What Happened?
A number of stocks fell in the after-market session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%.
Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures.
Wedbush analyst Dan Ives captured the prevailing market anxiety, stating, "We would characterize this slate of tariffs as 'worse than the worst case scenario' the Street was fearing." His comment highlighted how the scope and severity of the tariffs far exceeded Wall Street's expectations, adding a new layer of uncertainty for businesses and investors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, following stocks were impacted:
- Cloud Monitoring company PagerDuty (NYSE:PD) fell 17.4%. Is now the time to buy PagerDuty? Access our full analysis report here, it’s free.
- Gig Economy company Uber (NYSE:UBER) fell 6.4%. Is now the time to buy Uber? Access our full analysis report here, it’s free.
- Gig Economy company DoorDash (NASDAQ:DASH) fell 9.6%. Is now the time to buy DoorDash? Access our full analysis report here, it’s free.
- Electronics & Gaming Retailer company GameStop (NYSE:GME) fell 6.6%. Is now the time to buy GameStop? Access our full analysis report here, it’s free.
- Advertising Software company LiveRamp (NYSE:RAMP) fell 15%. Is now the time to buy LiveRamp? Access our full analysis report here, it’s free.
Zooming In On PagerDuty (PD)
PagerDuty’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for PagerDuty and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 21 days ago when the stock gained 18.8% on the news that the company put up impressive fourth quarter 2024 results: PagerDuty's strong growth in customers allowed it to beat analysts' revenue, EPS, and adjusted operating income expectations.
The only soft spot was revenue guidance for the year (2025), which came in just a bit below expectations. PagerDuty sees revenue growing 7%-8% for the full year, a slight slowdown from 2024's 8.5% gain. Still, the company's ability to grow sales helped push its non-GAAP operating margin up during the quarter, nearly doubling from last year. This improvement contributed to the earnings beat. And given its strong full EPS guidance, it's clear the company is staying focused on profitability. Overall, this was a solid quarter.
PagerDuty is down 5% since the beginning of the year, and at $17.10 per share, it is trading 26.2% below its 52-week high of $23.17 from April 2024. Investors who bought $1,000 worth of PagerDuty’s shares 5 years ago would now be looking at an investment worth $1,132.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.