What Happened?

A number of stocks fell in the afternoon session after broader macroeconomic concerns, including an ongoing government shutdown and anticipation of commentary from Federal Reserve officials, began to weigh on investor sentiment. 

After reaching new record highs, major U.S. indices like the S&P 500 and Nasdaq experienced a slight retreat. This pause came as investors grappled with the potential economic impact of a partial government shutdown, which had dampened consumer confidence and delayed the release of key economic data, such as September's nonfarm payrolls. The market appeared to be in a holding pattern as traders anticipated signals from Federal Reserve officials, looking for clues on future monetary policy. The caution in the broader market suggests that wider economic anxieties are currently overriding recent sector-specific optimism.

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:

• Digital Media & Content Platforms company Rumble (NASDAQ: RUM) fell 6%. Is now the time to buy Rumble? Access our full analysis report here, it’s free for active Edge members.
• Hardware & Infrastructure company Pure Storage (NYSE: PSTG) fell 3.6%. Is now the time to buy Pure Storage? Access our full analysis report here, it’s free for active Edge members.
• Industrial & Environmental Services company CECO Environmental (NASDAQ: CECO) fell 4.3%. Is now the time to buy CECO Environmental? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components & Manufacturing company Benchmark (NYSE: BHE) fell 2.9%. Is now the time to buy Benchmark? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components & Manufacturing company Plexus (NASDAQ: PLXS) fell 3.1%. Is now the time to buy Plexus? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Rumble (RUM)

Rumble’s shares are extremely volatile and have had 52 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 4 days ago when the stock gained 17.9% on the news that the company announced a partnership with Perplexity, an AI-powered answer engine. 

The collaboration aimed to improve video discovery on Rumble by using Perplexity's AI tools. The agreement also included the launch of a new subscription bundle that combined Rumble Premium with Perplexity Pro. Additionally, the partnership involved the promotion of Perplexity's new product, Comet, across Rumble's platform. This news was met with enthusiasm from investors, who reacted positively to the potential for enhanced user experience and new revenue opportunities.

Rumble is down 35.6% since the beginning of the year, and at $7.99 per share, it is trading 50.9% below its 52-week high of $16.27 from December 2024.

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