What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) 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:
- Travel and Vacation Providers company Carnival (NYSE: CCL) jumped 5.5%. Is now the time to buy Carnival? Access our full analysis report here, it’s free.
- Travel and Vacation Providers company Norwegian Cruise Line (NYSE: NCLH) jumped 5.3%. Is now the time to buy Norwegian Cruise Line? Access our full analysis report here, it’s free.
- Travel and Vacation Providers company Sabre (NASDAQ: SABR) jumped 5.1%. Is now the time to buy Sabre? Access our full analysis report here, it’s free.
- Travel and Vacation Providers company Lindblad Expeditions (NASDAQ: LIND) jumped 6.2%. Is now the time to buy Lindblad Expeditions? Access our full analysis report here, it’s free.
- Media company Warner Bros. Discovery (NASDAQ: WBD) jumped 6.7%. 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. 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 6 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.
Warner Bros. Discovery is down 10% since the beginning of the year, and at $9.59 per share, it is trading 23.2% 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 $423.97.
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