What Happened?
A number of stocks fell in the afternoon session after the broader U.S. stock market declined amid investor caution and a pullback in technology stocks.
The main story? Investors are cashing in on a good run and feeling a bit cautious. After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains. This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced.
There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.
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:
- Media company fuboTV (NYSE:FUBO) fell 5.5%. Is now the time to buy fuboTV? Access our full analysis report here, it’s free for active Edge members.
- Toys and Electronics company Funko (NASDAQ:FNKO) fell 5%. Is now the time to buy Funko? Access our full analysis report here, it’s free for active Edge members.
- Specialized Consumer Services company 1-800-FLOWERS (NASDAQ:FLWS) fell 6.9%. Is now the time to buy 1-800-FLOWERS? Access our full analysis report here, it’s free for active Edge members.
- Apparel and Accessories company Tapestry (NYSE:TPR) fell 3.4%. Is now the time to buy Tapestry? Access our full analysis report here, it’s free for active Edge members.
- Wireless, Cable and Satellite company Cable One (NYSE:CABO) fell 3%. Is now the time to buy Cable One? Access our full analysis report here, it’s free for active Edge members.
Zooming In On 1-800-FLOWERS (FLWS)
1-800-FLOWERS’s shares are extremely volatile and have had 42 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 14 days ago when the stock gained 6.7% on the news that it reported results for its third calendar quarter of 2025, which included a forward-looking savings plan that investors appeared to focus on.
The gift retailer's revenue fell 11.1% year-on-year to $215.2 million, falling short of analyst forecasts. The company's adjusted loss per share also widened to $0.83, which was a deeper loss than Wall Street had expected. Despite these results, the positive stock reaction suggested investors were encouraged by the company's future strategy. 1-800-Flowers announced it planned to achieve an additional $50 million in gross savings over the next two years. The company's CEO noted that the current fiscal year marked a 'pivotal year of stabilization' aimed at laying the foundation for long-term growth.
1-800-FLOWERS is down 61.7% since the beginning of the year, and at $3.00 per share, it is trading 67.1% below its 52-week high of $9.09 from February 2025. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at an investment worth $137.89.
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