What Happened?
A number of stocks fell in the afternoon session after President Trump threatened to increase import taxes on Chinese goods, reigniting trade war fears.
The threat was in response to China's move to restrict its exports of rare earth minerals, which are critical to high-tech manufacturing in the U.S. The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-heavy Nasdaq Composite fell 2.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies.
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:
- Video Conferencing company Zoom (NASDAQ: ZM) fell 3.1%. Is now the time to buy Zoom? Access our full analysis report here, it’s free for active Edge members.
- Data Storage company Commvault (NASDAQ: CVLT) fell 3.5%. Is now the time to buy Commvault? Access our full analysis report here, it’s free for active Edge members.
- Document Management company Dropbox (NASDAQ: DBX) fell 3.3%. Is now the time to buy Dropbox? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Commvault (CVLT)
Commvault’s shares are very volatile and have had 20 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 2 days ago when the stock gained 5.6% on the news that Truist Securities initiated coverage on the data protection company's stock with a 'Buy' rating and set a price target of $230. The research firm noted Commvault's strong position to benefit from the growing importance of data security, viewing it as a critical part of cybersecurity amid increasing ransomware attacks. The price target suggested significant upside from its previous trading price.
Commvault is up 12.1% since the beginning of the year, but at $170.50 per share, it is still trading 12.8% below its 52-week high of $195.41 from September 2025. Investors who bought $1,000 worth of Commvault’s shares 5 years ago would now be looking at an investment worth $3,826.
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