Software Giants Face Significant Stock Declines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Source: CNBC
- Software Stock Performance: This week, software giants like Intuit and Palantir were identified as oversold stocks, with Palantir's shares dropping over 13% and an RSI of 26.3, indicating potential for a short-term bounce; however, analysts believe its valuation is unsustainable with a price target of $50, implying a 67% downside.
- Market Sentiment Deterioration: Mixed earnings results from the 'Magnificent Seven' have dampened investor confidence in the bull market, leading to declines in technology stocks that weighed on both the S&P 500 and Nasdaq, which closed in the red this week.
- ServiceNow's Earnings Fail to Boost: Despite ServiceNow beating Wall Street's fourth-quarter earnings expectations and providing optimistic guidance on Wednesday, its stock still fell over 12%, reflecting market concerns about the potential disruption of software business models by artificial intelligence.
- Strong Memory Stock Performance: In contrast to software stocks, memory stocks like Sandisk and Lam Research surged 22% and 7% this week, respectively, driven by rising memory prices linked to data center compute demand, with Sandisk reporting a 64% growth in its data center business.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy STX?" 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 STX
Wall Street analysts forecast STX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for STX is 310.39 USD with a low forecast of 150.00 USD and a high forecast of 465.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
14 Buy
3 Hold
1 Sell
Moderate Buy
Current: 405.450
Low
150.00
Averages
310.39
High
465.00
Current: 405.450
Low
150.00
Averages
310.39
High
465.00
About STX
Seagate Technology Holdings plc provides mass-data storage infrastructure solution. The Company’s principal products are hard disk drives, commonly referred to as disk drives, hard drives (HDDs). In addition to HDDs, the Company produces a range of data storage products, including solid state drives (SSDs), solid state hybrid drives, storage subsystems, as well as a scalable edge-to-cloud mass data platform. Its HDD products are designed for mass capacity storage and legacy markets. Mass capacity storage involves use cases, such as hyperscale data centers and public clouds, as well as emerging use cases. The Company’s HDD and SSD product portfolio includes Serial Advanced Technology Attachment, Serial Attached SCSI and Non-Volatile Memory Express based designs to support a variety of mass capacity and legacy applications. Its systems portfolio includes storage subsystems for enterprises, cloud service providers, scale-out storage servers and original equipment manufacturers.
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.
US Stocks Surge, Dow Hits All-Time High
- Dow Hits Record High: The Dow Jones Industrial Average surged 2.47% to reach an all-time high, reflecting market optimism about economic recovery, particularly amid strong rebounds in tech and chipmaker stocks.
- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
- Bitcoin Rebounds: Bitcoin surged over 11% from a 1.25-year low, lifting cryptocurrency-exposed stocks and signaling renewed investor interest and confidence in crypto assets.
- Strong Corporate Earnings: Over 79% of S&P 500 companies exceeded earnings expectations, with S&P earnings growth projected at 8.4% for Q4, providing robust support for the market and indicating ongoing improvement in corporate profitability.
See More
US Stocks Close Mixed: Nasdaq Hits Seven-Week Low
- Chipmaker Sell-off: Advanced Micro Devices (AMD) plunged over 17% after analysts issued a weak Q1 sales forecast, raising concerns about AI demand and pressuring the broader tech sector, particularly high-flying stocks.
- Super Micro Computer Surge: Super Micro Computer's stock rose more than 13% after forecasting Q3 net sales of at least $12.3 billion, significantly above the consensus estimate of $10.25 billion, indicating strong growth potential in a competitive market.
- Mixed Economic Data: The January ADP employment change rose by 22,000, falling short of the expected 45,000, while the ISM services index remained unchanged at 53.8, exceeding expectations, reflecting the complexities of economic recovery that may influence future monetary policy.
- Improved Market Sentiment: Market sentiment improved following President Trump's signing of a government funding deal, although the agreement only funds the Department of Homeland Security through February 13, highlighting ongoing uncertainties in government operations.
See More
Western Digital's Innovation Day Sparks Market Interest
- Innovation-Driven Growth: Western Digital's (WDC) Innovation Day showcased advancements in its hard disk drive ecosystem, with analysts noting that future innovations will drive down cost per TB and enhance I/O performance, solidifying HDDs' dominance in hyperscale data storage.
- Revenue Growth Outlook: BNP Paribas analysts predict that Western Digital's order visibility supports a long-term revenue growth target of over 20% CAGR post-CY25, with expectations for EPS exceeding $20, indicating strong long-term growth potential.
- Competitive Impact: The event not only boosted market confidence in Western Digital but also positively impacted competitor Seagate Technology (STX), with analysts raising Seagate's price target to $530, reflecting optimism about its 2026 EPS.
