Gartner's $1.1B Trading Volume Surges to 74th in Liquidity as Shares Plummet 27.55% on Revised Outlook

On August 5, 2025, Gartner (IT) traded with a daily volume of $1.1 billion, a 102.71% increase from the prior day, ranking 74th in market liquidity. The stock closed down 27.55%, reflecting heightened investor anxiety over its revised financial outlook.

Gartner revised its 2025 revenue forecast downward to at least $6.45 billion, a $100 million reduction from earlier guidance, citing weaker demand for its insights division amid corporate cost-cutting measures in an uncertain economic climate. Despite a 4.3% revenue increase in the second quarter and a $3.53 adjusted earnings per share that exceeded estimates, the bearish guidance overshadowed these results. Analysts highlighted that advancements in automation and AI are reducing reliance on external consulting services, further pressuring Gartner’s core business.

Government sector cost-cutting efforts have also impacted the firm. Recent contract cancellations, including those with Gartner, and a slowdown in federal procurement processes have raised concerns about long-term growth sustainability. The stock has declined 50.1% year-to-date, trading at $241.31, a 56.3% discount to its 52-week high. Technical indicators suggest oversold conditions, with an RSI of 25.23, though analysts caution that such signals should not be used in isolation for investment decisions.

Backtesting data reveals that a liquidity-focused strategy—purchasing the top 500 stocks by daily trading volume and holding for one day—generated a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18% return. This underscores the potential of high-volume stocks to capitalize on short-term market momentum, particularly in volatile conditions.