What Happened?
A number of stocks fell in the afternoon session after investors rotated out of AI-linked high-flyers following underwhelming earnings updates from Oracle and Broadcom as the core thesis shifted from "growth at any cost" to "prove the returns."
Oracle triggered the alarm by missing revenue estimates while simultaneously hiking capital expenditures by $15 billion. This reignited fears that AI infrastructure spending is outpacing actual monetization. Broadcom compounded the anxiety; despite beating earnings, its stock fell as CFO Kirsten Spears cautioned that gross margins may come under pressure as product mix shifts further toward system-level AI sales. This sparked a macro rotation away from AI infrastructure and power plays.
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:
- Digital Media & Content Platforms company Rumble (NASDAQ:RUM) fell 2.8%. Is now the time to buy Rumble? Access our full analysis report here, it’s free for active Edge members.
- Specialized Technology company Crane NXT (NYSE:CXT) fell 4.8%. Is now the time to buy Crane NXT? Access our full analysis report here, it’s free for active Edge members.
- Specialized Technology company Arlo Technologies (NYSE:ARLO) fell 3.7%. Is now the time to buy Arlo Technologies? Access our full analysis report here, it’s free for active Edge members.
- IT Distribution & Solutions company CDW (NASDAQ:CDW) fell 3.4%. Is now the time to buy CDW? Access our full analysis report here, it’s free for active Edge members.
- IT Distribution & Solutions company Insight Enterprises (NASDAQ:NSIT) fell 2.5%. Is now the time to buy Insight Enterprises? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Crane NXT (CXT)
Crane NXT’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 13.5% on the news that the company announced it expected its U.S. Currency business to grow in the high-single-digits in 2026.
This bright forecast was based on the Federal Reserve Board's recently published 2026 print order. The order showed a significant projected jump in banknote demand, with the volume of larger bills—like $10, $20, $50, and $100 notes—expected to increase by about 90% compared to 2025. This surge in demand for higher-value currency, which Crane NXT's technology supports, signaled a positive outlook for the company's sales. The company also noted its support for the U.S. Currency Program's key goals, which included the introduction of a new $10 banknote. Following the news, analysts at DA Davidson reiterated their "Buy" rating on the stock, reinforcing the positive investor sentiment.
Crane NXT is down 11.7% since the beginning of the year, and at $51.77 per share, it is trading 24.9% below its 52-week high of $68.91 from October 2025. Investors who bought $1,000 worth of Crane NXT’s shares at the IPO in March 2023 would now be looking at an investment worth $1,311.
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