Enterprise Software, Cybersecurity Stocks Falter After Two-Month Rally

▤ Summary

A two-month rally in enterprise software and cybersecurity stocks gave way to profit-taking on Monday when shares in Salesforce.com ( CRM ), Workday ( WDAY ), Twilio ( TWLO ), Atlassian ( TEAM ), Splunk ( SPLK ), and a slew of other companies took a hit. Rather than being a precursor to another technology downturn, Mondays sell-off in enterprise software and cybersecurity stocks could simply be profit-taking. Richard Davis, a software analyst at Canaccord Genuity, told IBD that company valuations had rebounded nearly back to all-time highs. Shares in Salesforce dropped 4.6% to 156.96 in midday trading on the stock market today . Shares in Secureworks ( SCWX ), Sailpoint Technology ( SAIL ) and CyberArk Software ( CYBR ) also were down.

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