What Happened?
A number of stocks fell in the afternoon session after sentiment weakened following a surprisingly weak private payrolls report from ADP.
According to the ADP National Employment Report, the U.S. private sector added only 22,000 jobs in January, falling significantly short of economists' estimates of 45,000 to 48,000. The slowdown was led by the manufacturing and the professional and business services sectors. The professional and business services category was particularly hard-hit, shedding 57,000 jobs, marking its most substantial monthly decline since mid-2025. This lackluster hiring data points to a potential cooling in the labor market, raising concerns for companies whose revenues are closely tied to employment levels and business spending.
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:
- Data & Business Process Services company Planet Labs (NYSE: PL) fell 9.4%. Is now the time to buy Planet Labs? Access our full analysis report here, it’s free.
- Satellite Telecommunication Services company Globalstar (NASDAQ: GSAT) fell 4.9%. Is now the time to buy Globalstar? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company WEBTOON (NASDAQ: WBTN) fell 6.2%. Is now the time to buy WEBTOON? Access our full analysis report here, it’s free.
- Satellite Telecommunication Services company Viasat (NASDAQ: VSAT) fell 9.6%. Is now the time to buy Viasat? Access our full analysis report here, it’s free.
- Industrial & Environmental Services company CECO Environmental (NASDAQ: CECO) fell 2.9%. Is now the time to buy CECO Environmental? Access our full analysis report here, it’s free.
Zooming In On Viasat (VSAT)
Viasat’s shares are extremely volatile and have had 60 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 15 days ago when the stock dropped 6% on the news that 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 threatens their global business models.
Viasat is up 4.6% since the beginning of the year, but at $39.36 per share, it is still trading 17.3% below its 52-week high of $47.58 from January 2026. Investors who bought $1,000 worth of Viasat’s shares 5 years ago would now be looking at an investment worth $803.27.
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