What Happened?
A number of stocks jumped in the afternoon session after a robust earnings report and upgraded annual revenue forecast from networking giant Cisco Systems, fueled optimism in the software sector.
Cisco's impressive results were driven by strong demand from hyperscaler clients, the massive companies that dominate cloud computing, who are pouring capital into artificial intelligence infrastructure. This report was viewed by investors as a positive bellwether for the entire tech ecosystem.
The voracious appetite for AI is not only benefiting chipmakers but also the companies providing the essential networking hardware required to support these advanced systems. Cisco's performance reinforces the market narrative that the AI boom is generating substantial and sustained spending across the broader technology landscape, lifting investor sentiment sector-wide.
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:
- Project Management Software company monday.com (NASDAQ: MNDY) jumped 3.4%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
- Payments Software company Flywire (NASDAQ: FLYW) jumped 3.9%. Is now the time to buy Flywire? Access our full analysis report here, it’s free.
- Data Infrastructure company Oracle (NYSE: ORCL) jumped 3.7%. Is now the time to buy Oracle? Access our full analysis report here, it’s free.
- Data Analytics company CLEAR Secure (NYSE: YOU) jumped 1.9%. Is now the time to buy CLEAR Secure? Access our full analysis report here, it’s free.
- Automation Software company UiPath (NYSE: PATH) jumped 2.7%. Is now the time to buy UiPath? Access our full analysis report here, it’s free.
Zooming In On Flywire (FLYW)
Flywire’s shares are somewhat volatile and have had 11 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 dropped 3.2% on the news that the April PPI report sent Treasury yields to 10-month highs, with the 10-year yield rising to 4.49%.
This 'sticky and accelerating' inflation data effectively eliminated 2026 rate-cut hopes, raising the discount rate applied to long-duration growth earnings. BNN Bloomberg noted technology-related inflation was emerging as a structural concern, with computer software prices up year-over-year, potentially triggering a pullback in enterprise software spending.
Software companies sell long-duration subscription revenue, recurring contracts whose value is heavily weighted toward future earnings. When Treasury yields rise, the discount rate investors apply to those future cash flows rises with them, which mechanically reduces the present value of the business and compresses the price-to-earnings multiple.
Beyond the rate channel, the PPI print confirmed that software-specific inflation was running well above the headline rate. This 'sticky' pricing power for vendors is a double-edged sword: while it supports current revenue, it risks forcing enterprise customers to consolidate seats or delay new deployments to protect their own margins in a negative real-wage environment.
Flywire is up 17.9% since the beginning of the year, and at $16.39 per share, it is trading close to its 52-week high of $17.73 from May 2026. Investors who bought $1,000 worth of Flywire’s shares at the IPO in May 2021 would now be looking at an investment worth $466.89.
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