What Happened?
A number of stocks fell in the afternoon session after the combination of rising oil prices, higher Treasury yields, and shifting rate expectations tightened the macro backdrop for corporate clients. S
ADP's May payroll print (122,000 jobs added, above the 110,000 consensus) confirmed the labor market remains firm, but the data also pushed rate hike expectations higher, reducing the likelihood of the relief companies had been anticipating.
Adding to the weakness, GitLab announced it would cut approximately 14% of its workforce and exit 22 countries, signaling that enterprise clients continue to manage costs tightly even amid a broader market recovery. In a sector where spending depends on corporate confidence, higher-for-longer rates and geopolitical uncertainty are a direct headwind.
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:
- Terrestrial Telecommunication Services company Cogent (NASDAQ: CCOI) fell 5.2%. Is now the time to buy Cogent? Access our full analysis report here, it’s free.
- Terrestrial Telecommunication Services company Lumen (NYSE: LUMN) fell 5.2%. Is now the time to buy Lumen? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company Rumble (NASDAQ: RUM) fell 5.3%. Is now the time to buy Rumble? Access our full analysis report here, it’s free.
Zooming In On Rumble (RUM)
Rumble’s shares are extremely volatile and have had 50 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 8 days ago when the stock gained 8.3% on the news that Iran-US peace deal progress and falling Treasury yields restored corporate confidence.
This could serve as a catalyst for CFOs to greenlight the consulting, staffing, and outsourcing contracts they had paused during the conflict. Business services companies make money on "white collar GDP." So when the macro picture improves, project backlogs unfreeze, and the firms that execute them get paid.
Rumble is up 32.4% since the beginning of the year, but at $8.44 per share, it is still trading 15.8% below its 52-week high of $10.02 from July 2025. Despite the year-to-date gain, investors who bought $1,000 worth of Rumble’s shares 5 years ago would now be looking at only $865.13.
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