Markets gleaned past the Fed’s unsurprising rate pause and panic sold on the stance of no rate cut this March. The 2% drop in the index is noise. Sell-offs for specific companies are the biggest risk today.
Earlier this week, iRobot (IRBT) plunged from $17 to close at $13.60 on Jan. 31. The FTC is reportedly focusing on stopping bad deals. However, forbidding Amazon (AMZN) from buying iRobot will enable China’s robotic vacuums to thrive globally. iRobot has a high chance of filing for bankruptcy. The $97 million break-up fee Amazon pays iRobot will not help.
Markets will buy the dip on New York Community Bancorp (NYCB) after its 37.67% decline. The firm cut its dividend and posted a Q1 loss as it built its reserve. Not one single analyst foresaw NYCB’s need to increase its reserve. The bank’s CEO previously communicated a commitment to pay the dividend. By angering its long-term shareholders, NYCB becomes a short-term rebound trade. Its investors may sell the stock should it rally.
NYCB stock has a tangible book value of over $10. As it rises throughout 2024, the stock may potentially rebound.
Stay away from speculation today. The sentiment reversal toward fear and uncertainty will hurt cryptocurrency mining stocks like Marathon Digital (MARA). EV stocks like Nio, Lucid, and Canoo (GOEV) will struggle without Tesla’s (EV) leadership.
