Took a closer look at yesterday's $CTSH (Cognizant Technology) drop.

The timeline:

• Recent months: general negative sentiment toward IT services on fears of AI disruption.

• June 11: Nasdaq announced its quarterly reconstitution, including $CTSH's exclusion from the Nasdaq-100.

• June 15: latest available short interest data on NASDAQ. 7.3 days to cover, the highest this year.

• June 18: Accenture's Q3 FY2026 release, with weak guidance.

• June 22: the actual exclusion from the Nasdaq-100 and the start of passive selling.

In sum: it really looks like the sell-off was driven by general sentiment and index fund mechanical selling, not by something company-specific. In case of positive news, the accumulated short positions might give the stock a nice boost. Of course, only if the company has good news. If the Q2 report shows the same uncertainty as Accenture's, the sell-off may well continue. But at least $CTSH remains an interesting candidate for research.

I initiated a small position yesterday at €34.97 (≈ $39.74 at EUR/USD 1.1363). No real conviction yet; the buy is just to put the stock under a microscope: "the only way to really know a security is to own it" (substack.com/@ibayes/no…). Full research next, then I either sell entirely or buy more.

Not investment advice. I write strictly about my own portfolio decisions; your situation might be entirely different. Always do your own research or consult a professional before making financial decisions.