What Happened?

A number of stocks fell in the afternoon session after a deepening Treasury selloff and higher oil prices pushed the benchmark 10-year yield to 5.218%, reinforcing expectations of further Federal Reserve rate hikes. 

Morningstar reported that stocks slid and technology shares led early declines as the week began, a week that also includes key jobs data. A Treasury selloff means investors are selling U.S. government bonds. When bond prices fall, their yields, or the return investors receive, rise. Higher yields tend to weigh heavily on technology and software stocks. Much of the value of these companies is based on profits expected many years into the future. 

When investors can earn more than 5% on relatively safe government bonds, those distant earnings become less attractive in comparison, which can lower the prices investors are willing to pay for growth stocks. Rising oil prices add to the pressure because they can push inflation higher. Persistent inflation could lead the Federal Reserve to keep raising interest rates, increasing borrowing costs for businesses and consumers. The upcoming jobs report may give investors more clues about the Fed's next steps.

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:

• Marketing Software company Braze (NASDAQ: BRZE) fell 4.2%. Is now the time to buy Braze? Access our full analysis report here, it’s free.
• Vertical Software company Manhattan Associates (NASDAQ: MANH) fell 3.4%. Is now the time to buy Manhattan Associates? Access our full analysis report here, it’s free.
• Hospitality & Restaurant Software company Agilysys (NASDAQ: AGYS) fell 2.2%. Is now the time to buy Agilysys? Access our full analysis report here, it’s free.

Zooming In On Braze (BRZE)

Braze’s shares are extremely volatile and have had 53 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 19 days ago when the stock dropped 18.9% on the news that the company reported its second-quarter 2026 financial results. According to a company press release and earnings commentary, Braze delivered strong top-line performance, with revenue of $227.2 million increasing 26.2% year-over-year and beating analyst estimates of $220.4 million. The company successfully executed its enterprise expansion strategy, ending the quarter with 2,789 customers (up from 2,713 sequentially) and maintaining a net revenue retention rate of 110%. Profitability also improved significantly, with operating margins expanding to negative 8% from negative 21.5% a year ago, which drove adjusted operating income to $21.96 million—a robust 24.3% beat over expectations. Furthermore, billings surged 30.6% year-over-year to $231.5 million, supported by healthy adoption of its AI-powered customer engagement tools and the recent strategic acquisition of OfferFit, which management noted is driving early enterprise momentum. 

However, despite raising full-year revenue guidance to a midpoint of $911.5 million and full-year adjusted EPS to $0.65, investor sentiment was dampened by a mixed near-term outlook. Sequential customer additions showed signs of slowing, free cash flow margin dipped to 9.6% from 12.7% in the previous quarter, and management's earnings per share guidance for the upcoming third quarter fell short of Wall Street expectations. 

While the revenue and operating income beats highlighted solid underlying execution, the lighter near-term profit forecast triggered some selling pressure. Still, many analysts remain bullish; following the report, Raymond James analyst Brian Peterson raised the firm's price target on Braze to $33.00 from $27.00, advising investors to buy the dip and calling the customer engagement platform a secular winner.

Braze is down 27.7% since the beginning of the year, and at $23.52 per share, it is trading 35% below its 52-week high of $36.19 from December 2025. Investors who bought $1,000 worth of Braze’s shares at the IPO in November 2021 would now be looking at an investment worth $251.85.

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