What Happened?
Shares of data protection software company Commvault (NASDAQ: CVLT) jumped 5.6% in the afternoon session after Truist Securities initiated coverage on the data protection company's stock with a 'Buy' rating and set a price target of $230. The research firm noted Commvault's strong position to benefit from the growing importance of data security, viewing it as a critical part of cybersecurity amid increasing ransomware attacks. The price target suggested significant upside from its previous trading price.
Is now the time to buy Commvault? Access our full analysis report here.
What Is The Market Telling Us
Commvault’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 6.5% after stocks pulled back as a report raised concerns about artificial intelligence demand and profitability.
Oracle shares lost more than 5% following news of its cloud business generating lighter margins than expected. According to internal documents cited in the report, the gross profit margin for this business was only 14%, a figure much lower than what analysts had expected. This suggested that the high costs of running the advanced chip infrastructure were weighing on profitability. Compounding these worries was the ongoing U.S. government shutdown, in its second week, with no clear resolution in sight from Washington. These updates drove investors away from riskier assets and towards safe havens, a trend highlighted by gold futures hitting a record $4,000 per ounce for the first time.
Commvault is up 17.1% since the beginning of the year, and at $178.19 per share, it is trading close to its 52-week high of $195.41 from September 2025. Investors who bought $1,000 worth of Commvault’s shares 5 years ago would now be looking at an investment worth $4,123.
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