Coinbase, eHealth, Etsy, Udemy, and Cars.com Shares Are Falling, What You Need To Know
A number of stocks fell in the afternoon session after markets pulled back as hotter-than-expected wholesale inflation data was released, raising concerns about the future path of interest rates. The U.S. Labor Department reported that the Producer Price Index (PPI), which measures inflation at the wholesale level, jumped 3.3% year-over-year in July, significantly above economists' forecasts of 2.5%. This unexpected increase suggests that cost pressures are building for businesses, which could eventually be passed on to consumers. The hotter-than-expected data prompted investors to scale back bets on an imminent interest rate cut by the Federal Reserve. Higher interest rates can dampen economic activity and negatively affect the valuations of growth-oriented stocks, such as those in the internet sector, leading to a broad market retreat.
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:
Financial Technology company Coinbase (NASDAQ:COIN) fell 3.1%. Is now the time to buy Coinbase? Access our full analysis report here, it's free.
Online Marketplace company eHealth (NASDAQ:EHTH) fell 3.8%. Is now the time to buy eHealth? Access our full analysis report here, it's free.
Online Marketplace company Etsy (NASDAQ:ETSY) fell 3%. Is now the time to buy Etsy? Access our full analysis report here, it's free.
Consumer Subscription company Udemy (NASDAQ:UDMY) fell 3.1%. Is now the time to buy Udemy? Access our full analysis report here, it's free.
Online Marketplace company Cars.com (NYSE:CARS) fell 3.7%. Is now the time to buy Cars.com? Access our full analysis report here, it's free.
Zooming In On eHealth (EHTH)
eHealth's shares are extremely volatile and have had 52 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 1 day ago when the stock gained 4.3% on the news that 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.
eHealth is down 60.9% since the beginning of the year, and at $3.49 per share, it is trading 68.7% below its 52-week high of $11.14 from February 2025. Investors who bought $1,000 worth of eHealth's shares 5 years ago would now be looking at an investment worth $46.98.
Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
What Adyen's tariff troubles portend for payments companies
Tariffs and the subsequent global trade war are hurting Adyen's financial outlook, causing the company to seek ways to deemphasize the U.S. "The tariffs are impacting some of our Asia Pacific merchants," Adyen CEO Ingo Uytdehaage said during Adyen's earnings the first half of 2025, Adyen reported net revenue of $1.27 billion, lower than the $1.3 billion forecast by LSEG analysts. First half earnings before interest, taxes and amortization were $635 million, lower than the $643 million estimated by analysts. Adyen also said its previously forecast "slight net revenue growth" is "unlikely" due to an increasingly uncertain macroeconomics. Adyen did not return a request for comment. Beyond the impact of tariffs, Adyen reported strong results, such as wallet share gains among existing merchants and improvements in adding new customers. But "the downward revision in full year net revenue growth guidance and commentary suggesting a persistent macro headwind in the second half will likely overshadow the positive data points," KeyBanc Capital Markets said in an analyst note on Adyen. "We walk away incrementally cautious on the balance of the year." Less focus on the U.S. Adyen, which is headquartered in Amsterdam, also has operations in the U.S. The company has accumulated a portfolio of payment and financial services products in competition with Stripe, Block, PayPal and other companies that sell payment technology to small businesses globally. Uytdehaage told analysts that it would attempt to route more transactions from China to non-U.S. consumers to reduce economic pressure from the trade war. "That's how we look at things we can't control," Uytdehaage said of viewing the tariffs as an "opportunity." "We can help those merchants move into new markets." While payment firms are looking at how tariffs and tighter immigration policy impact inflation and payment volume, there's one particular change that is heavily impacting China, and thus could hit Asian payment volume particularly hard. Read more about tariffs. Tariffs and Banking: Key Insights and Analysis | American Banker In Adyen's case the tariff impacts partly include the suspension of the de minimus rule. Tariffs for goods under $800 traditionally were waived under the rule. Large firms that sell Chinese goods, such as Temu and Shein, are subject to the de minimus rule's discontinuation given their large sales volumes of lower-cost items to the U.S. via e-commerce. Losing the $800 waiver exposes small purchases to the same uncertain tariffs as larger purchases. Adyen did not disclose its exposure to Shein or Temu, but its revenue includes transaction fees from online retailers, and Adyen attributed its tariff pressure to slower growth from APAC merchants with U.S. e-commerce customers. Downstream pressure While payment companies have mostly projected stronger than expected earnings for 2025, analysts said the recent imposition of new tariffs threaten those outlooks. "While we expect fundamentals