What Happened?

A number of stocks jumped in the afternoon session after investors appeared to buy the dip amid heightened uncertainty triggered by resurgent inflation fears and escalating geopolitical tensions. 

When an entire sector gets beaten down, even modest buying pressure can create outsized moves as short sellers cover and value buyers step in. Following double-digit declines across most names, the rebound 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:

• Design Software company Adobe (NASDAQ: ADBE) jumped 3.9%. Is now the time to buy Adobe? Access our full analysis report here, it’s free.
• Network Security company Palo Alto Networks (NASDAQ: PANW) jumped 4.3%. Is now the time to buy Palo Alto Networks? Access our full analysis report here, it’s free.
• Vertical Software company Manhattan Associates (NASDAQ: MANH) jumped 5.7%. Is now the time to buy Manhattan Associates? Access our full analysis report here, it’s free.
• Banking Software company nCino (NASDAQ: NCNO) jumped 5%. Is now the time to buy nCino? Access our full analysis report here, it’s free.
• Document Management company Dropbox (NASDAQ: DBX) jumped 4.6%. Is now the time to buy Dropbox? Access our full analysis report here, it’s free.

Zooming In On Manhattan Associates (MANH)

Manhattan Associates’s shares are somewhat volatile and have had 12 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 1 day ago when the stock gained 3.7% on the news that the company presented its strategic vision at the 47th Annual Raymond James Institutional Investor Conference, highlighting strong performance and a focus on growth areas. During the conference, the company's CEO and CTO pointed to a record fourth-quarter for bookings, with 75% of these coming from new customers. They emphasized that the company's strategy centered on its AI-native platform and helping clients move to the cloud. Management expressed confidence in achieving over 20% growth in cloud revenue. The presentation also noted high win rates against competitors, signaling strong demand for its products and services.

Manhattan Associates is down 11.9% since the beginning of the year, and at $147.44 per share, it is trading 35.3% below its 52-week high of $227.94 from July 2025. Investors who bought $1,000 worth of Manhattan Associates’s shares 5 years ago would now be looking at an investment worth $1,228.

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