By By: StockStory
Publication Date: 2026-05-22 19:31:00
What happened?
Several stocks rose in the afternoon session after Treasury yields cooled and risk rotation boosted AI-linked growth names, helping the SaaS sector recover from the previous day’s Intuit-driven sell-off.
SaaS companies (Salesforce, ServiceNow, Workday, Snowflake, MongoDB, Datadog) are the classic example of long-lived cash flows: they earn revenue through multi-year contracts with high renewal rates, making them extremely sensitive to the discount rate.
A ten basis point drop in the 10-year yield can lift SaaS valuations by 5% to 10% alone, because these stocks trade on forward EV/revenue multiples that move directly with rates. The combination of cooling yields and peace progress in Iran also calmed fears that the commoditization of AI (yesterday’s Intuit thesis) is universal across SaaS. Investors appeared to be scanning the market for SaaS companies whose moats are extended by AI, a healthier setup than the previous day’s overall sell-off.
The action…
