Rapid7 Shares Plunge 28% Following Downgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Should l Buy RPD?
Source: Yahoo Finance
- Significant Stock Drop: Rapid7 shares fell nearly 28% in recent trading, indicating market concerns about the company's future performance, particularly following a downgrade by Canaccord Genuity that undermined investor confidence.
- Impact of Downgrade: The downgrade by Canaccord Genuity may lead investors to reassess their portfolios, potentially affecting the company's market value and financing capabilities, especially in the current economic climate.
- Severe Market Reaction: The sharp decline in Rapid7's stock price has drawn widespread attention from the market, with analysts and investors expressing concerns about the company's future prospects, which could impact its competitive position in the industry.
- Investor Confidence Shaken: This stock drop may shake investor confidence in Rapid7, potentially affecting future capital inflows and business expansion plans, particularly against the backdrop of increasing competition in the tech sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy RPD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on RPD
Wall Street analysts forecast RPD stock price to rise
20 Analyst Rating
5 Buy
14 Hold
1 Sell
Hold
Current: 6.390
Low
21.00
Averages
30.19
High
40.00
Current: 6.390
Low
21.00
Averages
30.19
High
40.00
About RPD
Rapid7, Inc. is a global cybersecurity software and services provider. It has the expertise of the security operations center (SOC) across information security, cloud operations, development, and information technology (IT) teams, enabling them to understand the attacker and leverage that information to take control of their fragmented attack surface. Rapid7 Managed Threat Complete (MTC) is its flagship offering and unifies the leading detection and response of Rapid7 Managed Detection and Response (MDR) and the exposure management of Rapid7 Managed Vulnerability Management (MVM) to manage customer’s imminent risks, pinpoint and eliminate threats as early as possible and build resiliency for their future. Its Rapid7 Threat Complete unifies Rapid7 InsightIDR (InsightIDR) and Rapid7 InsightVM (InsightVM) to provide complete risk and threat coverage in a single offering. Its security solutions help more than 11,000 global customers unite cloud risk management and threat detection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RingCentral and Five9 Earnings Boost Stock Prices
- Earnings Beat: Both RingCentral and Five9 reported earnings that exceeded Wall Street estimates, with RingCentral's stock surging 34% and Five9's rising 14%, reflecting strong market confidence in their future growth.
- Surge in AI Demand: Both companies indicated that the accelerating adoption of artificial intelligence has boosted demand for customer service solutions, with RingCentral's annual recurring revenue from AI tool users doubling year-over-year to nearly 10%.
- Five9 AI Business Growth: Five9's enterprise AI bookings more than doubled year-over-year, leading to an annual recurring revenue of $100 million, showcasing its strong performance and market demand in the AI sector.
- Market Rebound Signal: Following a significant sell-off in the software sector due to AI threats, the robust performance of these two companies provides a rebound signal for investors, potentially indicating an improvement in market sentiment.
See More
RingCentral and Five9 Surge on Strong Q4 Results
- Earnings Beat: Both RingCentral and Five9 reported fourth-quarter results that exceeded Wall Street expectations, with RingCentral's stock surging 34% and Five9 rising about 14%, reflecting strong performance in the customer service software sector.
- AI-Driven Growth: Both companies indicated that accelerating AI adoption has boosted demand, with RingCentral reporting that annual recurring revenue from customers using AI tools doubled year-over-year to nearly 10%.
- Market Panic Eased: Despite a recent massive sell-off in the software sector due to fears surrounding AI tools, the strong earnings from these two firms alleviated investor concerns, indicating that AI is not undermining their business models.
- Five9 AI Booking Surge: Five9 reported that its enterprise AI bookings more than doubled year-over-year, achieving $100 million in annual recurring revenue, showcasing its competitive edge and market potential in customer service solutions.
See More
US Stock Market Close and Employment Data Analysis
- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
See More
Rapid7 Shares Plunge 28% Following Downgrade
- Significant Stock Drop: Rapid7 shares fell nearly 28% in recent trading, indicating market concerns about the company's future performance, particularly following a downgrade by Canaccord Genuity that undermined investor confidence.
- Impact of Downgrade: The downgrade by Canaccord Genuity may lead investors to reassess their portfolios, potentially affecting the company's market value and financing capabilities, especially in the current economic climate.
- Severe Market Reaction: The sharp decline in Rapid7's stock price has drawn widespread attention from the market, with analysts and investors expressing concerns about the company's future prospects, which could impact its competitive position in the industry.
- Investor Confidence Shaken: This stock drop may shake investor confidence in Rapid7, potentially affecting future capital inflows and business expansion plans, particularly against the backdrop of increasing competition in the tech sector.
See More
US Stocks Mixed as Software Sector Declines
- Strong Employment Data: US nonfarm payrolls rose by 130,000 in January, exceeding expectations of 65,000, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, indicating labor market stability that could influence Fed policy decisions.
- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
- Corporate Earnings Performance: So far, 78% of the 319 S&P 500 companies have reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating corporate resilience that may support the stock market.
- Market Volatility Overview: The Dow Jones Industrial Average fell by 0.19%, the S&P 500 dipped 0.02%, while the Nasdaq 100 rose by 0.10%, indicating a mixed market performance amid declines in software stocks.
