What Happened?
Shares of diabetes technology company Tandem Diabetes Care (NASDAQ: TNDM) jumped 5.4% in the morning session after the stock appeared to rebound from a recent 52-week low as investors looked ahead to its upcoming quarterly earnings report. The upward movement followed the stock hitting a 52-week low just ten days prior, a level that may have attracted investors looking for a potential bargain. Market participants were also likely positioning themselves ahead of Tandem's second-quarter 2025 financial results, which the company had announced would be released on August 6. The move occurred amidst mixed signals from financial analysts in the preceding weeks. For instance, Canaccord Genuity had raised its price target, citing strong performance, while Citi had downgraded the stock due to competitive concerns.
Is now the time to buy Tandem Diabetes? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Tandem Diabetes’s shares are extremely volatile and have had 32 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 5 days ago when the stock gained 4.9% on the news that a new trade agreement between the United States and Japan spurred a broad market rally. The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.
Tandem Diabetes is down 53.1% since the beginning of the year, and at $16.81 per share, it is trading 63.2% below its 52-week high of $45.71 from August 2024. Investors who bought $1,000 worth of Tandem Diabetes’s shares 5 years ago would now be looking at an investment worth $170.19.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
