What Happened?
A number of stocks fell in the afternoon session after the broader U.S. stock market declined amid investor caution and a pullback in technology stocks.
The main story? Investors are cashing in on a good run and feeling a bit cautious. After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains. This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced.
There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.
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:
- Defense Contractors company Kratos (NASDAQ: KTOS) fell 6.4%. Is now the time to buy Kratos? Access our full analysis report here, it’s free for active Edge members.
- Electronic Components company Advanced Energy (NASDAQ: AEIS) fell 5.7%. Is now the time to buy Advanced Energy? Access our full analysis report here, it’s free for active Edge members.
- Aerospace company Curtiss-Wright (NYSE: CW) fell 5.7%. Is now the time to buy Curtiss-Wright? Access our full analysis report here, it’s free for active Edge members.
- Renewable Energy company Blink Charging (NASDAQ: BLNK) fell 8.6%. Is now the time to buy Blink Charging? Access our full analysis report here, it’s free for active Edge members.
- Renewable Energy company American Superconductor (NASDAQ: AMSC) fell 5.3%. Is now the time to buy American Superconductor? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Blink Charging (BLNK)
Blink Charging’s shares are extremely volatile and have had 83 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 8 days ago when the stock gained 5.7% on the news that the company announced a partnership with UK social housing provider Karbon Homes to expand its electric vehicle (EV) charging infrastructure. The collaboration aimed to equip about 34,000 homes across the Northeast of England and Yorkshire with EV chargers. This news added to positive developments from the previous day when Blink Charging announced it received final court approval to settle a derivative lawsuit involving some of its current and former officers and directors. The move also came just before the company was scheduled to release its third-quarter 2025 earnings report.
Blink Charging is down 4% since the beginning of the year, and at $1.44 per share, it is trading 42.4% below its 52-week high of $2.50 from October 2025. Investors who bought $1,000 worth of Blink Charging’s shares 5 years ago would now be looking at an investment worth $148.45.
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