What Happened?
Shares of cloud communications provider RingCentral (NYSE: RNG) jumped 36.3% in the morning session after the company reported fourth-quarter earnings that beat expectations and provided an upbeat profit forecast for the full year.
The cloud communications provider posted revenue of $644 million, which was in line with Wall Street estimates. However, its adjusted earnings per share of $1.18 surpassed analyst expectations by 4.1%. The main driver for the stock's surge was the company's optimistic outlook for the upcoming year. Management guided for full-year 2026 adjusted earnings per share of approximately $4.87 at the midpoint, which beat consensus estimates by 2.1%. This stronger-than-expected profit guidance signaled confidence in the company's future performance, driving significant investor enthusiasm.
Is now the time to buy RingCentral? Access our full analysis report here, it’s free.
What Is The Market Telling Us
RingCentral’s shares are very volatile and have had 26 moves greater than 5% over the last year. But moves this big are rare even for RingCentral and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 2.9% on the news that investor fears over artificial intelligence disrupting the software industry sparked a broad sell-off.
The anxiety stemmed from the rapid adoption of new 'agentic AI' tools, which some investors believed could dismantle traditional Software-as-a-Service (SaaS) business models. This 'AI Panic' led to indiscriminate selling across the sector. The market move reflected growing concerns about the downside of the AI boom for established software companies.
RingCentral is up 44.3% since the beginning of the year, and at $39.81 per share, has set a new 52-week high. Investors who bought $1,000 worth of RingCentral’s shares 5 years ago would now be looking at an investment worth $99.80.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.
