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A number of stocks fell in the afternoon session after geopolitical tensions between the United States and the European Union escalated, sparking fears of a renewed trade war.
The broader markets adopted a "risk-off" mode, with investors seeking safe-haven assets amidst the uncertainty. The market's primary fear gauge, the VIX, jumped to a fresh eight-week high, signaling rising investor anxiety. The dispute, centered on Greenland, raised the possibility of a revived trade conflict, which could disrupt global supply chains and economic activity. Mega-cap technology stocks, many of which have significant international sales and operations, were particularly affected by the souring risk sentiment as a potential trade war threatened their global business models.
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:
Commerce’s shares are very volatile and have had 22 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 7 days ago when the stock dropped 3.2% on the news that a Barclays analyst lowered the price target on the stock.
Analyst Raimo Lenschow maintained an "Underweight" rating on Commerce.com but cut the price target significantly to $3.00 from a previous target of $5.00. This action signaled a more pessimistic view of the company's future stock performance from the analyst. A lower price target can suggest that an analyst believes the stock has less room to grow or could even fall from its current levels, which likely concerned investors and prompted selling.
Commerce is down 13.7% since the beginning of the year, and at $3.51 per share, it is trading 50.6% below its 52-week high of $7.09 from February 2025. Investors who bought $1,000 worth of Commerce’s shares 5 years ago would now be looking at an investment worth $55.88.
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