares of Freco Việt Nam to rebalance its portfolio, lowering its stake from 12.2147% to 11.4423%.
- Here's why AMD's stock is rising — and sending a confident message about the AI trade
According to the article, AMD is showing 'real' revenue from AI, and the stock is shrugging off concerns about sustainability. This has led to an upbeat forecast from the company.
- Why Herbalife Stock Is Up Today
Herbalife shares rallied about 8% on Tuesday after the company reported solid growth in third-quarter revenue and cash flow. Net sales rose 6% year over year to $1.35 billion, with Asia Pacific sales up 18%, and adjusted net income surged 33% to $68.5 million, or $0.64 per share. Year-to-date operating cash flow climbed 27% to $298 million, and the company's growing profits are helping it pay down debt and return more capital to shareholders, including a $250 million buyback announced in September. Encouraged by ongoing sales trends, Herbalife raised its 2026 net sales growth forecast to 4.9% to 5.9%, up from 2.5% to 5.5%.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.