What Happened?
A number of stocks fell in the morning session after markets became increasingly wary of high valuations following a significant AI-driven rally.
The tech-heavy Nasdaq fell approximately 1.4% as a wave of caution swept through the market. A key example of this trend is Palantir Technologies, which saw its shares drop around 7% despite reporting record quarterly results that surpassed analyst estimates and raising its full-year revenue outlook. This seemingly contradictory movement highlighted a broader sentiment shift. Investors appeared to be engaging in profit-taking, concerned that the recent surge in AI-related stocks had led to stretched valuations. This broader market caution affected high-growth technology companies that had previously surged on AI optimism but faced increased scrutiny, signaling a potential cooling-off period for the sector.
Adding serious weight to this caution, leadership at both Goldman Sachs and Morgan Stanley highlighted the possibility of a correction in the equity markets over the next couple of years. Despite the euphoria driven by AI optimism and the promise of future rate cuts, these banks viewed this cooling-off period not as a disaster, but as a necessary and healthy feature of a long-term bull market.
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:
- Traditional Media & Publishing company EchoStar (NASDAQ: SATS) fell 2.9%. Is now the time to buy EchoStar? Access our full analysis report here, it’s free for active Edge members.
- Specialized Technology company Mirion (NYSE: MIR) fell 3.9%. Is now the time to buy Mirion? Access our full analysis report here, it’s free for active Edge members.
- Electronic Components & Manufacturing company Amphenol (NYSE: APH) fell 2.9%. Is now the time to buy Amphenol? Access our full analysis report here, it’s free for active Edge members.
- Hardware & Infrastructure company Pure Storage (NYSE: PSTG) fell 2.6%. Is now the time to buy Pure Storage? Access our full analysis report here, it’s free for active Edge members.
- Electronic Components & Manufacturing company Jabil (NYSE: JBL) fell 3.3%. Is now the time to buy Jabil? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Mirion (MIR)
Mirion’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 15.5% on the news that it reported strong third-quarter 2025 financial results that beat Wall Street's profit expectations. Revenue for the quarter grew 7.9% from the previous year to $223.1 million, meeting analyst forecasts. The company's profitability showed notable improvement, with adjusted earnings per share coming in at $0.12, which was 17.1% ahead of the consensus forecast. This bottom-line outperformance was supported by expanding margins, as Mirion's operating margin increased to 3.3% from just 0.1% in the same quarter last year, demonstrating improved efficiency. Adding to investor optimism, management provided an outlook for full-year adjusted EBITDA that was above Wall Street's projections, signaling confidence in the company's continued performance.
Mirion is up 65.6% since the beginning of the year, and at $28.06 per share, it is trading close to its 52-week high of $29.75 from October 2025. Investors who bought $1,000 worth of Mirion’s shares 5 years ago would now be looking at an investment worth $2,807.
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