New York, June 3, 2026, 15:08 (EDT)
- JFrog shares fell 4.3% to $84.29 late in the Nasdaq session, dropping from an earlier move up to $88.
- The company said it’s set to join the Russell 3000 after the U.S. market shuts on June 26.
- The move could bring more focus from benchmark funds, but software stocks faced pressure.
JFrog Ltd. shares slid over 4% Wednesday, reversing after the company received a new notice about being added to an index. Investors sold off software stocks in a weak session for U.S. markets. JFrog was trading at $84.29 at 3:08 p.m. in New York, off $3.76, after touching $88.00 earlier.
JFrog said Tuesday it’s set to join the Russell 3000, a major U.S. stock index. The stock will be added after the close on June 26, putting it in either the Russell 1000 or Russell 2000 and linked style indexes.
Index reconstitution, the regular shake-up of a benchmark, often triggers mechanical buying and selling by index-tracking funds. FTSE Russell, a part of LSEG, said about $12.2 trillion in assets are tied to Russell U.S. indexes or products using them. The group said the June 2026 changes will hit after the June 26 close.
Software stocks slid as developer tools names came under pressure. GitLab gave up 3.1%, Atlassian tumbled 7.7% and Datadog also dropped 7.7%. The S&P Software & Services index ended down 3.9% after Wall Street pulled back from record levels, according to Reuters.
JFrog’s index mention comes after the company’s sharp move higher following its first-quarter report in May. Revenue hit $154.0 million, up 26% year-on-year. Cloud revenue was $78.9 million, up 50%. JFrog counted 80 customers with more than $1 million in annual recurring revenue. Annual recurring revenue measures the yearly value of signed repeat software deals.
JFrog CEO Shlomi Ben Haim said the quarter was “solid” and credited cloud growth to “surging demand” from dev teams using AI-powered coding agents. These tools write or review code, which can boost the amount of code that companies need to store, test and secure. JFrog Investor Relations
Bull case boils down to this: as code and packages grow, companies need to keep tighter control over what they release. JFrog sells supply-chain software tools that let firms manage and secure binaries and artifacts—machine-readable files—across development and production.
Stifel last week upped its price target on JFrog to $85 from $75 and stuck with its Buy rating. Stifel analysts cited customer survey data on cloud, security, and increases in binary volume boosted partly by AI coding tools.
Barron’s quoted Guggenheim analysts Howard Ma and Joseph DiBartolomeo saying big AI-native clients “cannot” or find it too complex to replicate what JFrog builds. Ben Haim told Barron’s, “Companies that build infrastructure, we will need more of them.” BTIG’s Nick Altmann said the cautious outlook could mean “continued upside.” Barron’s
JFrog is staying visible this week. The company spoke at the William Blair Growth Conference in Chicago on Wednesday and has another slot set for Thursday at Bank of America’s Global Technology Conference in San Francisco.
But it’s not all upside. JFrog posted a GAAP operating loss in Q1, and Stifel’s survey said cloud migration might not drive a big near-term boost. When a high-growth software stock has run, it can get hit hard if usage growth, security numbers, or AI-related demand fades.
Macro factors offered little support. Ross Mayfield, investment strategy analyst at Baird, told Reuters that names tied to AI were moving in “their own completely separate world.” The rest of the market remained soft as concerns over the Middle East, oil, and inflation took a toll on risk appetite. JFrog traded lower in that risk-off mood, even with an index catalyst ahead. Reuters
