What Happened?
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
This move is far more than a typical trade dispute; it targets the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals. This move has sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks.
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:
- Finance and Accounting Software company Bill.com (NYSE: BILL) fell 3.1%. Is now the time to buy Bill.com? Access our full analysis report here, it’s free.
- Compliance Software company Workiva (NYSE: WK) fell 3.1%. Is now the time to buy Workiva? Access our full analysis report here, it’s free.
- Cloud Monitoring company PagerDuty (NYSE: PD) fell 5.2%. Is now the time to buy PagerDuty? Access our full analysis report here, it’s free.
- E-commerce Software company BigCommerce (NASDAQ: BIGC) fell 4.2%. Is now the time to buy BigCommerce? Access our full analysis report here, it’s free.
- Banking Software company Q2 Holdings (NYSE: QTWO) fell 4.1%. Is now the time to buy Q2 Holdings? Access our full analysis report here, it’s free.
Zooming In On PagerDuty (PD)
PagerDuty’s shares are somewhat volatile and have had 12 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.
PagerDuty is down 17.4% since the beginning of the year, and at $14.87 per share, it is trading 32% below its 52-week high of $21.87 from July 2024. Investors who bought $1,000 worth of PagerDuty’s shares 5 years ago would now be looking at an investment worth $579.28.
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