What Happened?

A number of stocks jumped in the afternoon session after strong Prime Day sales data and falling Treasury yields boosted sentiment for digital platforms. 

Alphabet rose 1% (aided by its upcoming Dow inclusion), while peers like Meta and Pinterest found support despite the broader Nasdaq's 0.4% decline. U.S. online sales hit $8.3 billion, up 5.3% year-over-year, while the 10-year Treasury yield fell below 4.5%. 

Consumer internet companies, particularly those reliant on digital advertising, need healthy consumer spending to justify ad budgets. The record $8.3 billion in Prime Day sales signals that consumer demand remains robust, which in turn gives advertisers the confidence to keep spending on platforms like Google and Meta. Additionally, falling yields lower the discount rate applied to these companies' future cash flows, supporting their multiples.

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:

• Financial Technology company Remitly (NASDAQ: RELY) jumped 4.7%. Is now the time to buy Remitly? Access our full analysis report here, it’s free.
• Gig Economy company Angi (NASDAQ: ANGI) jumped 9.2%. Is now the time to buy Angi? Access our full analysis report here, it’s free.
• Gig Economy company Fiverr (NYSE: FVRR) jumped 4.6%. Is now the time to buy Fiverr? Access our full analysis report here, it’s free.

Zooming In On Angi (ANGI)

Angi’s shares are extremely volatile and have had 34 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 19 days ago when the stock dropped 3.8% on the news that the strong payroll print (172,000, more than double the 80,000 consensus) confirmed the higher-for-longer narrative and sent the 10-year yield above 4.5%, compressing valuations across high-multiple digital platforms. 

CME FedWatch shifted to price rate hike risk by year end (the first time this cycle) changing the directional signal investors had been using to justify premium multiples for growth-oriented internet businesses. The pressure was valuation-driven rather than earnings-driven. 

Digital advertising, subscription, and platform business models remain structurally intact, but when the risk-free rate moves materially higher, the long-duration cash flows embedded in internet stock valuations are discounted more aggressively. The jobs report added a secondary consumer demand concern: higher rates mean tighter consumer credit and less discretionary spending on subscriptions and digital services, the revenue base on which these multiples rest.

Angi is down 58.3% since the beginning of the year, and at $5.28 per share, it is trading 72.1% below its 52-week high of $18.90 from August 2025. Investors who bought $1,000 worth of Angi’s shares 5 years ago would now be looking at only $38.00.

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