Software and sentiment
- DOX hit multi-year low this week
- Topped headline earnings numbers
- Social sentiment positive despite downturn
Although Amdocs (DOX) released earnings this week, it’s quite possible few traders who weren’t already familiar with the company would have taken much notice—if not for its appearance on Wednesday’s LiveAction scan for stocks with positive social sentiment:
Source: Power E*TRADE. (For illustrative purposes. Not a recommendation.)
There were a few reasons DOX was something of an outlier on this list, which ranks stocks according to how positive their social media “buzz” is on a given day. First, unlike the overwhelming majority of these stocks (and all of those above it), DOX was trading in negative territory on Wednesday.
It’s also a software company—a group that has been under pressure recently amid concerns that GenAI will disrupt traditional software-as-a-service (SaaS) models. Although DOX’s decline on Wednesday was relatively mild (less than -2%), it followed an 8.6% loss on Tuesday. Overall, the selling dropped shares to their lowest level since December 2021, and roughly 34% below the all-time high of $207.18 they hit a little more than three months ago:
Source: Power E*TRADE. (For illustrative purposes. Not a recommendation.)
The chart highlights another facet of this story—DOX released earnings (“E”) after Tuesday’s closing bell, modestly topping its headline earning and revenue numbers, and maintaining its forward guidance.1
Interestingly, the stock’s performance over the past two days mimics the performance around its previous (November 2025) earnings announcement.
In this case, it’s impossible to know the extent to which negative sentiment around software stocks has influenced the recent price action in DOX, which leverages AI in its products and services. Sentiment can be a fickle “indicator,” which is precisely why some traders may take contrarian views of extremely high or low readings.
That said, although the “crowd” isn’t always right, it’s worth noting when it appears to be out of sync with a stock’s price action.
Market Mover Update: On Wednesday, software was actually one of the stronger industries within the S&P 500 tech sector (even though it lost ground). Instead, electronic equipment and semiconductors were the most responsible for dragging the sector lower, including sharp pullbacks in some of the “memory” stocks that have surged this year.
After hitting a new all-time high on Tuesday, Western Digital (WDC) fell more than 7% on Wednesday—but Morgan Stanley & Co. analysts reiterated the stock as a “top pick.”2
Today’s numbers include (all times ET): job cuts (7:30 a.m.), jobless claims (8:30 a.m.).
Today’s earnings include: Affirm (AFRM), Amazon (AMZN), Barrick Mining (B), Bill (BILL), Bristol Myers Squibb (BMY), ConocoPhillips (COP), Estee Lauder (EL), Hershey (HSY), Roblox (RBLX), Reddit (RDDT), Ralph Lauren (RL), Rockwell Automation (ROK), Atlassian (TEAM), Tapestry (TPR), XPO (XPO).
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1 StreetInsider.com. Amdocs (DOX) Tops Q4 EPS by 6c. 2/3/26.
2 MorganStanley.com. 2026 Innovation Day—Substantiating Why WDC Is Our Top Pick. 2/4/26.