What Happened?
Shares of construction management software maker Procore (NYSE: PCOR) jumped 3% in the morning session after a series of positive analyst actions and a broader rally among software stocks. The positive sentiment followed several analyst updates. Baird designated the company a bullish 'Fresh Pick' and maintained its Outperform rating with an $88 price target. Additionally, DA Davidson increased its price target on the stock to $70. The move also coincided with a sector-wide lift for Software as a Service (SaaS) companies. A weaker-than-expected U.S. jobs report increased investor expectations for a Federal Reserve interest rate cut, which generally boosted valuations for growth-oriented technology stocks.
After the initial pop the shares cooled down to $63.02, up 1.6% from previous close.
Is now the time to buy Procore? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Procore’s shares are somewhat volatile and have had 13 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 4 days ago when the stock dropped 3.1% after Confluent's disappointing quarterly results signaled growing headwinds in the space. The data-streaming company missed revenue forecasts, citing significant challenges including customers optimizing their cloud spending and a slowdown in new projects. The situation was worsened by news that a large AI-native client is shifting to self-management, which is expected to impact future growth. Consequently, Stifel downgraded Confluent's stock from "Buy" to "Hold." The negative sentiment appeared to spill over to peers like cloud monitoring firm Datadog, which also saw its shares decline.
Procore is down 16.2% since the beginning of the year, and at $63.02 per share, it is trading 28.7% below its 52-week high of $88.33 from February 2025. Investors who bought $1,000 worth of Procore’s shares at the IPO in May 2021 would now be looking at an investment worth $716.16.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