- Profitability Enhancement: Western Digital aims for over 50% gross margins, over 40% operating margins, and over 30% free cash flow margins, all exceeding previous expectations, demonstrating its competitive edge and enhanced profitability in the market.
See More
Mixed US Stock Market with Pressure on Chip Stocks
- Market Divergence: The S&P 500 Index fell by 0.11% while the Dow Jones Industrial Average rose by 0.69%, and the Nasdaq 100 dropped by 1.05%, indicating a divergence in market sentiment, particularly with underperforming tech stocks potentially affecting investor confidence.
- Earnings Impact: Super Micro Computer forecasts Q3 net sales significantly above expectations, leading to a stock price increase of over 13%, while Advanced Micro Devices saw its stock drop more than 15% due to weak Q1 sales forecasts, reflecting a cautious market outlook on tech stocks.
- Mixed Economic Data: The January ADP employment change rose by 22,000, below the expected 45,000, while the ISM services index remained steady at 53.8, stronger than the anticipated decline to 53.5, highlighting the complexities of economic recovery that could influence future monetary policy.
- Mortgage Applications Decline: MBA mortgage applications fell by 8.9% for the week ending January 30, with the purchase mortgage sub-index down 14.4%, indicating weakened housing demand that may negatively impact the real estate market.
See More
Mixed Performance in US Stocks as Tech Sector Shows Divergence
- Divergence in Tech Stocks: Despite strong earnings from Palantir Technologies and Teradyne boosting tech stocks, Palantir's shares rose over 5% after forecasting 2026 revenue significantly above expectations at $7.18 to $7.20 billion, well above the consensus of $6.27 billion.
- Precious Metals Rebound: Gold prices increased by more than 6% and silver surged over 13%, leading mining stocks like Freeport McMoRan and Hecla Mining to rise by more than 5% and 4% respectively, indicating a recovery in market demand for precious metals.
- PayPal's Stock Plunge: PayPal Holdings saw its stock drop over 18%, significantly weighing on the Nasdaq 100, as its Q4 net revenue of $8.68 billion fell short of the $8.79 billion consensus, coupled with a CEO change that may impact investor confidence.
- Economic Data Impacting Market Sentiment: While signs of an improving US economic outlook coexist with risks from concentrated hiring in a few sectors and inflation above the Fed's target, the market's expectations for future rate hikes have diminished, with the 10-year T-note yield rising to 4.3%, heightening investor unease.
See More
US Stocks Close Higher on Strong Manufacturing Data
- Manufacturing Index Surge: The US January ISM manufacturing index rose by 4.7 to 52.6, surpassing expectations of 48.5, marking the strongest expansion in over 3.25 years, which bolstered market optimism and contributed to stock gains.
- Chip Stocks Rally: Chipmakers and AI infrastructure stocks performed strongly on Monday, with Sandisk (SNDK) surging over 15% to lead the S&P 500 gainers, reflecting strong demand for tech stocks and a recovery in investor confidence.
- Energy Stocks Under Pressure: Energy producers faced headwinds as WTI crude oil prices fell more than 4%, with Diamondback Energy (FANG) and Occidental Petroleum (OXY) both declining over 3%, indicating growing concerns in the energy sector.
- Cryptocurrency Market Retreats: Bitcoin plummeted over 7% to a 9.75-month low, leading to widespread declines in cryptocurrency-related stocks, with Galaxy Digital Holdings (GLXY) and Strategy (MSTR) both dropping over 6%, reflecting weakened investor confidence in the crypto market.
See More
US Stocks Surge, Dow Hits All-Time High
- Dow Hits Record High: The Dow Jones Industrial Average surged 2.47% to reach an all-time high, reflecting market optimism about economic recovery, particularly amid strong rebounds in tech and chipmaker stocks.
- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
- Bitcoin Rebounds: Bitcoin surged over 11% from a 1.25-year low, lifting cryptocurrency-exposed stocks and signaling renewed investor interest and confidence in crypto assets.
- Strong Corporate Earnings: Over 79% of S&P 500 companies exceeded earnings expectations, with S&P earnings growth projected at 8.4% for Q4, providing robust support for the market and indicating ongoing improvement in corporate profitability.
See More
US Stocks Close Mixed: Nasdaq Hits Seven-Week Low
- Chipmaker Sell-off: Advanced Micro Devices (AMD) plunged over 17% after analysts issued a weak Q1 sales forecast, raising concerns about AI demand and pressuring the broader tech sector, particularly high-flying stocks.
- Super Micro Computer Surge: Super Micro Computer's stock rose more than 13% after forecasting Q3 net sales of at least $12.3 billion, significantly above the consensus estimate of $10.25 billion, indicating strong growth potential in a competitive market.
