What Happened?
A number of stocks jumped in the afternoon session after renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday.
The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
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:
- Online Marketplace company Teladoc (NYSE: TDOC) jumped 4%. Is now the time to buy Teladoc? Access our full analysis report here, it’s free for active Edge members.
- Gig Economy company Angi (NASDAQ: ANGI) jumped 3.6%. Is now the time to buy Angi? Access our full analysis report here, it’s free for active Edge members.
- Gig Economy company Upwork (NASDAQ: UPWK) jumped 3.6%. Is now the time to buy Upwork? Access our full analysis report here, it’s free for active Edge members.
- Online Marketplace company ACV Auctions (NYSE: ACVA) jumped 4.3%. Is now the time to buy ACV Auctions? Access our full analysis report here, it’s free for active Edge members.
Zooming In On ACV Auctions (ACVA)
ACV Auctions’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 previous big move we wrote about was 7 days ago when the stock gained 5.1% on the news that a director, Brian Hirsch, reported a significant open-market purchase of company stock. According to a regulatory filing, Hirsch acquired 80,571 shares of Class A common stock at a weighted average price of $6.21 per share. Such a substantial investment by a key insider was often interpreted by the market as a strong vote of confidence in the company's future prospects and current valuation. This type of insider activity frequently led to increased investor optimism, as it suggested that those with intimate knowledge of the business believed the stock was undervalued.
ACV Auctions is down 65.8% since the beginning of the year, and at $7.16 per share, it is trading 69.1% below its 52-week high of $23.17 from December 2024. Investors who bought $1,000 worth of ACV Auctions’s shares at the IPO in March 2021 would now be looking at an investment worth $229.12.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report.
