Decimated by AI replacing it, learning provider Chegg (CHGG) will continue to drop. The firm lost $0.01 in non-GAAP EPS. Revenue fell by nearly half to $72.7 million.
Upwork (UPWK) lost around 24% in post-market trade after it posted a 3.6% increase in revenue Y/Y. Revenue of $198.4 million resulted in $0.12 per share in earnings. Despite positive cash flow and cash generated from operations, markets are panicking for no reason.
The drop in UPWK stock is a potential gift for value hunters.
Watch for a follow-through recovery in Oracle (ORCL) stock. The stock rallied by nearly 10% after analysts at D.A. Davidson upgraded the stock. The $180 price target is based on the analyst's belief that OpenAI emerges as the winner in the AI race. That would put Microsoft (MSFT) and Nvidia (NVDA) in the lead as well. Moreover, CoreWeave (CRWV) benefits if OpenAI grows its market share for AI chatbot subscriptions.
AppLovin (APP) is another software stock to watch today. A short seller apologized for describing its bearish research as inaccurate. The short seller, CapitalWatch, likely faced legal action from AppLovin.
APP stock attracted a 4.72% short interest. The stock is attractive for its profitability, growth, and EPS revisions. Valuations are fair, so that might limit the stock’s near-term rebound.
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