Software stocks have been under pressure this year
Software stocks are facing heightened volatility this week, with Adobe Inc (NASDAQ:ADBE), Datadog Inc (NASDAQ:DDOG), and Dynatrace Inc (NYSE:DT) all struggling due to disappointing earnings guidance, market-wide headwinds, and sector-specific pressures.
Adobe stock was last seen down 12.3% at $384.52 after issuing lackluster fiscal second-quarter guidance, projecting earnings of $4.98 on revenue of $5.8 billion, but the forecast failed to inspire confidence, dragging the stock 13% lower in 2025 and 32.6% lower over the last 12 months.
Datadog stock has also faced selling pressure since the start of the year, tumbling 8.2% after its early February fourth-quarter earnings report. The observability platform provider posted $737.73 million in revenue, though net income fell to $45.59 million. Broader market volatility, geopolitical tensions, and Trump’s increased tariffs on Canadian imports have further fueled uncertainty, leaving DDOG down 29.3% year-to-date. At last check, DDOG is off 1.6% at $100.39 for the session.
Dynatrace stock remains in a steady drawdown, now carrying an 11.2% year-to-date deficit after losing more than 21% in the last month. Shares have pulled back from their Feb. 12, three-year high of $63, though support at the $48 level has so far held firm. So far today, DT has shed 3%,now trading at $47.77.