What Happened?

A number of stocks fell in the afternoon session after the White House announced plans to raise global tariffs to 15%. The major stock indexes, including the S&P 500 and Nasdaq, also sank amid the uncertainty. The downturn came after President Trump announced the tariff increase in a post on Truth Social, stating the new rate would be effective immediately on countries that had been, in his words, "'ripping' the U.S. off for decades." The move sparked concern among trade partners, with Europe warning that such tariffs could put U.S. trade deals at risk. The market-wide slide reflected investor worries about the potential impact of these new global trade policies Additionally, investor concerns about disruption in the software industry from advancements in artificial intelligence (AI) continued to cause a sector-wide sell-off. The market started the week with a more cautious tone, reflecting this unease. The current wave of AI development was seen as having similar traits to previous tech cycles, marked by genuine innovation but also by exuberant expectations and sharp market reactions to new developments.

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:

• Video Conferencing company RingCentral (NYSE: RNG) fell 13%. Is now the time to buy RingCentral? Access our full analysis report here, it’s free.
• Marketing Software company Sprout Social (NASDAQ: SPT) fell 8.5%. Is now the time to buy Sprout Social? Access our full analysis report here, it’s free.
• Vulnerability Management company Tenable (NASDAQ: TENB) fell 12.2%. Is now the time to buy Tenable? Access our full analysis report here, it’s free.
• HR Software company Asure Software (NASDAQ: ASUR) fell 11.7%. Is now the time to buy Asure Software? Access our full analysis report here, it’s free.
• Data Analytics company Amplitude (NASDAQ: AMPL) fell 8.4%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free.

Zooming In On RingCentral (RNG)

RingCentral’s shares are very volatile and have had 26 moves greater than 5% over the last year. But moves this big are rare even for RingCentral and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 36.3% on the news that the company reported fourth-quarter earnings that beat expectations and provided an upbeat profit forecast for the full year. The cloud communications provider posted revenue of $644 million, which was in line with Wall Street estimates. However, its adjusted earnings per share of $1.18 surpassed analyst expectations by 4.1%. The main driver for the stock's surge was the company's optimistic outlook for the upcoming year. Management guided for full-year 2026 adjusted earnings per share of approximately $4.87 at the midpoint, which beat consensus estimates by 2.1%. This stronger-than-expected profit guidance signaled confidence in the company's future performance, driving significant investor enthusiasm.

RingCentral is up 24.2% since the beginning of the year, but at $34.25 per share, it is still trading 13.3% below its 52-week high of $39.50 from February 2026. Investors who bought $1,000 worth of RingCentral’s shares 5 years ago would now be looking at an investment worth $87.68.

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