What Happened?

A number of stocks fell in the afternoon session after the White House announced plans to raise global tariffs to 15%. The major stock indexes, including the S&P 500 and Nasdaq, also sank amid the uncertainty. The downturn came after President Trump announced the tariff increase in a post on Truth Social, stating the new rate would be effective immediately on countries that had been, in his words, "'ripping' the U.S. off for decades." The move sparked concern among trade partners, with Europe warning that such tariffs could put U.S. trade deals at risk. The market-wide slide reflected investor worries about the potential impact of these new global trade policies Additionally, investor concerns about disruption in the software industry from advancements in artificial intelligence (AI) continued to cause a sector-wide sell-off. The market started the week with a more cautious tone, reflecting this unease. The current wave of AI development was seen as having similar traits to previous tech cycles, marked by genuine innovation but also by exuberant expectations and sharp market reactions to new developments.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Endpoint Security company Varonis Systems (NASDAQ: VRNS) fell 10.5%. Is now the time to buy Varonis Systems? Access our full analysis report here, it’s free.
• Data Analytics company Domo (NASDAQ: DOMO) fell 9.3%. Is now the time to buy Domo? Access our full analysis report here, it’s free.
• Document Management company DocuSign (NASDAQ: DOCU) fell 6.7%. Is now the time to buy DocuSign? Access our full analysis report here, it’s free.
• Data Storage company Snowflake (NYSE: SNOW) fell 9.1%. Is now the time to buy Snowflake? Access our full analysis report here, it’s free.
• Project Management Software company Atlassian (NASDAQ: TEAM) fell 9.2%. Is now the time to buy Atlassian? Access our full analysis report here, it’s free.

Zooming In On Varonis Systems (VRNS)

Varonis Systems’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Varonis Systems 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 6.3% on the news that Anthropic unveiled Claude Code Security, a tool designed to autonomously scan codebases for vulnerabilities and suggest targeted software patches. Historically, cybersecurity value was tied to human-intensive monitoring and proprietary software moats. However, Claude Code's ability to autonomously write, test, and refactor production-grade code, as well as its documented role in the first large-scale, AI-orchestrated cyberattack shifted market sentiment. The market's reaction was further driven by fear that AI is shifting from a supportive "copilot" to a direct substitute for high-margin, specialized security software. As a result, investors are increasingly skeptical of the long-term pricing power of legacy firms if "good enough" security remediation can be embedded directly into the development workflow by an AI agent.

Varonis Systems is down 34.3% since the beginning of the year, and at $21.07 per share, it is trading 66.7% below its 52-week high of $63.31 from October 2025. Investors who bought $1,000 worth of Varonis Systems’s shares 5 years ago would now be looking at an investment worth $314.52.

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