PubMatic, Datadog, JFrog, The Trade Desk, and Upstart Stocks Trade Down, What You Need To Know

October 10, 2025 at 15:30 PM EDT

PUBM Cover Image

What Happened?

A number of stocks fell in the afternoon session after President Trump threatened to increase import taxes on Chinese goods, reigniting trade war fears.

The threat was in response to China's move to restrict its exports of rare earth minerals, which are critical to high-tech manufacturing in the U.S. The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-heavy Nasdaq Composite fell 2.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies.

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:

Advertising Software company PubMatic (NASDAQ: PUBM) fell 3.2%. Is now the time to buy PubMatic? Access our full analysis report here, it’s free for active Edge members.
Cloud Monitoring company Datadog (NASDAQ: DDOG) fell 2.8%. Is now the time to buy Datadog? Access our full analysis report here, it’s free for active Edge members.
Developer Operations company JFrog (NASDAQ: FROG) fell 3.5%. Is now the time to buy JFrog? Access our full analysis report here, it’s free for active Edge members.
Advertising Software company The Trade Desk (NASDAQ: TTD) fell 3.3%. Is now the time to buy The Trade Desk? Access our full analysis report here, it’s free for active Edge members.
Lending Software company Upstart (NASDAQ: UPST) fell 3.8%. Is now the time to buy Upstart? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Upstart (UPST)

Upstart’s shares are extremely volatile and have had 72 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 3 days ago when the stock dropped 3.3% on the news that tech stocks pulled back as a report raised concerns about artificial intelligence demand and profitability.

Oracle shares lost more than 5% following news of its cloud business generating lighter margins than expected. According to internal documents cited in the report, the gross profit margin for this business was only 14%, a figure much lower than what analysts had expected. This suggested that the high costs of running the advanced chip infrastructure were weighing on profitability. Compounding these worries was the ongoing U.S. government shutdown, in its second week, with no clear resolution in sight from Washington. These updates drove investors away from riskier assets and towards safe havens, a trend highlighted by gold futures hitting a record $4,000 per ounce for the first time.

Upstart is down 18.5% since the beginning of the year, and at $49.51 per share, it is trading 44.2% below its 52-week high of $88.77 from February 2025. Investors who bought $1,000 worth of Upstart’s shares at the IPO in December 2020 would now be looking at an investment worth $1,681.

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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PubMatic, Datadog, JFrog, The Trade Desk, and Upstart Stocks Trade Down, What You Need To Know

What Happened?

Zooming In On Upstart (UPST)

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