What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran.
The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
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:
- Data Analytics company Domo (NASDAQ: DOMO) jumped 5.5%. Is now the time to buy Domo? Access our full analysis report here, it’s free.
- Data Storage company DigitalOcean (NYSE: DOCN) jumped 5.1%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free.
- Apparel and Accessories company Stitch Fix (NASDAQ: SFIX) jumped 5.1%. Is now the time to buy Stitch Fix? Access our full analysis report here, it’s free.
- Sit-Down Dining company BJ's (NASDAQ: BJRI) jumped 5.3%. Is now the time to buy BJ's? Access our full analysis report here, it’s free.
- Sit-Down Dining company Denny's (NASDAQ: DENN) jumped 5.3%. Is now the time to buy Denny's? Access our full analysis report here, it’s free.
Zooming In On Domo (DOMO)
Domo’s shares are very volatile and have had 27 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 20 days ago when the stock gained 6.2% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Domo is up 93.4% since the beginning of the year, and at $13.71 per share, it is trading close to its 52-week high of $14.63 from June 2025. Investors who bought $1,000 worth of Domo’s shares 5 years ago would now be looking at an investment worth $442.83.
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