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Etsy, Snap, The RealReal, Instacart, and Teladoc Shares Skyrocket, What You Need To Know

via StockStory

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What Happened?

A number of stocks jumped in the afternoon session after the technology sector climbed as an OpenAI share sale catapulted the firm to the world's most valuable startup, bolstering optimism for artificial intelligence. 

The Nasdaq 100 and S&P 500 benchmarks both reached new records, powered by gains in tech giants and AI-related companies like Nvidia, Microsoft, Alphabet, and Broadcom. Investors are increasingly viewing AI as a significant long-term growth driver, a sentiment strong enough to overshadow concerns from a U.S. government shutdown. This continued enthusiasm highlights the market's strong belief in the transformative potential of artificial intelligence, which is propelling major indices to unprecedented heights.

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:

Zooming In On Teladoc (TDOC)

Teladoc’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 2 days ago when the stock dropped 5.5% on the news that a steeper-than-anticipated drop in U.S. consumer confidence raised alarms about future consumer spending. 

The Conference Board reported its consumer confidence index fell to 94.2 in September, its lowest reading since April. The decline was attributed to growing pessimism among Americans regarding inflation and a weakening job market. This data is particularly concerning for companies reliant on discretionary spending, such as those in online retail, travel, and the gig economy, as reports suggest a bleak consumer outlook could curb spending on non-essential items and services. The survey's Expectations Index, a measure of short-term outlook, has remained below a key threshold that often signals a future recession, adding to investor concerns about the economic landscape.

Teladoc is down 11.3% since the beginning of the year, and at $8.45 per share, it is trading 41.1% below its 52-week high of $14.33 from February 2025. Investors who bought $1,000 worth of Teladoc’s shares 5 years ago would now be looking at an investment worth $38.11.

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