Norway stocks higher at close of trade; Oslo OBX up 0.22%

Investing.com -- Citizens downgraded SAP to Market Perform from Market Outperform after the company posted weaker-than-expected top-line results for the fourth quarter and signaled slower cloud momentum into 2026.

SAP reported non-IFRS EPS of €1.62 and operating profit of €2.83 billion, both ahead of consensus, but revenue missed forecasts. Total revenue came in at €9.68 billion versus expectations of €9.75 billion, while cloud revenue of €5.61 billion also fell short. More importantly, current cloud backlog growth slowed to 25% at constant currency, below expectations and the slowest pace in nine quarters.

Citizens said SAP cited a more pronounced slowdown than anticipated, driven by a deal mix skewed toward larger transformation projects with longer ramp periods and flexible structures. The firm also pointed to rising geopolitical tensions, which are pushing customers to consider sovereign SaaS options. The shares fell about 15% following the results and are down roughly 18% year to date.

Guidance for 2026 also came in largely below expectations on an as-reported basis due to foreign exchange. SAP guided to cloud revenue of about €25.3 billion to €25.7 billion, below consensus of €26.0 billion, and cloud and software revenue of €35.6 billion to €36.1 billion versus €36.3 billion expected. Non-IFRS operating profit guidance of €11.5 billion to €11.9 billion was roughly in line, while free cash flow of €10 billion was slightly ahead of consensus. SAP also said constant-currency cloud backlog growth will slightly decelerate in 2026 from 25% in 2025.

While Citizens said SAP remains a high-quality business with strong leadership and long-term potential in AI and the Business Data Cloud, it struck a more cautious tone heading into 2026. The firm said SAP appears to be past the peak of the S/4HANA upgrade cycle as a growth driver, while the Business AI cycle is still early and may require changes to products, implementation, pricing and support to scale meaningfully.

Citizens cut its 2026 non-IFRS EPS estimate to €6.84 from €6.87 and lowered its 2027 forecast to €7.41 from €8.00, both below consensus. It also introduced a 2028 EPS estimate of €8.08. The broker said SAP looks fairly valued at about 4.5x 2027 EV/revenue and 17x 2027 EV/free cash flow, broadly in line with peers.

Friday’s market has seen swings in various stocks based on news and other factors. Today, stocks like Tesla (TSLA) and Advanced Micro Devices ( are rallying, while companies like KLA-Tencor (KLAC) are facing setbacks. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers ($200 billion+ market cap)

• KLA-Tencor (KLAC) -11.29%
• Advanced Micro Devices (AMD); AMD (AMD) Quickly Falls 5.1% -4.03%
• Palantir Technologies (PLTR) -2.07%
• Lam Research (LRCX) -2.58%
• American Express (AXP) -2.37%
• Thermo Fisher Scientific (TMO) -1.97%
• Tesla (TSLA); Elon Musk’s SpaceX Is Said To Consider Merger With Tesla Or xAI +3.95%
• Metropcs Communications (TMUS) +3.55%

Large-Cap Stock Movers ($10-$200 billion market cap)

• Unity Software (U) -21.59%
• Rocket Companies (RKT) -14.83%
• AngloGold Ashanti (AU) -9.37%
• Coeur d’Alene Mines (CDE) -8.59%
• Yandex (NBIS) -8.75%
• Hecla Mining (HL) -7.73%
• Charter Communications (CHTR); Charter shares rise over 6% as earnings beat offsets revenue miss +10.14%
• SanDisk Corp-Exch (SNDK) +12.9%
• Deckers Outdoor (DECK) +14.83%
• Lumentum Holdings (LITE) +5.86%

Mid-Cap Stock Movers ($2-$10 billion market cap)

• Pennymac Financial Services (PFSI) -36.25%
• IES Holdings (IESC) -15.19%
• Cavco Industries (CVCO); Cavco Industries shares slip 4% as Q3 earnings, revenue fall short of estimates -16.32%
• Sanmina-SCI (SANM) -10.47%
• Corcept Therapeutics (CORT) -12.64%
• Mudrick Capital (HYMC) -8.11%
• TFS Financial (TFSL); TFS Financial shares fall as first quarter earnings miss estimates -7.49%
• Applied Optoelectronics (AAOI) +10.21%
• Robert Half International (RHI); Robert Half shares surge after beating Q4 expectations +22.02%

