The stock market is so fixated on the AI hardware sector that strong results in other sectors failed to give it a lift. These are today’s picks.
HubSpot (HUBS) fell by 19% on May 9 after posting Q1 2026 results. Revenue grew by 23.4% Y/Y to $881 million. Furthermore, the GAAP operating income of $27.9 million is up from a $27.5 million loss last year. HubSpot raised its Q2 forecast. It expects total revenue growth of 18% Y/Y.
Synaptics (SYNA) jumped to a new high after posting quarterly results. In the third quarter, revenue grew by 10.4% Y/Y to $294.2 million. IoT product sales jumped by 31% Y/Y. For Q4, it expects $302.46 million in revenue.
Cloudflare (NET) wiped out its April 29 – May 7 rally last week. In the Q1 report, the firm said that it would cut 20% of its workforce. The company said that AI usage grew internally by 600%. The “massive” productivity gains justified cutting the middle layer and support roles.
Toast (TOST), an insurance company, slumped after posting results. Investors are dumping insurance companies regardless of their strong results. In Q1, revenue increased by 21.6% Y/Y to $1.63 billion. Its focus to shift from growth at any cost to growth and achieving profits is working.
Markets are worried that cost pressures in the near-term will hurt earnings. Cautious investors might consider Chubb (CB), Allstate (ALL), or Prudential (PRU) instead.
