What Happened?
A number of stocks jumped in the afternoon session after the Bureau of Economic Analysis reported a 0.9% increase in personal consumption expenditures for August, signaling resilient consumer demand alongside steady economic expansion.
The latest report from the U.S. Bureau of Economic Analysis showed that consumer outlays advanced strongly despite a modest 0.2% uptick in personal income. Underlying inflation trends also remained relatively subdued, with the core Personal Consumption Expenditures price index—a key inflation gauge watched closely by policymakers—increasing 0.2% month-over-month. Supporting the positive economic picture, the third estimate of second-quarter gross domestic product confirmed the economy expanded at an annualized rate of 2.2%.
Together, these indicators suggest that households continue to spend at a healthy pace, alleviating concerns over an impending consumer slowdown and bolstering market confidence across retail and consumer sectors.
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:
- Automation Software company UiPath (NYSE: PATH) jumped 4.5%. Is now the time to buy UiPath? Access our full analysis report here, it’s free.
- Project Management Software company monday.com (NASDAQ: MNDY) jumped 3.9%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
- Data Analytics company Amplitude (NASDAQ: AMPL) jumped 4.2%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free.
- Healthcare And Life Sciences Software company Doximity (NYSE: DOCS) jumped 5.5%. Is now the time to buy Doximity? Access our full analysis report here, it’s free.
- Customer Experience Software company Sprinklr (NYSE: CXM) jumped 2.9%. Is now the time to buy Sprinklr? Access our full analysis report here, it’s free.
Zooming In On Doximity (DOCS)
Doximity’s shares are very volatile and have had 24 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 5 months ago when the stock dropped 25.9% on the news that the company reported underwhelming first quarter results: its revenue guidance for next year revealed a significant slowdown in demand and its full-year revenue guidance fell short of Wall Street's estimates. Management noted that Pharma marketing budgets were being committed in shorter-duration tranches and the new AI search revenue won't meaningfully ramp until the second half of the fiscal year. On the other hand, Doximity blew past analysts' billings expectations and its EBITDA outperformed Wall Street's estimates. Still, this was a weaker quarter.
Doximity is down 35.3% since the beginning of the year, and at $28.02 per share, it is trading 61.9% below its 52-week high of $73.53 from October 2025. Investors who bought $1,000 worth of Doximity’s shares 5 years ago would now be looking at only $347.26.
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