HubSpot, nCino, Rapid7, and Health Catalyst Stocks Trade Down, What You Need To Know

Stock Story

What Happened?

A number of stocks fell in the afternoon session after investors grew increasingly concerned that the billions of dollars being invested into artificial intelligence may not generate sufficient profits.

This sentiment fueled fears of a potential "AI bubble," leading to a significant downturn in the technology-heavy Nasdaq Composite index. The selloff was intensified after chipmaker Broadcom warned that increased sales of AI systems could lead to thinner profit margins, causing its stock to tumble. Subsequently, the broader market questioned whether the massive spending on chips and data centers would produce a worthwhile return on investment. This uncertainty caused a market recalibration, with investors rotating capital out of more speculative tech stocks and into more stable assets.

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:

Sales Software company HubSpot fell 3.4%. Is now the time to buy HubSpot? Access our full analysis report here, it’s free for active Edge members.
Banking Software company nCino fell 3.6%. Is now the time to buy nCino? Access our full analysis report here, it’s free for active Edge members.
Vulnerability Management company Rapid7 fell 3.4%. Is now the time to buy Rapid7? Access our full analysis report here, it’s free for active Edge members.
Data Analytics company Health Catalyst fell 3.3%. Is now the time to buy Health Catalyst? Access our full analysis report here, it’s free for active Edge members.

Zooming In On nCino (NCNO)

nCino’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 3.8% on the news that the company's Board of Directors authorized a new $100 million stock repurchase program.

This move signaled management's confidence in the business's strength and future outlook. The new buyback followed the full use of a previous stock repurchase authorization. CEO Sean Desmond stated the decision reflected the company's commitment to using its capital to increase stockholder value. The announcement also came after the company reported positive third-quarter results, including revenue growth and margin expansion.

A stock buyback reduces the number of shares on the market, which can increase the value of the remaining shares and often suggests that a company's leadership believes its stock is a good investment.

nCino is down 27% since the beginning of the year, and at $24.40 per share, it is trading 32.1% below its 52-week high of $35.96 from December 2024. Investors who bought $1,000 worth of nCino’s shares 5 years ago would now be looking at an investment worth $325.85.

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Dj Cfa Health Care:Insider Review For Week Ended 12-Dec

Reuters

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Cybersecurity Stocks Q3 Earnings Review: Qualys (NASDAQ:QLYS) Shines

Stock Story

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the cybersecurity industry, including Qualys and its peers.

Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location.

The 9 cybersecurity stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.

Best Q3: Qualys

Originally developed to address the growing complexity of IT security in the cloud era, Qualys provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.

Qualys reported revenues of $169.9 million, up 10.4% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was an exceptional quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

"In Q3, we continued to execute well, demonstrated by another quarter of solid revenue growth and profitability," said Sumedh Thakar, Qualys' president and CEO.

Qualys pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 25.5% since reporting and currently trades at $152.08.

Is now the time to buy Qualys? Access our full analysis of the earnings results here, it’s free for active Edge members.

CrowdStrike

Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.

CrowdStrike reported revenues of $1.23 billion, up 22.2% year on year, outperforming analysts’ expectations by 1.6%. The business had a strong quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $518.25.

Is now the time to buy CrowdStrike? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Varonis Systems

Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.

Varonis Systems reported revenues of $161.6 million, up 9.1% year on year, falling short of analysts’ expectations by 2.7%. It was a softer quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and revenue guidance for next quarter slightly missing analysts’ expectations.

Varonis Systems delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 47.4% since the results and currently trades at $33.17.

Read our full analysis of Varonis Systems’s results here.

Rapid7

With its name inspired by the need for quick responses to cyber threats, Rapid7 provides cybersecurity software and services that help organizations detect vulnerabilities, monitor threats, and respond to security incidents.

Rapid7 reported revenues of $218 million, up 1.5% year on year. This result beat analysts’ expectations by 0.9%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

Rapid7 had the slowest revenue growth among its peers. The company lost 25 customers and ended up with a total of 11,618. The stock is down 8.1% since reporting and currently trades at $16.36.

Read our full, actionable report on Rapid7 here, it’s free for active Edge members.

Palo Alto Networks

Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.

Palo Alto Networks reported revenues of $2.47 billion, up 15.7% year on year. This print surpassed analysts’ expectations by 0.5%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

The stock is down 4.9% since reporting and currently trades at $190.67.

Read our full, actionable report on Palo Alto Networks here, it’s free for active Edge members.

