What Happened?
Shares of data collaboration platform LiveRamp (NYSE: RAMP) jumped 3% in the afternoon session after the stock rose along with the broader market as Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut. The move came as the broader market surged following comments from Federal Reserve Chair Jerome Powell at the annual policy symposium in Jackson Hole, Wyoming. Powell signaled a potential shift in monetary policy, stating that current risk conditions "may warrant adjusting our policy stance," sparking hopes for an interest rate cut. This positive macroeconomic news fueled a significant rally across major indexes, including the Dow Jones, S&P 500, and the tech-heavy Nasdaq.
After the initial pop the shares cooled down to $27.84, up 3.5% from previous close.
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What Is The Market Telling Us
LiveRamp’s shares are somewhat volatile and have had 11 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 8 days ago when the stock dropped 3.1% on the news that markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut. The U.S. Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.9% month-over-month in July, far exceeding the 0.2% increase that economists had predicted. Annually, prices at the wholesale level jumped 3.3%, also surpassing the 2.5% forecast. This hotter-than-expected data has poured cold water on widespread expectations for an interest rate cut from the Federal Reserve next month. Persistent inflation makes it less likely for the central bank to ease monetary policy. Sectors with high-growth stocks, such as SaaS, are particularly sensitive to interest rate changes, as the prospect of higher rates for longer can diminish the present value of their future earnings, leading to a decline in stock prices.
LiveRamp is down 8% since the beginning of the year, and at $27.84 per share, it is trading 21.8% below its 52-week high of $35.61 from February 2025. Investors who bought $1,000 worth of LiveRamp’s shares 5 years ago would now be looking at an investment worth $541.63.
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