Workiva, Q2 Holdings, Procore Technologies, HubSpot, and nCino Shares Skyrocket, What You Need To Know

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What Happened?

A number of stocks jumped in the afternoon session after software stocks extended gains as the broader stock market undergoes an overhaul regarding the future of the artificial intelligence trade. 

Repricing continued to unfold following the previous week’s sharp retreat in tech equities, when mounting financing hurdles weakened demand for physical artificial intelligence builders. As reported by CNBC, high-growth software stocks are looking increasingly attractive as market participants rotate money out of the semiconductor sector and into the parts of the AI trade that they believe will outperform going forward. CNBC noted that this rotation is being driven by growing investor weariness that the broader market will face a challenging environment next year due to a ballooning U.S. fiscal deficit, higher inflation, and an anticipated deceleration in the massive AI infrastructure capital expenditure cycle. 

Furthermore, CNBC explained that the earlier narrative surrounding "software obsolescence"—where investors feared AI agents could replace traditional software packages—has largely receded as strong earnings expectations and new AI product partnerships revive confidence in the sector. 

Ultimately, CNBC observed that this shift in sentiment has created a pronounced divergence in the market, with software sector ETFs climbing sharply in recent months while semiconductor ETFs suffer extended, historic losing streaks.

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:

Zooming In On Q2 Holdings (QTWO)

Q2 Holdings’s shares are quite volatile and have had 16 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 biggest move we wrote about over the last year was 12 months ago when the stock gained 13.9% on the news that the company reported third-quarter 2025 results that exceeded Wall Street's expectations for revenue and profit and provided upbeat guidance. For the quarter, revenue grew 15.2% year-over-year to $201.7 million, beating analyst estimates. The company's profitability also saw a significant improvement, with GAAP earnings per share of $0.23 coming in 64.3% above consensus. Adding to the positive sentiment, Q2 Holdings guided for fourth-quarter revenue slightly ahead of expectations and raised its full-year EBITDA forecast above analyst projections. 

This performance was underpinned by expanding profitability, as the operating margin swung to a positive 5.5% from a negative 7.3% in the prior year's quarter.

Q2 Holdings is down 4.5% since the beginning of the year, and at $66.29 per share, it is trading 12.2% below its 52-week high of $75.49 from December 2025. Investors who bought $1,000 worth of Q2 Holdings’s shares 5 years ago would now be looking at only $813.62.

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