Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
A number of stocks fell in the morning session after markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut. The U.S. Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.9% month-over-month in July, far exceeding the 0.2% increase that economists had predicted. Annually, prices at the wholesale level jumped 3.3%, also surpassing the 2.5% forecast. This hotter-than-expected data has poured cold water on widespread expectations for an interest rate cut from the Federal Reserve next month. Persistent inflation makes it less likely for the central bank to ease monetary policy. Sectors with high-growth stocks, such as SaaS, are particularly sensitive to interest rate changes, as the prospect of higher rates for longer can diminish the present value of their future earnings, leading to a decline in stock prices.
A number of stocks jumped in the afternoon session after the SaaS sector continued to rally as favorable inflation data bolstered hopes for a Federal Reserve interest rate cut. This optimism was largely driven by a benign July Consumer Price Index (CPI) report, which solidified investor expectations for a Federal Reserve interest rate cut. Following the release of the inflation data, which showed a year-over-year increase of 2.7%, the probability of a rate cut in September surged to over 96%. Lower interest rates are typically beneficial for growth-oriented technology stocks, as they can reduce borrowing costs and increase the present value of future earnings. Adding to the positive sentiment was a 90-day delay in the imposition of higher tariffs on Chinese goods, which reduced trade-related uncertainty for the technology sector.
Business automation software provider Upland Software (NASDAQ: UPLD) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 23% year on year to $53.38 million. On the other hand, next quarter’s revenue guidance of $49.8 million was less impressive, coming in 0.6% below analysts’ estimates. Its non-GAAP profit of $0.15 per share was 18.2% below analysts’ consensus estimates.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
Business automation software provider Upland Software (NASDAQ: UPLD) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 23% year on year to $53.38 million. On the other hand, next quarter’s revenue guidance of $49.8 million was less impressive, coming in 0.6% below analysts’ estimates. Its non-GAAP profit of $0.15 per share was 18.2% below analysts’ consensus estimates.
Business automation software provider Upland Software (NASDAQ: UPLD)
will be announcing earnings results this Thursday before market open. Here’s what to expect.
Intrigued by the market activity one hour before the close of the markets on Monday? Uncover the key winners and losers of today's session in our insightful analysis.
Shares of business automation software provider Upland Software (NASDAQ: UPLD)
jumped 20.2% in the morning session after the company announced it had successfully refinanced its debt. The AI-powered software provider entered into an agreement with Sound Point Capital for a new six-year, $240 million term loan, which extended its debt maturity to 2031. The deal also included a $30 million revolving credit facility that further enhanced the company's financial liquidity. Investors reacted positively to the news because the refinancing improved Upland's financial flexibility. The company stated this allowed for further investment into its AI-powered knowledge and content management solutions, signaling a focus on future growth and long-term value.
Unprofitable companies face headwinds as they struggle to keep operating expenses under control.
Some may be investing heavily, but the majority fail to convert spending into sustainable growth.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how sales and marketing software stocks fared in Q1, starting with Upland (NASDAQ:UPLD).
From commerce to culture, software is digitizing every aspect of our lives. Companies bringing it to life have been rewarded with high valuation multiples that make fundraising easier,
but they have weighed on the returns lately as the industry has pulled back by 6.7% over the past six months. This drop was disappointing since the S&P 500 climbed 1.7%.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes.
This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
