What Happened?
Shares of data center products and services company Vertiv (NYSE: VRT) fell 5.2% in the morning session after it gave back some of the strong gains it made after reporting impressive third-quarter results.
The company recently announced third-quarter revenue of $2.68 billion and adjusted earnings of $1.24 per share, beating Wall Street's expectations on both fronts. Following the strong print, Vertiv also raised its full-year guidance for adjusted earnings per share to a midpoint of $4.10. While the positive report initially sent the stock higher, it appears some investors are now taking profits after the recent rally.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Vertiv? Access our full analysis report here.
What Is The Market Telling Us
Vertiv’s shares are extremely volatile and have had 46 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 gained 3.2% on the news that several analysts raised their price targets on the stock amid news of new partnerships to expand its artificial intelligence (AI) data center solutions globally. J.P. Morgan increased its price target to $206 while maintaining an "Overweight" rating, and Deutsche Bank lifted its target to $216, keeping its "Buy" rating. This optimism was linked to Vertiv's key role in providing critical digital infrastructure for the buildout of AI.
Vertiv is up 44.4% since the beginning of the year, and at $170.82 per share, it is trading close to its 52-week high of $180.51 from October 2025. Investors who bought $1,000 worth of Vertiv’s shares 5 years ago would now be looking at an investment worth $8,967.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
