The Trade Desk, Wix, Yext, UiPath, and 8x8 Stocks Trade Down, What You Need To Know

What Happened?

A number of stocks fell in the afternoon session after markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut. The U.S. Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.9% month-over-month in July, far exceeding the 0.2% increase that economists had predicted. Annually, prices at the wholesale level jumped 3.3%, also surpassing the 2.5% forecast. This hotter-than-expected data has poured cold water on widespread expectations for an interest rate cut from the Federal Reserve next month. Persistent inflation makes it less likely for the central bank to ease monetary policy. Sectors with high-growth stocks, such as SaaS, are particularly sensitive to interest rate changes, as the prospect of higher rates for longer can diminish the present value of their future earnings, leading to a decline in stock prices.

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:

• Advertising Software company The Trade Desk (NASDAQ:TTD) fell 6.9%. Is now the time to buy The Trade Desk? Access our full analysis report here, it’s free.
• E-commerce Software company Wix (NASDAQ:WIX) fell 3.2%. Is now the time to buy Wix? Access our full analysis report here, it’s free.
• Listing Management Software company Yext (NYSE:YEXT) fell 3.4%. Is now the time to buy Yext? Access our full analysis report here, it’s free.
• Automation Software company UiPath (NYSE:PATH) fell 3.1%. Is now the time to buy UiPath? Access our full analysis report here, it’s free.
• Video Conferencing company 8x8 (NASDAQ:EGHT) fell 4.3%. Is now the time to buy 8x8? Access our full analysis report here, it’s free.

Zooming In On The Trade Desk (TTD)

The Trade Desk’s shares are very volatile and have had 23 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 3 days ago when the stock gained 3.1% on the news that the stock rebounded following a significant drop in the previous week. The positive movement was partly fueled by Cathie Wood's ARK Invest, which had been buying up shares of The Trade Desk, demonstrating a bullish long-term outlook despite the recent downturn. This institutional support and a belief in the company's long-term growth potential in the digital advertising space likely contributed to the stock's recovery.

The Trade Desk is down 56.9% since the beginning of the year, and at $50.69 per share, it is trading 63.7% below its 52-week high of $139.51 from December 2024. Investors who bought $1,000 worth of The Trade Desk’s shares 5 years ago would now be looking at an investment worth $1,089.

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