{"id":69585,"date":"2025-08-14T17:57:17","date_gmt":"2025-08-14T17:57:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/69585\/"},"modified":"2025-08-14T17:57:17","modified_gmt":"2025-08-14T17:57:17","slug":"why-nice-stock-sank-today","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/69585\/","title":{"rendered":"Why Nice Stock Sank Today"},"content":{"rendered":"<p>Key Points<\/p>\n<p>Nice is a leader in enterprise software &#8212; specifically in the contact-center-as-a-service industry.<\/p>\n<p>The company&#8217;s second-quarter earnings were strong, but the market did not like management&#8217;s conservative guidance.<\/p>\n<p>Guidance aside, Nice&#8217;s AI-related sales continued booming, and its future looks bright.<\/p>\n<p>Shares of leading enterprise software provider Nice(NASDAQ: NICE) had dropped 7% as of 11 a.m. ET on Thursday, according to data provided by <a aria-label=\"S&amp;P Global Market Intelligence - open in a new tab\" data-uw-rm-ext-link=\"\" href=\"http:\/\/marketintelligence.spglobal.com\/\" target=\"_blank\" rel=\"noopener nofollow\">S&amp;P Global Market Intelligence<\/a>. Nice reported second-quarter earnings this morning and saw sales and adjusted earnings per share (EPS) rise 9% and 14%, respectively.<\/p>\n<p>However, management&#8217;s conservative guidance for just 5% sales growth and 10% EPS growth left the market hoping for more. Despite this initial reaction, there was a lot to like about Nice&#8217;s quarter if we dig a little deeper into the figures.<\/p>\n<p>Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=0273d17d-1b6d-4fe2-ba65-9fbac7518ef0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001096%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dtop_incontent_pitch_feed_partner%26ftm_pit%3D17547&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" rel=\"noopener nofollow\" target=\"_blank\">Continue \u00bb<\/a><\/p>\n<p>Nice grew where it matters: AI<\/p>\n<p>Perhaps the most essential item from the second-quarter report was that its <a href=\"https:\/\/www.fool.com\/terms\/a\/artificial-intelligence\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" target=\"_blank\" rel=\"noopener nofollow\">artificial intelligence (AI)<\/a> and self-service solutions grew sales by 42% &#8212; <a href=\"https:\/\/www.fool.com\/investing\/2025\/07\/28\/why-nice-stock-popped-today\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" target=\"_blank\" rel=\"noopener nofollow\">up from 39% last quarter<\/a>.<\/p>\n<p><a href=\"https:\/\/www.fool.com\/investing\/2025\/06\/03\/once-in-a-decade-opportunity-1-super-growth-stock\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" target=\"_blank\" rel=\"noopener nofollow\">These AI-related sales are crucial to Nice&#8217;s future<\/a> because growth in this department will show that the company is an AI innovator and not a disruptee.<\/p>\n<p><img decoding=\"async\" fetchpriority=\"high\" alt=\"An \" ai=\"\" built=\"\" of=\"\" little=\"\" neon-colored=\"\" blocks=\"\" sits=\"\" on=\"\" an=\"\" electronic=\"\" black-and-blue=\"\" background.=\"\" src=\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/788a5d8017461d1193a9362d0b0e33c1\/%3Furl%3Dhttps%253a%252f%252fg.foolcdn.com%252feditorial%252fimages%252f829371%252fgettyimages-2078917109.jpg%26amp%3Bw%3D700\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>Leading this AI growth charge was a sixfold increase in bookings for its Copilot solution, which offers real-time support, insights, suggestions, monitoring, and alerts to customer experience (CX) agents and supervisors.<\/p>\n<p>Nice already counts 85 of the <a href=\"https:\/\/www.fool.com\/terms\/f\/fortune-100\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" target=\"_blank\" rel=\"noopener nofollow\">Fortune 100<\/a> as customers, and it seems that they are quickly adding the company&#8217;s AI to their CX operations.<\/p>\n<p>With the company recently acquiring conversational and agentic AI leader Cognigy for $955 million, these AI-related sales should remain strong for years to come.<\/p>\n<p>Ultimately, Nice leads the contact-center-as-a-service industry &#8212; both qualitatively (based on leadership rankings from Forrester and Gartner) and in terms of market share.<\/p>\n<p>However, its competition with Amazon Web Services &#8212; which is simultaneously its biggest partner and competitor &#8212; will need to be monitored by investors.<\/p>\n<p>Trading at a mere 12 <a href=\"https:\/\/www.fool.com\/terms\/p\/price-to-free-cash-flow\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" target=\"_blank\" rel=\"noopener nofollow\">times free cash flow<\/a> (even accounting for <a href=\"https:\/\/www.fool.com\/terms\/s\/stock-based-compensation\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" target=\"_blank\" title=\"https:\/\/www.fool.com\/terms\/s\/stock-based-compensation\/ Shift+Click to open\" rel=\"noopener nofollow\">stock-based compensation<\/a>), <a href=\"https:\/\/www.fool.com\/investing\/2025\/06\/03\/once-in-a-decade-opportunity-1-super-growth-stock\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" target=\"_blank\" rel=\"noopener nofollow\">Nice remains a promising opportunity in my eyes<\/a>.<\/p>\n<p>Should you invest $1,000 in Nice right now?<\/p>\n<p>Before you buy stock in Nice, consider this:<\/p>\n<p>The Motley Fool Stock Advisor analyst team just identified what they believe are the <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=e254c5bf-6b09-4f0e-8787-dfe1613e582e&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001093%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D17514&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" rel=\"noopener nofollow\" target=\"_blank\">10 best stocks<\/a> for investors to buy now\u2026 and Nice wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p>Consider when Netflix made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $649,544!* Or when Nvidia made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $1,113,059!*<\/p>\n<p>Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 1,062% \u2014 a market-crushing outperformance compared to 185% for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n<p><a class=\"ticker_pitch\" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=e254c5bf-6b09-4f0e-8787-dfe1613e582e&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001093%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17514%26ftm_veh%3Darticle_pitch_feed_partners%26company%3DNice&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1e2d8cbd-761b-451e-a132-42bd193a370c\" rel=\"noopener nofollow\" target=\"_blank\">See the 10 stocks \u00bb<\/a><\/p>\n<p>*Stock Advisor returns as of August 13, 2025<\/p>\n<p><a href=\"https:\/\/www.fool.com\/author\/2146\/\" target=\"_blank\" rel=\"noopener nofollow\">Josh Kohn-Lindquist<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nice. The Motley Fool recommends Gartner. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" target=\"_blank\" rel=\"noopener nofollow\">disclosure policy<\/a>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" style=\"display:none;\" referrerpolicy=\"unsafe-url\" src=\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/788a5d8017461d1193a9362d0b0e33c1\/pixel%3Fslug%3Dmotleyfoolgm-2025-8-14-why-nice-stock-sank-today\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"Key Points Nice is a leader in enterprise software &#8212; specifically in the contact-center-as-a-service industry. The company&#8217;s second-quarter&hellip;\n","protected":false},"author":2,"featured_media":69586,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[45,49,48,2640,43718,2637,2636,2639,2638,2641,2182,100,1837],"class_list":["post-69585","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-ca","tag-canada","tag-futures","tag-gartner-inc","tag-index-market-quote","tag-index-market-quotes","tag-index-market-symbol","tag-index-market-symbols","tag-indices","tag-it","tag-markets","tag-the-globe-and-mail"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/69585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=69585"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/69585\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/69586"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=69585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=69585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=69585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}