What Happened?

A number of stocks fell in the afternoon session after the broader U.S. stock market declined amid investor caution and a pullback in technology stocks. The main story? Investors are cashing in on a good run and feeling a bit cautious. 

After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains. This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced. 

There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.

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 Coinbase (NASDAQ: COIN) fell 6.6%. Is now the time to buy Coinbase? Access our full analysis report here, it’s free for active Edge members.
• Online Marketplace company eHealth (NASDAQ: EHTH) fell 7.6%. Is now the time to buy eHealth? Access our full analysis report here, it’s free for active Edge members.
• Online Retail company Carvana (NYSE: CVNA) fell 3.7%. Is now the time to buy Carvana? Access our full analysis report here, it’s free for active Edge members.
• Video Gaming company Skillz (NYSE: SKLZ) fell 3.9%. Is now the time to buy Skillz? Access our full analysis report here, it’s free for active Edge members.
• Online Marketplace company LegalZoom (NASDAQ: LZ) fell 3.4%. Is now the time to buy LegalZoom? Access our full analysis report here, it’s free for active Edge members.

Zooming In On eHealth (EHTH)

eHealth’s shares are extremely volatile and have had 59 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 7 days ago when the stock dropped 15.3% on the news that the company's third-quarter 2025 earnings report revealed a drop in membership and a year-over-year decline in revenue. Although revenue of $53.9 million topped analysts' expectations, it marked a nearly 8% decrease from the same period last year. The company posted a GAAP loss of $1.46 per share, which was narrower than analysts had feared. However, a key point of concern for investors was the drop in its user base, with estimated membership falling by about 40,900 from the prior year. Despite beating some forecasts, the combination of falling sales, a net loss, and a shrinking customer base appeared to outweigh the positives for investors, leading to the sharp sell-off.

eHealth is down 55.2% since the beginning of the year, and at $4.00 per share, it is trading 64.1% below its 52-week high of $11.14 from February 2025. Investors who bought $1,000 worth of eHealth’s shares 5 years ago would now be looking at an investment worth $56.07.

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