What Happened?
A number of stocks jumped in the afternoon session after investors continued to pile into value-oriented names amid growing valuation concerns. This shift reflected growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, perceived to be more reasonably priced. Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over. The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.
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:
- Apparel and Accessories company Movado (NYSE: MOV) jumped 4.1%. Is now the time to buy Movado? Access our full analysis report here, it’s free for active Edge members.
- Broadcasting company AMC Networks (NASDAQ: AMCX) jumped 5.1%. Is now the time to buy AMC Networks? Access our full analysis report here, it’s free for active Edge members.
- Leisure Facilities company Topgolf Callaway (NYSE: MODG) jumped 3.7%. Is now the time to buy Topgolf Callaway? Access our full analysis report here, it’s free for active Edge members.
- Specialized Consumer Services company Mister Car Wash (NASDAQ: MCW) jumped 3.1%. Is now the time to buy Mister Car Wash? Access our full analysis report here, it’s free for active Edge members.
- Leisure Facilities company Sphere Entertainment (NYSE: SPHR) jumped 2.9%. Is now the time to buy Sphere Entertainment? Access our full analysis report here, it’s free for active Edge members.
Zooming In On AMC Networks (AMCX)
AMC Networks’s shares are extremely volatile and have had 30 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 2 days ago when the stock gained 9.3% on the news that analysts at Wells Fargo upgraded the company's stock to 'Equalweight' from a previous rating. The upgrade followed the company's recent third-quarter report. While total sales fell 6.3% from the year before and profit missed analyst estimates, the company's results beat revenue expectations. The market reacted positively as strong growth in streaming helped make up for declines in its traditional cable business. Chief Executive Officer Kristin Dolan said the quarter marked a key milestone in the company's transition to a streaming-focused content company.
AMC Networks is down 18% since the beginning of the year, and at $8.18 per share, it is trading 21.4% below its 52-week high of $10.41 from January 2025. Investors who bought $1,000 worth of AMC Networks’s shares 5 years ago would now be looking at an investment worth $329.04.
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