- Mixed Economic Data: The January ADP employment change rose by 22,000, falling short of the expected 45,000, while the ISM services index remained unchanged at 53.8, exceeding expectations, reflecting the complexities of economic recovery that may influence future monetary policy.
- Improved Market Sentiment: Market sentiment improved following President Trump's signing of a government funding deal, although the agreement only funds the Department of Homeland Security through February 13, highlighting ongoing uncertainties in government operations.
See More
Western Digital's Innovation Day Sparks Market Interest
- Innovation-Driven Growth: Western Digital's (WDC) Innovation Day showcased advancements in its hard disk drive ecosystem, with analysts noting that future innovations will drive down cost per TB and enhance I/O performance, solidifying HDDs' dominance in hyperscale data storage.
- Revenue Growth Outlook: BNP Paribas analysts predict that Western Digital's order visibility supports a long-term revenue growth target of over 20% CAGR post-CY25, with expectations for EPS exceeding $20, indicating strong long-term growth potential.
- Competitive Impact: The event not only boosted market confidence in Western Digital but also positively impacted competitor Seagate Technology (STX), with analysts raising Seagate's price target to $530, reflecting optimism about its 2026 EPS.
- Profitability Enhancement: Western Digital aims for over 50% gross margins, over 40% operating margins, and over 30% free cash flow margins, all exceeding previous expectations, demonstrating its competitive edge and enhanced profitability in the market.
See More
Mixed US Stock Market with Pressure on Chip Stocks
- Market Divergence: The S&P 500 Index fell by 0.11% while the Dow Jones Industrial Average rose by 0.69%, and the Nasdaq 100 dropped by 1.05%, indicating a divergence in market sentiment, particularly with underperforming tech stocks potentially affecting investor confidence.
- Earnings Impact: Super Micro Computer forecasts Q3 net sales significantly above expectations, leading to a stock price increase of over 13%, while Advanced Micro Devices saw its stock drop more than 15% due to weak Q1 sales forecasts, reflecting a cautious market outlook on tech stocks.
- Mixed Economic Data: The January ADP employment change rose by 22,000, below the expected 45,000, while the ISM services index remained steady at 53.8, stronger than the anticipated decline to 53.5, highlighting the complexities of economic recovery that could influence future monetary policy.
- Mortgage Applications Decline: MBA mortgage applications fell by 8.9% for the week ending January 30, with the purchase mortgage sub-index down 14.4%, indicating weakened housing demand that may negatively impact the real estate market.
See More
Mixed Performance in US Stocks as Tech Sector Shows Divergence
- Divergence in Tech Stocks: Despite strong earnings from Palantir Technologies and Teradyne boosting tech stocks, Palantir's shares rose over 5% after forecasting 2026 revenue significantly above expectations at $7.18 to $7.20 billion, well above the consensus of $6.27 billion.
- Precious Metals Rebound: Gold prices increased by more than 6% and silver surged over 13%, leading mining stocks like Freeport McMoRan and Hecla Mining to rise by more than 5% and 4% respectively, indicating a recovery in market demand for precious metals.
- PayPal's Stock Plunge: PayPal Holdings saw its stock drop over 18%, significantly weighing on the Nasdaq 100, as its Q4 net revenue of $8.68 billion fell short of the $8.79 billion consensus, coupled with a CEO change that may impact investor confidence.
- Economic Data Impacting Market Sentiment: While signs of an improving US economic outlook coexist with risks from concentrated hiring in a few sectors and inflation above the Fed's target, the market's expectations for future rate hikes have diminished, with the 10-year T-note yield rising to 4.3%, heightening investor unease.
See More
US Stocks Close Higher on Strong Manufacturing Data
- Manufacturing Index Surge: The US January ISM manufacturing index rose by 4.7 to 52.6, surpassing expectations of 48.5, marking the strongest expansion in over 3.25 years, which bolstered market optimism and contributed to stock gains.
- Chip Stocks Rally: Chipmakers and AI infrastructure stocks performed strongly on Monday, with Sandisk (SNDK) surging over 15% to lead the S&P 500 gainers, reflecting strong demand for tech stocks and a recovery in investor confidence.
- Energy Stocks Under Pressure: Energy producers faced headwinds as WTI crude oil prices fell more than 4%, with Diamondback Energy (FANG) and Occidental Petroleum (OXY) both declining over 3%, indicating growing concerns in the energy sector.
- Cryptocurrency Market Retreats: Bitcoin plummeted over 7% to a 9.75-month low, leading to widespread declines in cryptocurrency-related stocks, with Galaxy Digital Holdings (GLXY) and Strategy (MSTR) both dropping over 6%, reflecting weakened investor confidence in the crypto market.
See More
