What Happened?
A number of stocks fell in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty.
The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
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:
- Consumer Discretionary - Broadcasting company AMC Networks (NASDAQ: AMCX) fell 5.4%. Is now the time to buy AMC Networks? Access our full analysis report here, it’s free.
- Consumer Discretionary - Footwear company Crocs (NASDAQ: CROX) fell 2.1%. Is now the time to buy Crocs? Access our full analysis report here, it’s free.
- Consumer Discretionary - Leisure Facilities company Xponential Fitness (NYSE: XPOF) fell 2.4%. Is now the time to buy Xponential Fitness? Access our full analysis report here, it’s free.
- Consumer Discretionary - Leisure Products company Smith & Wesson (NASDAQ: SWBI) fell 3.6%. Is now the time to buy Smith & Wesson? Access our full analysis report here, it’s free.
- Consumer Discretionary - Casino Operator company Flutter Entertainment (NYSE: FLUT) fell 4.4%. Is now the time to buy Flutter Entertainment? Access our full analysis report here, it’s free.
Zooming In On AMC Networks (AMCX)
AMC Networks’s shares are very volatile and have had 25 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 7 months ago when the stock gained 19% on the news that the company reported second-quarter financial results that surpassed Wall Street expectations for both revenue and earnings.
The company reported second-quarter revenue of $600 million and adjusted earnings of $0.69 per share, beating analyst forecasts of $586 million and $0.54 per share, respectively. This positive surprise came despite a 4.1% year-over-year decline in total sales, highlighting strength in other areas of the business. The main drivers for the quarter were a 12% increase in streaming revenue, which rose to $169 million, and robust performance in content licensing. Adding to investor optimism, AMC Networks raised its full-year free cash flow outlook to approximately $250 million. The strong results in streaming and the improved cash flow guidance signal progress in the company's strategy, overshadowing declines in traditional advertising revenue.
AMC Networks is down 15% since the beginning of the year, and at $7.86 per share, it is trading 21.5% below its 52-week high of $10.01 from December 2025. Investors who bought $1,000 worth of AMC Networks’s shares 5 years ago would now be looking at an investment worth $151.39.
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