February’s Nasdaq correction created a split between big-cap names and speculation. In that time, FAANG stocks generally rose to lift the index while expensive stocks continue to drop today. There are three stocks to watch.
Skillz (NYSE:SKLZ) peaked at around $45.00. The stock faded steadily since early Feb. The widely followed and successful actively managed ETF, ARK Invest, added SKLZ stock. This failed to give the stock a meaningful bounce. The company sold 17 million shares on March 17 for over $25.00. The bad news is that insiders may sell enough to undermine investor confidence.
Jumia (NYSE:JMIA), thought to be an e-tailer of Amazon in Africa, peaked at $69.89. The short-float is 14%, leaving more room for downside in this stock.
Last month, JMIA sold 8.96 million shares. The dilution at the top hurts investors.
In the PC gaming space, Corsair (NASDAQ:CRSR) stock is moving nowhere while Lenovo and HP Inc. stock is up. Investors should expect the company to post strong quarterly results, especially with component shortages lifting prices. Profit margins will rise on strong demand for limited PC system availability.
Of the three stocks discussed, Corsair is in value territory while SKLZ and JMIA stock are speculations losing momentum. None of them joined the NASDAQ’s rally. Expect continued underperformance from them.
