What Happened?
A number of stocks fell in the afternoon session after a broader market sell-off triggered by renewed trade tensions. U.S. stock indices fell 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:
- Advertising Software company Zeta (NYSE: ZETA) fell 4.9%. Is now the time to buy Zeta? Access our full analysis report here, it’s free.
- Online Marketplace company Teladoc (NYSE: TDOC) fell 5.2%. Is now the time to buy Teladoc? Access our full analysis report here, it’s free.
- Automation Software company Jamf (NASDAQ: JAMF) fell 3.9%. Is now the time to buy Jamf? Access our full analysis report here, it’s free.
- HR Software company Dayforce (NYSE: DAY) fell 3.6%. Is now the time to buy Dayforce? Access our full analysis report here, it’s free.
- Video Conferencing company 8x8 (NASDAQ: EGHT) fell 4.1%. Is now the time to buy 8x8? Access our full analysis report here, it’s free.
Zooming In On Teladoc (TDOC)
Teladoc’s shares are extremely volatile and have had 43 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 3.5% on the news that the company received a price target increase from an analyst at Evercore ISI Group.
Evercore ISI analyst Elizabeth Anderson raised the firm's price target on the virtual healthcare company to $8.00 from $7.00, while maintaining an "In-Line" rating on the shares. An "In-Line" rating suggests the analyst expects the stock to perform in line with the broader market. While not a full-fledged upgrade, the higher price target indicates a slightly more positive valuation outlook from the analyst.
Teladoc is down 12.2% since the beginning of the year, and at $8.36 per share, it is trading 41.7% below its 52-week high of $14.33 from February 2025. Investors who bought $1,000 worth of Teladoc’s shares 5 years ago would now be looking at an investment worth $38.25.
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