What Happened?
Shares of online insurance comparison site EverQuote (NASDAQ:EVER) jumped 4.9% in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
The shares closed the day at $24.49, up 4.7% from previous close.
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What Is The Market Telling Us
EverQuote’s shares are very volatile and have had 25 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 17 days ago when the stock gained 11.4% on the news that the company reported strong third-quarter financial results that surpassed analyst expectations for both revenue and earnings. The online insurance marketplace announced quarterly revenue of $173.9 million, a 20.3% increase year-over-year that beat analyst estimates. Earnings per share also impressed, coming in at $0.50, which was significantly higher than the consensus forecast of $0.38. Adding to the positive sentiment, the company provided an optimistic outlook for the fourth quarter, guiding for revenue of $177 million at the midpoint, which was well above what analysts were expecting.
EverQuote is up 20.9% since the beginning of the year, but at $24.49 per share, it is still trading 17.6% below its 52-week high of $29.71 from March 2025. Investors who bought $1,000 worth of EverQuote’s shares 5 years ago would now be looking at an investment worth $589.86.
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