What Happened?

A number of stocks fell in the afternoon session after stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains. 

Also, President Trump said he was willing to accept pain in the short term, and was aware his policies could cause a recession, but he remained more mindful of a more severe case of economic depression (higher unemployment and prolonged downturn). For investors, this suggested that the administration could prioritize long-term structural shifts over near-term economic stability, further increasing policy-driven risk in the markets.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, following stocks were impacted:

• Apparel and Accessories company Columbia Sportswear (NASDAQ: COLM) fell 5.4%. Is now the time to buy Columbia Sportswear? Access our full analysis report here, it’s free.
• Apparel and Accessories company Under Armour (NYSE: UAA) fell 10.5%. Is now the time to buy Under Armour? Access our full analysis report here, it’s free.
• Apparel and Accessories company Carter's (NYSE: CRI) fell 8.5%. Is now the time to buy Carter's? Access our full analysis report here, it’s free.
• Media company Disney (NYSE: DIS) fell 8.1%. Is now the time to buy Disney? Access our full analysis report here, it’s free.
• Media company Warner Bros. Discovery (NASDAQ: WBD) fell 14.9%. Is now the time to buy Warner Bros. Discovery? Access our full analysis report here, it’s free.

Zooming In On Warner Bros. Discovery (WBD)

Warner Bros. Discovery’s shares are very volatile and have had 25 moves greater than 5% over the last year. But moves this big are rare even for Warner Bros. Discovery and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock gained 14.3% on the news that the company revealed plans to split its business into two separate units: Global Linear Networks and Streaming & Studios. This change was to simplify the organization's structure and provide more clarity in each unit. Global Linear Networks would focus on generating profits and increasing free cash flow while Streaming & Studios prioritizes growth and returns on invested capital.

Warner Bros. Discovery is down 23.9% since the beginning of the year, and at $8.11 per share, it is trading 35.1% below its 52-week high of $12.49 from December 2024. Investors who bought $1,000 worth of Warner Bros. Discovery’s shares 5 years ago would now be looking at an investment worth $368.80.

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