in the second quarter to hold up, estimates for many payments companies anticipate a stronger second half relative to the first half driven by timing of growth initiatives or favorable comps," KBW said in a research report on the broader global payments industry. "The key question is whether confidence in the achievability of these growth targets remains intact as the impacts from tariffs in the second half come back into focus." Areas to watch include travel, discretionary online retail given the de minimis tax exemption to China going away, and restaurant spending, according to KBW. "But a weaker dollar should be an incremental tailwind for most of the companies in our coverage," KBW said. The notion that tariffs won't impact the payments industry is wishful thinking or denial, Eric Grover, principal at Intrepid Ventures, told American Banker, noting that tariffs are a tax on imports and are increasing the price of goods for consumers and producers. "They will, therefore, very directly reduce commerce and consequently payments," Grover said. "Cross-border e-commerce is likely to be most immediately and acutely impacted, which is why Adyen in particular is feeling the pain. But the rest of the payments industry isn't immune. Payment networks and processors will suffer, some more than others depending on their mix of business." Adyen has had more exposure outside the U.S., where the impact of tariffs is more likely to be felt, particularly in Asia, Aaron McPherson, principal at AFM Consulting, told American Banker. Another important factor is the delay in tariffs, which has muted their impact thus far, McPherson businesses have absorbed the impact of tariffs, but may soon have to pass on the cost of tariffs to consumers because the businesses can no longer afford the extra expense. Inflation in the U.S. has started to increase along with signs of a weakening labor market. Given these factors, Adyen's relatively weak earnings report may be a harbinger of problems to come, according to McPherson. "We'll need to see more corporate reporting to gauge the full effect of the tariffs, but given that the majority of them only went into effect this week, they would not have shown up in last quarter's numbers anyway," he said. Sign in to access your portfolio
Yahoo
6 minutes ago
- Yahoo
Taiwan Semiconductor Manufacturing Company Limited (TSM) Is Worried About High Construction Costs Of US Plants, Says Jim Cramer
We recently published . Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the stocks Jim Cramer recently discussed. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) isn't a frequent feature of Cramer's morning show despite the fact that the firm is the world's largest contract chip manufacturer. His previous remarks about the company have pointed out that most of its revenue gains are due to orders from NVIDIA. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is playing a key role in bringing chip manufacturing to the US through its multi-billion-dollar facilities in Arizona. However, the firm has faced some troubles, such as rising costs and cultural differences. Here is what Cramer said about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): 'By the way, Taiwan Semi is saying it costs a huge amount of money to build here versus Arizona.' the-main-processor-3334336_1280 Previously, the CNBC TV host discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)'s earnings and financial performance: 'Yeah look, Taiwan Semi reports overnight. It's an unbelievably good number but understand it's really unbelievably good number because of high performance computing. In other words, it's a good number because of NVIDIA. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
6 minutes ago
- Yahoo
Salesforce, Inc. (CRM)'s CEO Is Pushing Back Against The AI Vs Enterprise Software Narrative, Says Jim Cramer
We recently published . Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer recently discussed. Salesforce, Inc. (NYSE:CRM)'s shares have lost 28% year-to-date as the firm has struggled to retain investor attention in the age of AI. Like investors are hawkishly watching its revenue pipeline and revenue commitments for the rest of the year – a fact which led the stock to dip 5% in May after its fiscal first quarter earnings. Cramer discussed the sentiment surrounding enterprise software stocks and CEO Marc Benioff's attempts to counter it: '. . .and I think that people should recognize that these companies are all being viewed as, let's say carrion, because what's happened is this that you can develop your own stuff that is better. Now Marc Benioff is doing some pushback on that by the way, he's saying that if you're doing process stuff, you're not going to be able to, maybe creative, that would be Adobe. But not, Salesforce. So Marc's pushing back Salesforce. . .' Pixabay/Public Domain Here are his previous remarks about Salesforce, Inc. (NYSE:CRM): 'Okay, so Salesforce is a little tough right now because right now, the enterprise software companies are all coming down. I have not been recommending the stock hard. I want to see what happens with the quarter. I wish I could be more definite, but sometimes it's better just to say I don't have a handle on it.' While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
