Bears who bet against the “sure thing” slump in de-SPAC stocks are taking a substantial risk. Trump Media (DJT) rebounded by 15% after spending weeks falling from $70 to the mid-$20s.
After Wednesday’s rally on no news, DJT stock risks falling sharply again. The firm’s owners are anxiously selling warrants. This decreases the market capitalization when the share price falls.
Globe Life (GL) will continue to bounce back today, after adding 5.44% yesterday. The insurance firm is attracting bargain hunters. Conversely, Root Insurance (ROOT) peaked at over $80 in early April. ROOT stock dropped by 13.13% on no news. The firm will post quarterly results on April 30, 2024 at 5:00 p.m.
In the airline sector, United Airlines (UAL) gained 17.45% yesterday. Traders will pick up UAL and its peer, American Airlines (AAL). In Q1, UAL benefited from strong passenger demand that grew in the double-digit percentage sequentially. For the full year of 2024, UAL expects earnings of $11.00 per share.
Watch the chip sector today. Micron (MU) is widely expected to get a $6 billion grant from the Commerce Department. The government continued its support for bringing production back to the U.S. This reduces the country’s reliance on China. With that trend continuing, avoid Chinese tech firms like Alibaba (BABA), Baidu (BIDU), and JD.com (JD).
