Software Stocks Soar in Rotational Trade: Monday.com Up 7%, HubSpot Up 6%, Intuit Up 5%
Shares of monday.com (up 6.9%), HubSpot (up 6.6%), and Intuit (up 5.2%) rose on Tuesday amid a broader tech selloff, driven by a rotation into software stocks. The move follows weekend reports on AI revenue projections and tech commitments. All three stocks have declined significantly year-to-date but showed recent earnings growth.
How this was made
The 30-second read
Why it matters
It links the outperformance of MNDY, HUBS, and INTU to (1) AI hardware risk-off, (2) software’s perceived counter-cyclicality, and (3) prior quarter fundamentals including AI ARR growth, subscription growth, buybacks, and raised EPS guidance.
Market read
Traders can use the described rotation and the upcoming INTU earnings date to manage relative exposure between software and AI hardware-linked names.
What to watch
The text emphasizes starting drawdowns and prior quarter metrics, but does not address valuation reset risk or whether AI ARR growth can offset broader SaaS pricing concerns into 2027.
Background
The article frames a late-session rotation into enterprise software as AI hardware sells off, citing weaker-than-expected AI revenue run-rate projections and higher Treasury yields.
Ticker impact
monday.com is up about 6.9% as the article cites Q2 revenue growth and AI ARR doubling, supporting the rotation into software.
Likely supports continued relative strength into the close, but follow-through depends on broader rates and AI sentiment.
The piece ties the move to macro rotation and references specific Q2 metrics, but it is not a fresh earnings release in this article.
HubSpot shares rise roughly 6.6% as the article highlights 20% subscription revenue growth, margin expansion, and an added $1B buyback.
Supports a bid for software peers, though magnitude may fade without new catalysts before next earnings.
The article provides concrete operating and buyback details, but the catalyst is largely macro-driven and not newly disclosed today.
Intuit is up about 5.2% and the article flags raised fiscal Q4 non-GAAP EPS guidance, with next results due Aug. 25 after the close.
May see continued strength into the Aug. 25 print, with volatility risk around guidance expectations.
The article includes specific guidance numbers and a clear upcoming event date, but the move is still described as part of a broader sector rotation.
Market effects
Suggests relative-value rotation from AI hardware exposure toward enterprise software as discount-rate pressure and AI capex concerns weigh on semis.
Primarily US-focused, but the macro drivers (Treasury yields, AI capex expectations) can spill into global tech factor performance.
If the rates-driven AI hardware selloff persists, global software multiples may remain supported versus hardware-linked names.
Counterpoint
The rally may be a short-covering relief bounce rather than a durable re-rating, since the article’s core catalyst is macro rotation not new company-specific disclosures today.
Key entities
- companymonday.com
Enterprise software name cited as up ~6.9% with Q2 revenue growth and AI ARR doubling quarter over quarter.
- companyHubSpot
Enterprise software name cited as up ~6.6% with 20% subscription revenue growth, margin expansion, and an additional $1B buyback.
- companyIntuit
Enterprise software/fintech name cited as up ~5.2% with raised fiscal Q4 non-GAAP EPS guidance and next earnings on Aug. 25 after the close.
- ETFiShares Expanded Tech-Software ETF (IGV)
Up about 0.6% intraday in the article’s described inverse pairing versus semis.
- ETFiShares Semiconductor ETF (SOXX)
Down sharply in the article’s described inverse pairing versus software.
