What Happened?

A number of stocks jumped in the afternoon session after President Donald Trump eased concerns over escalating trade tensions with China, calming markets rattled by his earlier tariff threats. 

U.S. stocks rose sharply, with the Nasdaq-100 jumping nearly 2%, following a post on Truth Social where Trump suggested the trade conflict would not worsen. This shift in tone provided significant relief to investors, who had driven a sharp sell-off the previous Friday due to fears of higher tariffs. Technology companies with significant international supply chains and sales, such as AMD and Nvidia, led the market rally, with their shares climbing 4.2% and 3.4%, respectively. The broader market indexes, including the S&P 500 and the Dow Jones Industrial Average, also saw substantial gains, reflecting widespread optimism that a potentially damaging trade war might be averted.

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:

• Sales Software company ZoomInfo (NASDAQ: GTM) jumped 2.7%. Is now the time to buy ZoomInfo? Access our full analysis report here, it’s free for active Edge members.
• Lending Software company Upstart (NASDAQ: UPST) jumped 2.8%. Is now the time to buy Upstart? Access our full analysis report here, it’s free for active Edge members.
• Content Delivery company F5 (NASDAQ: FFIV) jumped 2.6%. Is now the time to buy F5? Access our full analysis report here, it’s free for active Edge members.
• Design Software company Procore Technologies (NYSE: PCOR) jumped 2.7%. Is now the time to buy Procore Technologies? Access our full analysis report here, it’s free for active Edge members.
• Healthcare And Life Sciences Software company Doximity (NYSE: DOCS) jumped 3.8%. Is now the time to buy Doximity? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Doximity (DOCS)

Doximity’s shares are very volatile and have had 28 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 3 days ago when the stock dropped 6.7% on the news that JP Morgan downgraded the stock to 'Underweight' from 'Neutral', citing concerns about its high valuation and uncertainty in advertising trends. The bank noted that there was limited visibility on digital pharma advertising. Furthermore, JPMorgan pointed out that Doximity traded at a steep premium compared to its peers. While acknowledging that the company's financial profile warranted some premium, the firm highlighted that its enterprise value was 36 times a future earnings measure (EBITDA), well above the 23 times median for similar companies. The brokerage maintained its price target of $62 on the shares.

Doximity is up 26% since the beginning of the year, but at $67.50 per share, it is still trading 18.8% below its 52-week high of $83.14 from February 2025. Investors who bought $1,000 worth of Doximity’s shares at the IPO in June 2021 would now be looking at an investment worth $1,274.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.