When online banking firm SoFi Technologies (SOFI) rallied above $10 on Monday, it dropped yesterday by 8.3%. Bears are determined to push the stock down to below $7.25 because they have a short float of 13.37%.
Traders placed SOFI stock as the third most active stock yesterday. Expect the stock to trade on high volume today.
Beware of penny stocks like Nikola (NKLA) and Pixelworks (PXLW) trading on the top 20 most actively traded list. They do not have the business fundamentals to justify speculating on their prospects.
In the EV sector, Canoo (GOEV), another penny stock, could spike on the day only to trend lower in the coming weeks. China EV firm NIO traded 5.7% lower to close at $5.79, a new 52-week low on Jan. 30, 2024. China tech firms will continue to struggle as investors realize the dire economic downtrend plaguing companies like PDD, Alibaba (BABA), and JD.
In the tech sector, bullish investors priced in Alphabet’s (GOOG) good news ahead of its Q4/2023 results. They may take profits today after the firm posted revenue growth of 13.5% Y/Y to $86.31 billion. Investors are disappointed that Alphabet’s core business of advertising did not meet expectations. Alphabet reported ad revenue up by only 11%, to $65.5 billion.
Chief Executive Officer Sundar Pichai said, “As we enter the Gemini era, the best is yet to come.” Investors are not waiting. They are selling GOOG stock today and re-evaluating its short-term growth prospects.
