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:
- Data Storage company DigitalOcean (NYSE: DOCN) fell 4%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free.
- Video Conferencing company Five9 (NASDAQ: FIVN) fell 3.8%. Is now the time to buy Five9? Access our full analysis report here, it’s free.
- Data Analytics company Domo (NASDAQ: DOMO) fell 4%. Is now the time to buy Domo? Access our full analysis report here, it’s free.
- Vulnerability Management company Qualys (NASDAQ: QLYS) fell 3.5%. Is now the time to buy Qualys? Access our full analysis report here, it’s free.
- Endpoint Security company Varonis (NASDAQ: VRNS) fell 4.1%. Is now the time to buy Varonis? Access our full analysis report here, it’s free.
Zooming In On Varonis (VRNS)
Varonis’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Varonis is up 11.1% since the beginning of the year, but at $49.28 per share, it is still trading 17.8% below its 52-week high of $59.98 from October 2024. Investors who bought $1,000 worth of Varonis’s shares 5 years ago would now be looking at an investment worth $1,478.
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