What Happened?
A number of stocks jumped in the morning session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Casino Operator company Bally's (NYSE: BALY) jumped 8.9%. Is now the time to buy Bally's? Access our full analysis report here, it’s free.
- Footwear Retailer company Designer Brands (NYSE: DBI) jumped 7.9%. Is now the time to buy Designer Brands? Access our full analysis report here, it’s free.
- Apparel and Accessories company Stitch Fix (NASDAQ: SFIX) jumped 5.8%. Is now the time to buy Stitch Fix? Access our full analysis report here, it’s free.
- Personal Care company Olaplex (NASDAQ: OLPX) jumped 5.1%. Is now the time to buy Olaplex? Access our full analysis report here, it’s free.
- Renewable Energy company Sunrun (NASDAQ: RUN) jumped 6.1%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.
Zooming In On Bally's (BALY)
Bally’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 biggest move we wrote about over the last year was 10 months ago when the stock gained 24.6% after the company announced it has that it agreed to be acquired by Standard General L.P (the company's largest shareholder). According to the press release, Standard General will acquire shares of Baly's it doesn't already own for $18.25/share. This price represents a 71% premium over BALY's 30-day volume-weighted average price per share as of March 8, implying an enterprise value of $4.6 billion.
Bally's is down 41.3% since the beginning of the year, and at $11.41 per share, it is trading 48.3% below its 52-week high of $22.07 from November 2024.
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