What Happened?
A number of stocks jumped in the afternoon session after investors continued to buy the dip despite renewed geopolitical jitters as the U.S.-Iran ceasefire came under doubt following the seizure of the Iranian vessel Touska.
While the fragile peace remained in question ahead of the ceasefire deadline later in the week, the software sector rebounded from a harsh "valuation reset" catalysed by AI fears. High-growth names like Datadog and ServiceNow led the charge as markets continued to decouple from Middle Eastern energy volatility. This resilience reflected a growing conviction that enterprise software remains a core structural winner, regardless of short-term macro turbulence.
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:
- Communications Platform company Bandwidth (NASDAQ: BAND) jumped 5.3%. Is now the time to buy Bandwidth? Access our full analysis report here, it’s free.
- E-commerce Software company Commerce (NASDAQ: CMRC) jumped 7%. Is now the time to buy Commerce? Access our full analysis report here, it’s free.
- HR Software company Paycom (NYSE: PAYC) jumped 5%. Is now the time to buy Paycom? Access our full analysis report here, it’s free.
Zooming In On Commerce (CMRC)
Commerce’s shares are very volatile and have had 22 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 5 days ago when the stock gained 4.8% on the news that the company's board adopted a stockholder rights plan to defend against an unsolicited takeover bid from Rezolve Ai PLC.
The move came after Commerce.com rejected an all-share acquisition proposal from Rezolve Ai that implied a 47% discount to its share price, which the board concluded significantly undervalued the business. This defensive measure, often called a "poison pill," is designed to prevent a hostile takeover and gives the board time to evaluate other potential offers.
The plan issues special rights to existing shareholders that become exercisable if an outside party acquires a 10% stake without board approval. Rezolve Ai criticized the action, calling it a "desperate" attempt by a "failing Board to entrench itself." However, the stock's rise suggested investors supported the board's decision to protect shareholder value from the low offer.
Commerce is down 22.5% since the beginning of the year, and at $3.15 per share, it is trading 42.9% below its 52-week high of $5.51 from November 2025. Investors who bought $1,000 worth of Commerce’s shares 5 years ago would now be looking at only $59.90.
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