See More
U.S. Economy Adds Jobs Exceeding Expectations
- Strong Job Growth: According to the Bureau of Labor Statistics, the U.S. added 130,000 jobs in January, significantly surpassing economists' expectations of 70,000 and marking a substantial increase from December's revised 48,000, indicating robust economic recovery momentum.
- Unemployment Rate Decline: The unemployment rate unexpectedly fell to 4.3% in January from 4.4% in December, below market expectations of 4.4%, suggesting improvements in the labor market that could further boost consumption and economic growth.
- Accelerated Wage Growth: Average hourly earnings for private nonfarm employees rose by 0.4% to $37.17, a significant acceleration from December's 0.1% increase and exceeding expectations of 0.3%, which will enhance consumer purchasing power.
- Energy Stocks Outperform: Energy stocks rose by 2.4% on Wednesday, reflecting optimistic market expectations for energy demand, while oil prices increased by 1.3% to $64.80, potentially boosting profitability for related companies.
See More
RingCentral and Five9 Earnings Boost Stock Prices
- Earnings Beat: Both RingCentral and Five9 reported earnings that exceeded Wall Street estimates, with RingCentral's stock surging 34% and Five9's rising 14%, reflecting strong market confidence in their future growth.
- Surge in AI Demand: Both companies indicated that the accelerating adoption of artificial intelligence has boosted demand for customer service solutions, with RingCentral's annual recurring revenue from AI tool users doubling year-over-year to nearly 10%.
- Five9 AI Business Growth: Five9's enterprise AI bookings more than doubled year-over-year, leading to an annual recurring revenue of $100 million, showcasing its strong performance and market demand in the AI sector.
- Market Rebound Signal: Following a significant sell-off in the software sector due to AI threats, the robust performance of these two companies provides a rebound signal for investors, potentially indicating an improvement in market sentiment.
See More
RingCentral and Five9 Surge on Strong Q4 Results
- Earnings Beat: Both RingCentral and Five9 reported fourth-quarter results that exceeded Wall Street expectations, with RingCentral's stock surging 34% and Five9 rising about 14%, reflecting strong performance in the customer service software sector.
- AI-Driven Growth: Both companies indicated that accelerating AI adoption has boosted demand, with RingCentral reporting that annual recurring revenue from customers using AI tools doubled year-over-year to nearly 10%.
- Market Panic Eased: Despite a recent massive sell-off in the software sector due to fears surrounding AI tools, the strong earnings from these two firms alleviated investor concerns, indicating that AI is not undermining their business models.
- Five9 AI Booking Surge: Five9 reported that its enterprise AI bookings more than doubled year-over-year, achieving $100 million in annual recurring revenue, showcasing its competitive edge and market potential in customer service solutions.
See More
US Stock Market Close and Employment Data Analysis
- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
See More
Rapid7 Shares Plunge 28% Following Downgrade
- Significant Stock Drop: Rapid7 shares fell nearly 28% in recent trading, indicating market concerns about the company's future performance, particularly following a downgrade by Canaccord Genuity that undermined investor confidence.
- Impact of Downgrade: The downgrade by Canaccord Genuity may lead investors to reassess their portfolios, potentially affecting the company's market value and financing capabilities, especially in the current economic climate.
- Severe Market Reaction: The sharp decline in Rapid7's stock price has drawn widespread attention from the market, with analysts and investors expressing concerns about the company's future prospects, which could impact its competitive position in the industry.
- Investor Confidence Shaken: This stock drop may shake investor confidence in Rapid7, potentially affecting future capital inflows and business expansion plans, particularly against the backdrop of increasing competition in the tech sector.
See More
US Stocks Mixed as Software Sector Declines
- Strong Employment Data: US nonfarm payrolls rose by 130,000 in January, exceeding expectations of 65,000, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, indicating labor market stability that could influence Fed policy decisions.
- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
- Corporate Earnings Performance: So far, 78% of the 319 S&P 500 companies have reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating corporate resilience that may support the stock market.
- Market Volatility Overview: The Dow Jones Industrial Average fell by 0.19%, the S&P 500 dipped 0.02%, while the Nasdaq 100 rose by 0.10%, indicating a mixed market performance amid declines in software stocks.
See More
U.S. Economy Adds Jobs Exceeding Expectations
- Strong Job Growth: According to the Bureau of Labor Statistics, the U.S. added 130,000 jobs in January, significantly surpassing economists' expectations of 70,000 and marking a substantial increase from December's revised 48,000, indicating robust economic recovery momentum.
- Unemployment Rate Decline: The unemployment rate unexpectedly fell to 4.3% in January from 4.4% in December, below market expectations of 4.4%, suggesting improvements in the labor market that could further boost consumption and economic growth.
- Accelerated Wage Growth: Average hourly earnings for private nonfarm employees rose by 0.4% to $37.17, a significant acceleration from December's 0.1% increase and exceeding expectations of 0.3%, which will enhance consumer purchasing power.
- Energy Stocks Outperform: Energy stocks rose by 2.4% on Wednesday, reflecting optimistic market expectations for energy demand, while oil prices increased by 1.3% to $64.80, potentially boosting profitability for related companies.
See More
