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:
- Toys and Electronics company Bark (NYSE: BARK) jumped 7.4%. Is now the time to buy Bark? Access our full analysis report here, it’s free.
- Specialized Consumer Services company Matthews (NASDAQ: MATW) jumped 5.7%. Is now the time to buy Matthews? Access our full analysis report here, it’s free.
- Construction Machinery company Terex (NYSE: TEX) jumped 5.6%. Is now the time to buy Terex? Access our full analysis report here, it’s free.
- Specialty Equipment Distributors company Alta (NYSE: ALTG) jumped 6.6%. Is now the time to buy Alta? Access our full analysis report here, it’s free.
- Waste Management company Montrose (NYSE: MEG) jumped 5.5%. Is now the time to buy Montrose? Access our full analysis report here, it’s free.
Zooming In On Bark (BARK)
Bark’s shares are extremely volatile and have had 43 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 12 months ago when the stock dropped 20.4% on the news that the company reported weak first-quarter 2024 results and provided weak guidance.
Specifically, revenue and adjusted EBITDA guidance for the upcoming quarter and the full year came in below expectations. Revenue was also underwhelming during the quarter, down 3.6% year on year. The weakness was attributed to "fewer total orders in the most recent period, largely related to the Company carrying fewer BarkBox and Super Chewer subscriptions into the quarter." The weakness mostly affected the Direct to Consumer (DTC) segment.
On the other hand, Commerce revenue rose 20.9% year-over-year. Overall, this was a weaker quarter for BARK.
Bark is down 31.2% since the beginning of the year, and at $1.30 per share, it is trading 45.8% below its 52-week high of $2.40 from December 2024. Investors who bought $1,000 worth of Bark’s shares at the IPO in December 2020 would now be looking at an investment worth $104.84.
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