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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Is JFrog (FROG) Stock Rocketing Higher Today

FROG Cover Image

What Happened?

Shares of software development tools maker JFrog (NASDAQ: FROG) jumped 10.2% in the afternoon session after the company reported a "beat and raise quarter." First quarter 2025 results included convincing beats on revenue and operating income. Sales rose 22%, led by cloud revenue, which grew 42%. Big clients continued to spend more, with $1 million+ customers up 35% from last year. In addition, full-year sales, adjusted operating income, and EPS guidance topped analysts' expectations and were slightly lifted from the previous outlook. Overall, this was an impressive quarter.

Is now the time to buy JFrog? Access our full analysis report here, it’s free.

What The Market Is Telling Us

JFrog’s shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for JFrog and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock dropped 31.9% on the news that the company reported weak second quarter 2024 results. Its full-year revenue guidance was lowered by 1% and came in below expectations. Also, its revenue guidance for the next quarter missed Wall Street's estimates. Profitability was also expected to be pressured, with adjusted operating income for the next quarter and full year below consensus. 

Management called out a challenging macro, which led to "projects being delayed, stricter budget environment, rigid procurement process." Cloud migrations were also slower during the quarter, and this delayed the anticipated spending uplift from on-prem to Cloud migrations. Overall, this was a weak quarter for JFrog, with the below-consensus outlook weighing heavily on the stock.

JFrog is up 27.5% since the beginning of the year, and at $39.14 per share, it is trading close to its 52-week high of $42.03 from February 2025. Investors who bought $1,000 worth of JFrog’s shares at the IPO in September 2020 would now be looking at an investment worth $604.13.

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.

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