Western Digital, AppLovin, Matson, AeroVironment, and OSI Systems Stocks Trade Up, What You Need To Know
A number of stocks jumped in the afternoon session after a new trade agreement between the United States and Japan spurred a broad market rally.
The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual 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:
Memory Semiconductors company Western Digital (NASDAQ:WDC) jumped 3.5%. Is now the time to buy Western Digital? Access our full analysis report here, it's free.
Advertising Software company AppLovin (NASDAQ:APP) jumped 3.2%. Is now the time to buy AppLovin? Access our full analysis report here, it's free.
Marine Transportation company Matson (NYSE:MATX) jumped 3.4%. Is now the time to buy Matson? Access our full analysis report here, it's free.
Defense Contractors company AeroVironment (NASDAQ:AVAV) jumped 3.3%. Is now the time to buy AeroVironment? Access our full analysis report here, it's free.
Specialized Technology company OSI Systems (NASDAQ:OSIS) jumped 3.3%. Is now the time to buy OSI Systems? Access our full analysis report here, it's free.
Zooming In On Western Digital (WDC)
Western Digital's shares are very volatile and have had 22 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 9 months ago when the stock gained 13.1% on the news that the company reported strong third-quarter earnings with significant gross margin improvement, which helped to beat on adjusted operating profit and adjusted EPS.
Notably, the cloud segment (54% of overall revenue) contributed the most to the top-line outperformance, accelerating 17% sequentially and 153% year on year. This was powered by what management considered "higher nearline shipments in HDD and enterprise SSD bit shipments to data center customers" and more than offsetting softness in the client and consumer segments. While guidance for next quarter's revenue and adjusted EPS slightly missed Wall Street's estimates, the market seemed to overlook this.
Western Digital is up 12% since the beginning of the year, and at $69.28 per share, it is trading close to its 52-week high of $73.43 from December 2024. Investors who bought $1,000 worth of Western Digital's shares 5 years ago would now be looking at an investment worth $1,501.
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
New York Post
3 minutes ago
- New York Post
Stocks surge, euro steady after US-EU trade agreement
Global stocks rose and the euro appreciated on Monday after a trade agreement between the United States and the EU lifted sentiment and provided some clarity in a week of key policy meetings by the Federal Reserve and the Bank of Japan. The US struck a framework trade agreement with the European Union, imposing a 15% import tariff on most EU goods – half the threatened rate, a week after agreeing to a similar trade deal with Japan. Countries are scrambling to finalise trade deals ahead of an August 1 deadline set by US President Donald Trump, with talks between the US and China set for Monday in Stockholm amid expectations of another 90-day extension to the truce between the world's top two economies. 3 President Donald Trump (R) shakes hands with European Commission President Ursula von der Leyen (L) following their meeting, in Turnberry, south west Scotland on July 27, 2025. AFP via Getty Images 'A 15% tariff on European goods, forced purchases of US energy and military equipment and zero tariff retaliation by Europe, that's not negotiation, that's the art of the deal,' said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities. 'A big win for the US.' European futures surged more than 1%, while S&P 500 futures rose 0.5% and Nasdaq futures advanced 0.6%. The euro strengthened across the board, rising against the dollar, sterling and yen. 'We have to be a bit cautious from here,' said Sim Moh Siong, currency strategist at Bank of Singapore, of the broader risk-on rally. 'A lot of good news is already in the price.' MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.32%, just shy of the almost four-year high it touched last week. Japan's Nikkei fell 1% after hitting a one-year high last week. While the baseline 15% tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal, it is better than the threatened 30% rate. 3 Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between US dollar and South Korean won, right, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, July 28, 2025. AP The US-EU deal provides clarity to companies and averts a bigger trade war between the two allies that account for almost a third of global trade. 'A major tail-risk has now been defused,' said Marc Velan, head of investments at Lucerne Asset Management in Singapore. 'Markets are interpreting this as a sign of stability and predictability returning to trade policy,' he added. 'The China delay fits the same pattern: the administration is opting for controlled diplomacy over confrontation.' 3 The US struck a framework trade agreement with the European Union, imposing a 15% import tariff on most EU goods – half the threatened rate, a week after agreeing to a similar trade deal with Japan. AP Gains for China's blue-chip stocks petered out towards the midday break, while Hong Kong's Hang Seng index gained 0.5%. The Australian dollar , often seen as a proxy for risk appetite, was at $0.657, hovering around the near eight-month peak scaled last week. FED, BOJ AWAIT In an action-packed week, investors will watch out for the monetary policy meetings from the Fed and the BOJ as well as the monthly US employment report and earnings from megacap companies Apple, Microsoft and Amazon. While the Fed and the BOJ are expected to maintain rates, comments from the officials will be crucial for investors to gauge the interest rate path. The trade deal with Japan has opened the door for the BOJ to raise rates again this year. Meanwhile, the Fed is likely to be cautious on any rate cuts as officials seek more data to determine tariffs' impact on inflation before they ease rates further. But tensions between the White House and the central bank over monetary policy have increased, with Trump repeatedly lashing out at Fed Chair Jerome Powell for not cutting rates. Two of the Fed Board's Trump appointees have articulated reasons for supporting a rate cut this month. In commodities, oil prices rose after the US-EU trade agreement. Brent crude futures and US West Texas Intermediate crude both rose 0.5%. Gold prices fell on Monday to their lowest in nearly two weeks on reduced appetite for safe havens.
Entrepreneur
3 minutes ago
- Entrepreneur
Defence Tech Startup Ammunic Systems Bags USD 1.1 Mn Funding
The funding will be deployed to boost research and development, scale manufacturing, expand the team, and enhance new and existing product lines focused on indigenous defence technology. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Ammunic Systems has raised USD 1.1 million in a seed funding round co-led by India Accelerator and Finvolve. The funding will be deployed to boost research and development, scale manufacturing, expand the team, and enhance new and existing product lines focused on indigenous defence technology. The capital infusion is set to support Ammunic Systems' ambition of accelerating its innovation roadmap and advancing India's self-reliance in strategic defence solutions. With a strong emphasis on cutting-edge technologies, the startup is positioning itself as a key player in modern warfare systems. "This investment from India Accelerator is not just capital; it is a vote of confidence in a mission we have poured our hearts into. At Ammunic Systems, we are not just building defence technologies; we are building belief — that India can lead from the front in securing its own future," said Priyanka Singhal, Founder of Ammunic Systems. Founded in 2024, Ammunic Systems is headquartered in Bengaluru. The company specialises in the research and development of advanced weapon systems. Its core expertise lies in electronic fuzes, warheads, and munition integration technologies. These products aim to offer precision, safety, and efficiency for current and future defence needs. Ammunic Systems provides end-to-end solutions across the defence product cycle — from concept design and testing to full-scale production. The startup aspires to become a leading innovator in the defence and aerospace sector by focusing on indigenous manufacturing and next-generation technologies. The investment community views such ventures as crucial to reducing India's dependency on defence imports. "India is at a critical point in its defence evolution, which makes indigenous technological capabilities national priorities. Ammunic Systems exemplifies the deep-tech innovation needed to strengthen our defence ecosystem," said Ashish Bhatia, Founder of India Accelerator and Co-founder of Finvolve.
Bloomberg
4 minutes ago
- Bloomberg
Private Lender Flow Capital Partners Launches $125 Million Fund
Hong Kong-based credit manager Flow Capital Partners has launched a new fund with a broader Asia focus, people familiar with the matter said, adding to a list of private lenders expanding in the region. FCP has raised $125 million for its new Asia credit master fund, seeking to expand its focus from Hong Kong and China to other parts of Asia, according to the people.
