Manhattan Associates just gave investors a sentiment shock. The stock dropped about 6% today from roughly US$204 to around US$191 even though the company posted what management called record Q2 and first half results, with Q2 revenue of US$298m and adjusted operating margin of 34.9%. The emotional hit sits squarely on the short term price screen, while the earnings story rests on strong cloud growth and record bookings.

For you as a shareholder or watcher, the key question is whether that selloff reflects a real concern about profitability or a quick reaction to headline optics. The rest of this earnings breakdown examines that gap between price and fundamentals.

Is Manhattan Associates a genuine bargain after today’s 6% drop, or…