What Happened?
Shares of performance marketing company QuinStreet (NASDAQ: QNST) jumped 7.7% in the morning session after the company agreed to acquire HomeBuddy, a digital marketplace for home services, for $190 million. The deal involved $115 million in cash at closing, with an additional $75 million in payments spread over four years. HomeBuddy, which connects homeowners with service professionals, generated about $141 million in revenue for the twelve months that ended September 30, 2025. QuinStreet expected the acquisition to immediately boost its financial results, projecting an addition of at least $30 million to its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first year after the transaction closed. This move placed QuinStreet more firmly in the large and growing home improvement sector.
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What Is The Market Telling Us
QuinStreet’s shares are quite volatile and have had 15 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 12 days ago when the stock gained 4.6% on the news that comments from a key Federal Reserve official hinted at a potential interest rate cut in December. John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.
QuinStreet is down 35.8% since the beginning of the year, and at $15.01 per share, it is trading 40.4% below its 52-week high of $25.17 from February 2025. Investors who bought $1,000 worth of QuinStreet’s shares 5 years ago would now be looking at an investment worth $807.59.
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