In the last day, investors watched three stocks perform at the bottom. The 7% drop or more might reverse if sentiment changes.
Axon Enterprises (AXON) broke down after failing to trade above $650. The stock fell from the low $600s to $518.30 in just three trading sessions. On August 5, Axon posted a 35.3% Y/Y increase in revenue, to $904.3 million. It also reported strong bookings and raised its guidance.
Shareholders are nervous about Axon’s generous stock-based compensation.
Cadence Design Systems (CDNS) continued its downtrend after falling by 7.6% on Tuesday. The stock peaked at $416.69 on June 1. Since then, CDNS stock has formed an inexplicable downtrend. Closing at $313.04, the stock still trades at a premium. Its P/E is 42.4 times, 69% above the sector median.
CDNS stock has a lofty market capitalization of $86.2 billion. The stock risks re-testing April’s lows in the $280 range.
Markets sold brokerage stocks. Interactive Brokers (IBKR) fell by 7.1% to close at $90.39. The chart showed a bearish multiple-top pattern around $97. Futu Holdings (FUTU) also traded lower, but the stock is still holding an uptrend. Schwab (SCHW) also has an uptrend intact despite its small, recent dip of 3.55%.
Robinhood (HOOD) and Coinbase (COIN) are stuck in a wide trading range. The markets are waiting for the government to pass stablecoin regulations. That would give crypto platforms more transaction volume, lifting their revenue.