Small-Cap Stock Movers ($300 million-$2 billion market cap)

• TechCreate (TCGL) +155.33%
• Lexicon Pharmaceuticals (LXRX); Lexicon Pharmaceuticals launches public offering of common stock -21.18%
• Junee (SUPX); SuperX begins production at Japan supply center, secures orders -20.23%
• Beazer Homes USA (BZH) -14.21%
• Gores Holdings IV (UWMC) -14.12%
• Two Harbors Investment (TWO) -14.3%
• Red Rock Acquisition (NAMM) -14.53%
• Oxford Lane Capital (OXLC) -14.02%
• Anbio Biotechnology (NNNN) -11.11%
• AXT (AXTI) +18.19%

For real-time, market-moving news, join Investing Pro.

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

Investing.com -- Unity Software (NYSE:U) stock tumbled 12% Friday, while Take-Two Interactive Software (NASDAQ:TTWO) fell 7% and Roblox Corporation (NYSE:RBLX) dropped 8% following Google’s announcement of Project Genie, a new AI-powered world creation tool.

The gaming and interactive software companies saw their shares decline as Google, a unit of Alphabet (NASDAQ:GOOGL), unveiled its experimental prototype that allows users to create, explore, and remix interactive virtual worlds. The new offering appears to have sparked investor concerns about potential competition for established game development platforms.

Project Genie, which is rolling out to Google AI Ultra subscribers in the U.S., leverages the company’s Genie 3 world model to generate dynamic, interactive environments in real time. The tool enables users to create customizable worlds through text prompts and images, with features including "World Sketching," exploration capabilities, and remixing options.

The prototype represents Google’s push into immersive content creation, potentially challenging companies like Unity, which provides tools for game developers, and platforms like Roblox, which offers user-generated gaming experiences. Take-Two, known for franchises like Grand Theft Auto, could also face competitive pressure from simplified content creation tools.

Google described Project Genie as part of its broader artificial general intelligence (AGI) mission, noting that the technology simulates physics and interactions for dynamic environments while maintaining consistency across various scenarios.

While the company acknowledged several limitations of the current prototype, including imperfect visual rendering and occasional control issues, the technology signals Google’s ambitions in the interactive content creation space that has traditionally been dominated by specialized gaming and development platforms.

Investing.com -- After a challenging 2025 where artificial intelligence concerns weighed heavily on application software stocks, 2026 offers potential for improved sentiment as AI-related risks appear less significant than initially feared. Morgan Stanley has identified several standout performers poised to benefit from this shifting landscape.

While broad upward estimate revisions remain limited, selective opportunities exist within the sector. Here are the top application software companies positioned for success in 2026:

HubSpot

Despite maintaining high-teens growth throughout 2025, HubSpot Inc (NYSE:HUBS) experienced significant multiple compression, with shares down 55% on a next-twelve-months basis. As one of the few established platform plays serving SMBs, HubSpot’s value proposition becomes increasingly important for customer retention as businesses seek to extract value from AI insights across the front office.

Upmarket momentum and multi-hub consolidation provide long runways for growth, while credit consumption is emerging as a potential upside driver based on strong AI product engagement. Trading at approximately 4.5x EV/Sales, HubSpot offers compelling value compared to broader SaaS at 5.5x.

HubSpot has seen several analyst actions, with Stifel and BMO Capital lowering their price targets, citing software multiple compression and SMB concerns, respectively. In contrast, Citi reiterated its Buy rating and opened a 30-day upside catalyst watch on the company.

Klaviyo

Shares compressed roughly 40% on an EV/NTM Sales basis during 2025 amid concerns about growth durability and potential pressure from ’agentic commerce.’ However, Klaviyo Inc (NYSE:KVYO) is entering an emerging platform status with its Service offering, a suite of tools specifically built for direct-to-consumer brands—a historically underinvested niche.

Management suggests full adoption of the expanded portfolio could drive a 2-3x ARPU uplift, positioning Klaviyo for estimate upside while maintaining best-in-class growth of at least 21-22% in 2026.

