What Happened?
A number of stocks fell in the afternoon session after the Bureau of Labor Statistics revealed that the economy added significantly fewer jobs than previously reported over the last year.
The U.S. Bureau of Labor Statistics (BLS) issued a preliminary benchmark revision indicating that nonfarm employment was overstated by 911,000 jobs for the 12 months ending in March 2025. This routine but significant adjustment suggests the labor market has been considerably weaker than initial monthly reports suggested. Such a large downward revision can be a key indicator of a cooling economy. For investors, this news is mixed; while a slowdown could prompt the Federal Reserve to consider interest rate cuts, it also heightens concerns about a potential recession. The report noted that the professional and business services and manufacturing sectors saw notable downward revisions, signaling specific areas of weakness.
JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
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:
- Advertising & Marketing Services company Ibotta (NYSE: IBTA) fell 5.5%. Is now the time to buy Ibotta? Access our full analysis report here, it’s free.
- Satellite Telecommunication Services company Iridium (NASDAQ: IRDM) fell 9.2%. Is now the time to buy Iridium? Access our full analysis report here, it’s free.
Zooming In On Iridium (IRDM)
Iridium’s shares are quite volatile and have had 16 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 about 24 hours ago when the stock dropped 11.8% as reports revealed heightened competition in the satellite communications sector. Elon Musk's Starlink is reportedly preparing for its entry into the Indian market by deploying ground infrastructure ahead of a commercial launch, with an estimated initial capital outlay of Rs 5 billion. This move signifies a major new competitor in a key global market.
Adding to the competitive pressures, Thales Alenia Space, in partnership with Capgemini and Thales, was selected by the French Space Agency to lead a demonstration of 5G direct-to-device (D2D) connectivity. This project aims to show the feasibility of direct communication between satellites and mobile devices, representing another technological advancement that could disrupt the existing satellite communications landscape. These developments suggest a more crowded and competitive future, likely weighing on investor sentiment for established players like Iridium.
Iridium is down 34.9% since the beginning of the year, and at $19.24 per share, it is trading 42.7% below its 52-week high of $33.57 from October 2024. Investors who bought $1,000 worth of Iridium’s shares 5 years ago would now be looking at an investment worth $675.09.
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