What Happened?

A number of stocks jumped in the afternoon session after markets continued to rally as the latest inflation data reinforced expectations for a Federal Reserve rate cut as soon as September. The latest Consumer Price Index (CPI) report for July showed inflation holding steady, reinforcing market expectations that the Federal Reserve could begin cutting interest rates as soon as September. Lower interest rates generally stimulate the economy by making borrowing cheaper for consumers and businesses. This can lead to increased consumer spending and e-commerce activity, which directly benefits online retail and marketplace companies. The positive economic outlook fueled a broad-based rally, pushing the S&P 500 and Nasdaq to new record highs and lifting most growth-oriented technology stocks.

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:

• Gig Economy company Angi (NASDAQ: ANGI) jumped 5.2%. Is now the time to buy Angi? Access our full analysis report here, it’s free.
• Consumer Subscription company Bumble (NASDAQ: BMBL) jumped 12.8%. Is now the time to buy Bumble? Access our full analysis report here, it’s free.
• Online Retail company Chewy (NYSE: CHWY) jumped 7.8%. Is now the time to buy Chewy? Access our full analysis report here, it’s free.
• Consumer Subscription company Roku (NASDAQ: ROKU) jumped 3.7%. Is now the time to buy Roku? Access our full analysis report here, it’s free.
• Online Marketplace company Teladoc (NYSE: TDOC) jumped 8.8%. Is now the time to buy Teladoc? Access our full analysis report here, it’s free.

Zooming In On Bumble (BMBL)

Bumble’s shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Bumble 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 7.8% on the news that an analyst at UBS raised the price target on the stock and positive sentiment lifted consumer-focused companies. UBS analyst Chris Kuntarich increased the firm's price target on Bumble to $7.50 from $6.00 while maintaining a "Neutral" rating on the shares. The move came amid a broader rally for consumer internet stocks. Market sentiment received a boost after the announcement of a new U.S.-Japan trade deal, which eased investor concerns over international trade disputes by lowering proposed tariffs on certain imports. This development was seen as a positive for the economy, potentially supporting consumer purchasing power. For a company like Bumble, whose revenue depended on users paying for subscriptions and premium features, signs of a confident consumer were a positive indicator.

Bumble is down 20.2% since the beginning of the year, and at $6.36 per share, it is trading 30% below its 52-week high of $9.08 from November 2024. Investors who bought $1,000 worth of Bumble’s shares at the IPO in February 2021 would now be looking at an investment worth $90.46.

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