What Happened?
A number of stocks jumped in the afternoon session after sentiment improved following significant moves from heavyweights like Meta Platforms, which extended its partnership with Broadcom to deploy custom AI chips.
Additionally, reports of Amazon's plans to acquire Globalstar to boost its satellite business provided a strong bullish signal for the industry's continued expansion. Internet companies benefit from the massive, ongoing scale-up of AI-driven infrastructure, which enhances their ability to monetize user data and optimize advertising platforms. In a "risk-on" market, these growth stocks attract capital as investors prioritize companies with deep technological moats and the ability to scale globally through digital ecosystems.
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 Subscription company Chegg (NYSE: CHGG) jumped 2.4%. Is now the time to buy Chegg? Access our full analysis report here, it’s free.
- Online Marketplace company LegalZoom (NASDAQ: LZ) jumped 4.3%. Is now the time to buy LegalZoom? Access our full analysis report here, it’s free.
Zooming In On LegalZoom (LZ)
LegalZoom’s shares are quite volatile and have had 17 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 22 days ago when the stock dropped 5.4% on the news that Barclays downgraded the company's stock to "Underweight" from "Equalweight."
The investment bank cited concerns over the company's limited addressable market size when compared to other sectors. This downgrade added to the pressures on the company, as the stock reached a new 52-week low during the session. The move was part of a broader downturn for LegalZoom, which had seen its stock decline significantly over the previous year, highlighting ongoing market challenges.
LegalZoom is down 35.2% since the beginning of the year, and at $6.22 per share, it is trading 44.4% below its 52-week high of $11.18 from August 2025. Investors who bought $1,000 worth of LegalZoom’s shares at the IPO in June 2021 would now be looking at an investment worth $164.20.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
