What Happened?
Shares of digital engineering services company EPAM Systems (NYSE:EPAM) jumped 3% in the afternoon session after the company announced the availability of seven new, high-impact AI agents on Google Cloud Marketplace. These solutions were designed to address complex challenges in sectors like finance, healthcare, and retail. The ready-to-use agents aimed to help clients with tasks such as automating Know Your Customer (KYC) processes, speeding up drug discovery, and streamlining clinical trial document creation. By offering these production-ready and secure tools, EPAM enabled clients to quickly adopt trusted technology. The collaboration was highlighted by Google Cloud's Managing Director, who noted that the partnership would help customers deploy and manage the advanced AI agents on Google's global infrastructure.
After the initial pop the shares cooled down to $209.39, up 2.8% from previous close.
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What Is The Market Telling Us
EPAM’s shares are somewhat volatile and have had 13 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 biggest move we wrote about over the last year was about 2 months ago when the stock gained 8% on the news that the company announced a new stock repurchase program of up to $1 billion. The company's Board of Directors authorized the program, which will have a term of 24 months. Stock buybacks are often viewed positively by investors because they reduce the number of shares outstanding, which can increase earnings per share. This move signaled management's confidence in the company's financial health and future prospects. The company’s CFO, Jason Peterson, added that they “remain confident in the underlying strength of our business reflected by three quarters of improving year-over-year organic constant currency revenue growth.” The repurchases may occur through open market or private transactions.
EPAM is down 8.6% since the beginning of the year, and at $209.39 per share, it is trading 21.8% below its 52-week high of $267.63 from February 2025. Investors who bought $1,000 worth of EPAM’s shares 5 years ago would now be looking at an investment worth $653.17.
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