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:
- Processors and Graphics Chips company Allegro MicroSystems (NASDAQ: ALGM) jumped 7.8%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it’s free.
- Consumer Electronics company GoPro (NASDAQ: GPRO) jumped 9.7%. Is now the time to buy GoPro? Access our full analysis report here, it’s free.
- Footwear company Genesco (NYSE: GCO) jumped 6.1%. Is now the time to buy Genesco? Access our full analysis report here, it’s free.
- Department Store company Kohl's (NYSE: KSS) jumped 5.6%. Is now the time to buy Kohl's? Access our full analysis report here, it’s free.
- Home Furniture Retailer company Sleep Number (NASDAQ: SNBR) jumped 8%. Is now the time to buy Sleep Number? Access our full analysis report here, it’s free.
Zooming In On GoPro (GPRO)
GoPro’s shares are extremely volatile and have had 54 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 10% after 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.
GoPro is down 19.6% since the beginning of the year, and at $0.88 per share, it is trading 49.8% below its 52-week high of $1.76 from July 2024. Investors who bought $1,000 worth of GoPro’s shares 5 years ago would now be looking at an investment worth $193.08.
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