What Happened?
A number of stocks jumped in the afternoon session after investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across 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:
- Electrical Systems company Atkore (NYSE: ATKR) jumped 9.5%. Is now the time to buy Atkore? Access our full analysis report here, it’s free.
- Automation Software company SoundHound AI (NASDAQ: SOUN) jumped 9.5%. Is now the time to buy SoundHound AI? Access our full analysis report here, it’s free.
- Design Software company Unity (NYSE: U) jumped 5.7%. Is now the time to buy Unity? Access our full analysis report here, it’s free.
- Online Retail company Carvana (NYSE: CVNA) jumped 11.8%. Is now the time to buy Carvana? Access our full analysis report here, it’s free.
- Apparel and Accessories company ThredUp (NASDAQ: TDUP) jumped 14.6%. Is now the time to buy ThredUp? Access our full analysis report here, it’s free.
Zooming In On ThredUp (TDUP)
ThredUp’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. But moves this big are rare even for ThredUp and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 52.6% on the news that the company reported weak second-quarter 2024 earnings. Its full-year revenue guidance missed, and its revenue guidance for the next quarter fell short of Wall Street's estimates. Notably, management called out "challenges in both the U.S. and Europe." Overall, this was a mediocre quarter for ThredUp.
ThredUp is up 171% since the beginning of the year, and at $3.83 per share, has set a new 52-week high. Investors who bought $1,000 worth of ThredUp’s shares at the IPO in March 2021 would now be looking at an investment worth $191.25.
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