CDW Slips 0.67% Amid Sector Volatility, $180M Volume Ranks 497th in Daily Trading Activity

On August 29, 2025, CDW (NASDAQ:CDW) closed at $165.87, reflecting a 0.67% decline with a trading volume of $180 million, ranking 497th in market activity for the day. The stock, valued at $21.74 billion, has faced pressure amid sector-wide volatility linked to shifting trade policy expectations.

Artisan Mid Cap Value Fund’s Q2 2025 investor letter highlighted CDW as a strategic holding, emphasizing its role as a value-added IT solutions reseller. The fund noted that while cloud computing growth poses long-term disintermediation risks, CDW’s focus on small and medium businesses (SMBs) provides a competitive edge. SMBs often lack the resources to directly evaluate IT products, creating sustained demand for CDW’s services. The firm also acknowledged the company’s non-capital-intensive business model and consistent free cash flow generation, which support its resilience in cyclical markets.

Financial performance in Q2 2025 showed consolidated net sales of $6 billion, a 10% year-over-year increase. However, the fund highlighted challenges such as the broader IT reseller sector’s underperformance in early 2025 and concerns over cloud vendors bypassing traditional distribution channels. Despite these headwinds, Artisan expressed confidence in CDW’s ability to consolidate market share in the fragmented VAR sector, projecting mid- to high-single-digit growth over the long term.

Backtested data from the second quarter indicates CDW’s stock experienced a 25.66% decline over 52 weeks, with a one-month return of -4.88%. The fund attributed the decline to market favoritism toward growth stocks and cyclical sectors, but noted the sharp selloff created a buying opportunity. Strategic purchases of CDW and other positions were made in April 2025, reflecting increased portfolio activity compared to the prior quarter.