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:
- Healthcare Technology for Providers company Evolent Health (NYSE: EVH) jumped 5.6%. Is now the time to buy Evolent Health? Access our full analysis report here, it’s free.
- Generic Pharmaceuticals company Amphastar Pharmaceuticals (NASDAQ: AMPH) jumped 5%. Is now the time to buy Amphastar Pharmaceuticals? Access our full analysis report here, it’s free.
- Satellite Telecommunication Services company Iridium (NASDAQ: IRDM) jumped 5.7%. Is now the time to buy Iridium? Access our full analysis report here, it’s free.
- Advertising & Marketing Services company Magnite (NASDAQ: MGNI) jumped 5.6%. Is now the time to buy Magnite? Access our full analysis report here, it’s free.
Zooming In On Iridium (IRDM)
Iridium’s shares are quite volatile and have had 17 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.
Iridium is down 11.2% since the beginning of the year, and at $26.27 per share, it is trading 21.7% below its 52-week high of $33.57 from October 2024. Investors who bought $1,000 worth of Iridium’s shares 5 years ago would now be looking at an investment worth $1,099.
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