A volatile Thursday rattled Wall Street, with technology and software stocks sliding across the board after a cautious margin outlook from Cisco Systems Inc. (NASDAQ:CSCO) reignited concerns about profit durability in the AI trade.
Despite topping earnings and revenue expectations, Cisco shares tumbled more than 11% — their worst single-day drop since May 2022 — as investors fixated on softer forward guidance.
The iShares Tech-Expanded Software Sector ETF (NYSE:IGV), widely viewed as a barometer for AI-disruption risk, sank 3.7%, revisiting lows touched just last week.
AppLovin Corp. (NASDAQ:APP) plunged 18% even after beating estimates, with underwhelming guidance once again overshadowing headline results. The stock is now down 45% year to date, ranking among the weakest performers in the IGV basket.
Robinhood Markets Inc. (NASDAQ:HOOD) — one of the emblematic winners of the AI-fueled rally — slid 9%, on pace for its worst two-day selloff since the tariff shock triggered by President Trump in April 2025.
Pressure also mounted in hardware. A deepening global memory and storage crunch rippled through the sector …