Is Another Rally in Sight? Gartner’s 60% Drop from All-Time Highs Raises Questions About Wave C’s Arrival During Market Correction

Gartner Plummets 60% After Predicted Collapse – Is the Fall Over?

New York, NY – Shares of Gartner (NYSE: IT) have experienced a dramatic 60% crash in just six months, plummeting from a February 2025 high of $584 to a recent low of $231. This meaningful downturn was predicted over a year ago by analysts utilizing Elliott Wave theory,a technical analysis method focusing on predictable wave patterns in financial markets.

The analysis, originally published in July 2024, identified a completed five-wave impulse pattern signaling an impending three-wave correction. The report cautioned investors to begin taking profits even as the stock approached $500, forecasting a potential 50% decline to around $250. That prediction has proven remarkably accurate.

“We saw the writing on the wall,” explains a recent analysis from EWM Interactive, the firm that initially flagged the potential collapse. “The completion of the five-wave structure strongly suggested a reversal was imminent.”

Despite the steep decline, Gartner remains a substantial company with a market capitalization of $18.5 billion. management projects $1.15 billion in free cash flow for the current year. Though, analysts are questioning the stock’s valuation, citing a price-to-free cash flow (P/FCF) ratio of 16, which they deem expensive given the company’s projected 2.8% sales growth for 2025.

Looking Ahead: Is This a Temporary Dip or the Start of a Larger Trend?

Analysts believe the current drop may represent only the first phase – wave (a) – of a larger zigzag correction. This suggests further volatility is likely, with potential for a temporary rally (wave (b)) before another decline (wave (c)) pushes the stock to new lows. Support levels around the previous wave (4) low could offer temporary respite, but a sustained recovery remains uncertain.

Understanding Elliott Wave Theory: A Primer

Elliott Wave theory, developed by Ralph Nelson Elliott in the 1930s, posits that market prices move in specific patterns called “waves.” These patterns reflect the collective psychology of investors,oscillating between optimism and pessimism.

Impulse Waves: These five-wave patterns move with the main trend.
Corrective Waves: These three-wave patterns move against the main trend,offering opportunities for contrarian investors.

While not foolproof,Elliott Wave analysis provides a framework for identifying potential turning points in the market and understanding the underlying forces driving price movements. It’s a tool often used in conjunction with other forms of technical and fundamental analysis.

The Broader Implications for Tech Stocks

Gartner’s dramatic fall serves as a stark reminder that even established companies are not immune to market corrections. Investors should remain vigilant, diversify their portfolios, and carefully assess the valuations of growth stocks, particularly in a slowing economic environment. The case of Gartner highlights the importance of not solely relying on past performance and considering a range of analytical perspectives when making investment decisions.

could the current market conditions and tech sector underperformance accelerate the potential “Wave C” decline for gartner, or might unique company fundamentals offer resilience?

The recent performance of gartner (NYSE: IT), a leading global provider of market data and insights – as recognized by sources like Zhihu [https://www.zhihu.com/question/263565524] – has sparked considerable debate among investors. A meaningful 60% decline from its all-time highs is prompting analysts and traders to question whether this represents a buying possibility, a continuation of the broader market correction, or the beginning of a potential “Wave C” downswing in Elliott Wave theory. This article dives deep into the factors influencing Gartner’s stock, the current market landscape, and potential scenarios for investors.

Understanding Gartner’s Recent Downturn: Key Drivers

Several factors have contributed to Gartner’s substantial price correction. while the company remains a world authority in market data – particularly within the pharmaceutical and healthcare sectors – broader economic headwinds and company-specific challenges are at play.

Macroeconomic Concerns: Rising interest rates, persistent inflation, and fears of a recession have dampened investor sentiment across the technology sector.Gartner, while providing essential services, isn’t immune to these pressures.

Slowing IT Spending: Gartner itself forecasts a slowdown in IT spending growth. This creates a degree of self-referential pressure, as reduced client investment impacts their revenue projections.

Competitive Landscape: The market intelligence industry is becoming increasingly competitive, with companies like IDC and forrester vying for market share.

Earnings Reports & Guidance: Recent earnings reports and forward-looking guidance have played a role. Any perceived shortfall in expectations can trigger significant sell-offs.

The Elliott Wave Outlook: Is a “Wave C” Imminent?

Elliott Wave theory posits that market prices move in predictable patterns called waves. A typical cycle consists of five impulse waves in the direction of the trend,followed by three corrective waves. Many analysts beleive the current market correction is a potential “Wave 2” or “Wave 4” retracement.However, Gartner’s sharp decline has led some to speculate that we are witnessing the beginning of a more substantial “Wave C” – the final leg of a corrective pattern.

Wave A & B: The initial decline (Wave A) and subsequent rally (Wave B) often lull investors into a false sense of security.

Wave C – The Potential Drop: Wave C is typically the most significant and often the fastest decline in a corrective sequence. A 60% drop like Gartner’s could be indicative of this phase.

Fibonacci Retracements: Elliott Wave practitioners often use Fibonacci retracement levels to identify potential support and resistance areas. Analyzing Gartner’s price action through this lens can offer clues about potential turning points.

Market Correction Context: Broader Trends & sector Performance

Gartner’s struggles aren’t isolated. The broader market has been experiencing increased volatility and a correction from previous all-time highs. Understanding these overarching trends is crucial for assessing Gartner’s future prospects.

Tech Sector Underperformance: The technology sector, in general, has underperformed in recent months, with many high-growth stocks experiencing significant corrections.

Interest Rate Sensitivity: Growth stocks, like many in the tech sector, are particularly sensitive to rising interest rates. Higher rates make future earnings less valuable, impacting valuations.

Defensive Sectors Outperforming: Investors have been rotating into more defensive sectors, such as consumer staples and healthcare, seeking safety during the market downturn. This shift in sentiment can exacerbate the decline in growth-oriented stocks.

VIX Index: Monitoring the VIX (Volatility Index) provides insight into market fear and uncertainty. A rising VIX typically signals increased risk aversion.

Gartner’s Fundamentals: A Deeper Dive

Despite the recent price decline, it’s essential to assess Gartner’s underlying fundamentals.

Revenue Growth: While growth is slowing, Gartner still generates substantial revenue