What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Video Conferencing company 8x8 (NASDAQ: EGHT) jumped 5%. Is now the time to buy 8x8? Access our full analysis report here, it’s free.
- Analog Semiconductors company Himax (NASDAQ: HIMX) jumped 6.1%. Is now the time to buy Himax? Access our full analysis report here, it’s free.
- Gig Economy company Angi (NASDAQ: ANGI) jumped 5%. Is now the time to buy Angi? Access our full analysis report here, it’s free.
- Gaming Solutions company PlayStudios (NASDAQ: MYPS) jumped 8.1%. Is now the time to buy PlayStudios? Access our full analysis report here, it’s free.
- Heavy Transportation Equipment company Shyft (NASDAQ: SHYF) jumped 7.7%. Is now the time to buy Shyft? Access our full analysis report here, it’s free.
Zooming In On PlayStudios (MYPS)
PlayStudios’s shares are extremely volatile and have had 45 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 biggest move we wrote about over the last year was 10 months ago when the stock dropped 21.5% on the news that the company reported weak second quarter 2024 results. Its full-year revenue guidance was lowered and revenue and EPS fell short of Wall Street's estimates during the quarter.
The company called out "persistent industry weakness," which affected some of its game portfolio, and these weaknesses were expected to persist for the rest of the year. Overall, this was a bad quarter for PlayStudios.
PlayStudios is down 20.4% since the beginning of the year, and at $1.51 per share, it is trading 36.8% below its 52-week high of $2.38 from June 2024.
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