What Happened?

A number of stocks fell in the afternoon session after a hotter-than-expected wholesale inflation report revived concerns about persistent inflation and tempered hopes for a Federal Reserve interest rate cut. The Producer Price Index (PPI) for July jumped 3.3% from a year earlier, surprising economists who had forecasted a 2.5% rate. This data revived concerns about persistent inflation and forced traders to reconsider the likelihood of a near-term interest rate cut by the Federal Reserve. High-growth technology stocks, which dominate the SaaS landscape, are particularly sensitive to interest rate fluctuations.

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:

• Cloud Monitoring company PagerDuty (NYSE: PD) fell 3.3%. Is now the time to buy PagerDuty? Access our full analysis report here, it’s free.
• Vulnerability Management company Tenable (NASDAQ: TENB) fell 4.6%. Is now the time to buy Tenable? Access our full analysis report here, it’s free.
• Payments Software company Marqeta (NASDAQ: MQ) fell 4.8%. Is now the time to buy Marqeta? Access our full analysis report here, it’s free.
• Hospitality & Restaurant Software company Toast (NYSE: TOST) fell 3.3%. Is now the time to buy Toast? Access our full analysis report here, it’s free.
• Content Delivery company Fastly (NYSE: FSLY) fell 4.1%. Is now the time to buy Fastly? Access our full analysis report here, it’s free.

Zooming In On Marqeta (MQ)

Marqeta’s shares are somewhat volatile and have had 14 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 13 days ago when the stock dropped 3.5% on the news that the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.

Marqeta is up 66.2% since the beginning of the year, but at $6.20 per share, it is still trading 9.2% below its 52-week high of $6.83 from August 2025. Investors who bought $1,000 worth of Marqeta’s shares at the IPO in June 2021 would now be looking at an investment worth $203.12.

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.