Last week, Nasdaq’s 0.03% gain but 3% intraday volatility nearly every day hurt three key stocks.
Sea (SE) lost 11.5%, continuing its 63% decline from 52-week highs. The gaming and e-commerce giant could keep falling. Tencent (TCEHY) sold a $3 billion stake in the Singapore tech group on Jan. 4, or 14.5 million shares. Markets are pricing ongoing selling pressure next.
Spotify (SPOT), a music streaming service, is counting on its dominance in podcasts for growth. Last week, artist Neil Young removed his music from the service. Joni Mitchell joined his movement. SPOT stock is not down for that reason. Yet that negative publicity cannot help its branding.
Spotify will need to post strong account growth in its upcoming earnings report to rebound. The stock trades at a triple-digit forward P/E. it has an 0.83 times long-term debt/equity ratio. The firm needs to grow free cash flow and cut spending to win back investors.
In the metaverse and gaming space, Roblox (RBLX) is trading as if gamers are leaving its platform. Set to report quarterly results in mid-February, the stock does not come cheap.
Markets sent RBLX stock close to 52-week lows. It will take more than user activations and revenue per user growth in the quarterly report to win back investors. Alternatively, Nasdaq’s correction would more quickly end the sell-off in RBLX shares.
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