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Atossa Therapeutics stock soars after FDA grants rare pediatric disease status

Investing.com

Investing.com -- Atossa Therapeutics Inc (NASDAQ:ATOS) stock jumped 13.6% in premarket trading Thursday after the company announced that the U.S. Food and Drug Administration has granted Rare Pediatric Disease (RPD) designation to its (Z)-Endoxifen drug candidate for the treatment of Duchenne Muscular Dystrophy (DMD).

The clinical-stage biopharmaceutical company said the designation is an important regulatory milestone that validates the science behind (Z)-Endoxifen’s potential as a treatment for DMD, a serious childhood disease. The RPD status is given to drug candidates targeting serious conditions primarily affecting individuals from birth to 18 years of age.

Upon approval of a qualifying marketing application, drugs with RPD designation may be eligible for a Priority Review Voucher, which can be used to obtain priority review for a future application or sold to another sponsor. Recent Priority Review Voucher sales have ranged from $100 million to $160 million over the past 18-24 months, according to the company.

"DMD is one of the most devastating childhood diseases. Families urgently need better options beyond steroids and gene-targeted approaches," said Steven Quay, President and Chief Executive Officer of Atossa Therapeutics.

The company noted that (Z)-Endoxifen does not target specific exon defects, potentially offering a broader treatment approach for DMD patients compared to existing therapies. While oncology remains Atossa’s core focus, this development highlights the drug’s potential as a platform therapy in both cancer and rare diseases.

Atossa plans to advance the DMD program to clinical trials, with the RPD designation providing a regulatory framework and enhanced interaction with the FDA as the company defines its clinical development path.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Rapid7 2026 Cybersecurity Trends Outlook: Geopolitical Tensions And Insider Threats Among Top Risks

Reuters

Rapid7

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5 Insightful Analyst Questions From nCino’s Q3 Earnings Call

Stock Story

nCino’s third quarter was marked by revenue and non-GAAP profitability that exceeded analysts’ expectations, yet the market responded negatively, reflecting concerns highlighted by management about near-term headwinds and competitive pressures. CEO Sean Desmond pointed to strong momentum in AI adoption and platform expansion across customer segments, but also noted that discretionary spending by financial institutions remains constrained, driving a shift toward more targeted, efficiency-focused technology investments. Desmond emphasized, “Banks remain very aggressive on their tech investment with AI driving the narrative,” while acknowledging that shifts in customer purchasing patterns require continued operational discipline.

Is now the time to buy NCNO? Find out in our full research report (it’s free for active Edge members).

nCino (NCNO) Q3 CY2025 Highlights:

Revenue: $152.2 million vs analyst estimates of $147.3 million (9.6% year-on-year growth, 3.3% beat)
Adjusted EPS: $0.31 vs analyst estimates of $0.21 (49.9% beat)
Adjusted Operating Income: $39.86 million vs analyst estimates of $32.74 million (26.2% margin, 21.8% beat)
Revenue Guidance for Q4 CY2025 is $147.5 million at the midpoint, roughly in line with what analysts were expecting
Management raised its full-year Adjusted EPS guidance to $0.91 at the midpoint, a 15.3% increase
Operating Margin: 7.7%, up from -0.6% in the same quarter last year
Billings: $109.3 million at quarter end, up 10.4% year on year
Market Capitalization: $2.85 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From nCino’s Q3 Earnings Call

Michael Infante (Morgan Stanley) asked about sustainability of operating margin expansion and whether AI efficiencies could accelerate medium-term margin targets. CFO Gregory Orenstein responded that ongoing cost discipline and AI-driven productivity gains should support progress toward their margin goals.
Saket Kalia (Barclays) questioned the sources of ACV growth and health of the customer base. CEO Sean Desmond emphasized broad-based demand, particularly for AI and automation, with banks increasing tech budgets despite macro caution.
Alexander Sklar (Raymond James) sought details on large bank commercial expansions and market opportunity. Orenstein explained expansion comes from deeper penetration within existing customers and noted significant white space remains in core commercial lending.
Charles Nabhan (Stephens) asked about the drivers of mortgage business outperformance and segment dynamics. Desmond cited new wins in large banks and strong traction in independent mortgage banks, with past market share gains now benefiting revenue.
Koji Ikeda (Bank of America) inquired about factors needed to drive greater expansion activity among existing customers. Desmond highlighted opportunities from cross-selling and platform adoption across commercial, consumer, and mortgage lines.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will closely watch (1) the pace of AI Banking Advisor adoption and expansion to broader customer segments, (2) successful execution of platform pricing transitions and early renewals, and (3) acceleration of international deals, particularly in EMEA and Japan. Additional focus will be on the impact of operational efficiency initiatives and gross margin trends as the company advances its AI and automation strategy.

nCino currently trades at $24.80, down from $25.57 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return).

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