Is it Time to Buy Back in On These Software Stocks?

Software stocks have suffered sharply since early-2024 highs

Patrick Martin

Managing Editor

Oct 9, 2024 at 2:06 PM

TEAM
MDB
zs

Cloud-based software stocks were flying high to start the year, but have undergone an extensive correction since the spring. Many heavy hitters in the sector are higher today, so is it time to buy back in at intriguing entry points?

MongoDB Inc (NASDAQ:MDB) stock was last seen up 4.1% to trade at $270.20, but is 47.6% off its Feb. 12 record high of $509.62. The shares are 34% lower in 2024, thanks in large part to a massive post-earnings bear gap of 23.9% on May 31.

Zscaler Inc (NASDAQ:ZS) stock is up 4.2% to trade at $184.35, heading for its highest level since a Sept. 4 post-earnings plummet of 18.6%. ZS has shed 29% off its Feb. 9 all-time high of $259.61, and are still 16.7% lower in 2024.

Atlassian Corp (NASDAQ:TEAM) stock is up 5.3% to trade at $176.91, on track for its highest close since a 17.1% drawdown after the company's Aug. 2 report. TEAM has bounced off its annual lows of $135.29 from Aug. 5, but remains 31.5% off its Jan. 30 record peak. Year-to-date, the shares are down 25.5%.

Heading into one last earnings report for all three names, it will be interesting to monitor price action that's starting to resemble a V-shaped rally, but needs a lot more momentum to get going.

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