What Happened?
Shares of diabetes technology company Tandem Diabetes Care (NASDAQ: TNDM) jumped 1.6% in the afternoon session after the company announced a positive update on a clinical study for its Control-IQ system. The study, conducted in France, aimed to assess the real-world safety, performance, and quality of life benefits for individuals with Type 1 Diabetes using the system. Positive findings from such studies could increase confidence in the product's effectiveness. The move also occurred amid a favorable long-term view of the industry, with a report projecting the U.S. insulin pump market would grow to $2.58 billion by 2033, driven by rising diabetes rates and new technology. This backdrop of potential growth came even as the company faced challenges, having recently reported a revenue increase of 8.5% year-over-year but missing earnings per share estimates.
After the initial pop the shares cooled down to $15.16, up 1.5% from previous close.
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What Is The Market Telling Us
Tandem Diabetes’s shares are extremely volatile and have had 40 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 18 days ago when the stock dropped 6.8% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
Tandem Diabetes is down 57.7% since the beginning of the year, and at $15.16 per share, it is trading 59.6% below its 52-week high of $37.53 from January 2025. Investors who bought $1,000 worth of Tandem Diabetes’s shares 5 years ago would now be looking at an investment worth $134.98.
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