In recent news, Klaviyo reported that its customers generated a record $3.8 billion in Klaviyo Attributed Value during the Black Friday weekend, a 27% year-over-year increase. The company also appointed Chano Fernandez as co-CEO to share leadership responsibilities with co-founder Andrew Bialecki.

Wix

Despite delivering accelerated revenue growth against tough price-benefitted comparables, Wix.Com Ltd (NASDAQ:WIX) saw its EV/NTM FCF multiple compress by over 50% through 2025.

Multiple catalysts for 2026 include Base44 becoming a more material driver to the model, with management setting a floor for blended business profitability at mid-20s FCF margin, and the launch of a new Self-Creators product to re-engage growth in Wix’s largest customer segment.

Trading at approximately 6x EV/CY27 FCF, improved execution could attract investors back to this stable core business.

Wix.com announced its Board of Directors has authorized a $2 billion share and convertible note repurchase program for fiscal years 2026-2027. The company also launched Wix Harmony, a new AI-powered website builder.

Amplitude

Upgraded to Overweight from Equal-weight, Amplitude Inc (NASDAQ:AMPL) stands to benefit from capturing increased digital product user behavior data as GenAI accelerates development of mobile and web applications.

The company has worked through optimization headwinds from Covid-era contracts while experiencing tailwinds from broader digital product development. Multi-product adoption presents a long runway for growth, with Agents offering an opportunity to better tie the portfolio together.

A recent development saw Amplitude report that its annual recurring revenue (ARR) showed 15.8% year-over-year organic growth in its latest quarter. The company also announced the acquisition of InfiniGrow, an AI marketing analytics company, to enhance its platform’s capabilities.

BlackLine

Named as the Back Office Top Pick, Blackline Inc (NASDAQ:BL) shows strong probability of positive estimate revisions and accelerating growth following three years of strategic changes.

Q3 results demonstrated strength with new customer bookings up 45% year-over-year and average new deal size up 111%. Management now expects gross bookings growth of 15% in Q4 and 20% in FY26, with constant currency ARR projected to accelerate from 7% to 10-11% by Q4 2026.

BlackLine acquired WiseLayer, a company specializing in AI-powered agents for finance and accounting, to integrate into its platform. Separately, activist investor Engaged Capital announced its intention to nominate four director candidates to the company’s board.

Descartes

With trough shipping volumes likely in the past, organic growth is expected to accelerate into FY27/CY26 as Descartes (NASDAQ:DSGX) continues gaining market share, laps easy year-over-year comparisons, and benefits from a professional services refresh cycle.

Following a recent 7% workforce reduction, increasing operating leverage should drive accelerating adjusted EBITDA growth to 15%+ and EPS growth to 20%+.

Navan

Positioned as an AI beneficiary, Navan Inc (NASDAQ:NAVN) is leveraging technology to accelerate growth by automating customer service and travel agent functions, leading to market share gains.

With proprietary travel content and data creating a defensible moat, the company offers an attractive opportunity at 4x CY27 Sales, below peers at 5x, while maintaining 20%+ growth.

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

Investing.com -- Rocket Companies (NYSE:RKT) stock fell 12% Friday after U.S. President Donald Trump nominated Kevin Warsh as the next Federal Reserve chairman and following disappointing results from PennyMac Financial Services (NYSE:PFSI).

The mortgage originator’s shares tumbled alongside other companies in the sector, with loanDepot (NYSE:LDI) dropping 4% and UWM Holdings (NYSE:UWMC) declining 9% during the session. The sector-wide sell-off came as investors processed Trump’s announcement that Warsh would replace current Fed Chair Jerome Powell when his term ends in May 2026.

PennyMac Financial Services, which provides mortgage services similar to Rocket, reported that its Servicing segment net revenue fell 22% YoY to $153.9 million, significantly below analyst estimates of $233.3 million. The segment handles loan servicing for newly originated loans under holding for sale and loans serviced for others.

The double blow of potential changes in monetary policy leadership and weak industry results appeared to weigh heavily on investor sentiment toward mortgage companies, which are particularly sensitive to interest rate expectations and housing market conditions.

Warsh, a former Federal Reserve governor who served during the 2008 financial crisis, has previously advocated for monetary policy normalization, raising questions about the future direction of interest rates and their impact on the mortgage industry.

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