Markets enjoyed a strong rebound on Thursday and will continue the momentum to send the S&P 500 (SPY) higher. However, the markets will penalize companies that post weak results. Traders will also sell stocks that only meet expectations.
Twilio (TWLO), a cloud provider of communications solutions, fell by 15.39% on Thursday. It risks falling below $60 due to concerns about its segment business. Management is reviewing Segment’s operations, a customer data infrastructure unit it acquired in 2020 for $3.2 billion.
In Q4, it took a $285.7 million impairment charge related to that acquisition.
Fastly (FSLY) lost 30.6% of its value yesterday, erasing the bullish momentum that began last October from $15. Shares peaked at around $26 just days ago. The firm earned a penny on a non-GAAP measure. For FY 2024, it expects to lose as much as 6 cents a share and break even at best. The firm posted only a slight decrease in its retention rate.
Speculators may bet on FSLY stock trading at oversold levels.
In the gold mining sector, watch Barrick Gold (GOLD). Shares fell from $18 late last year to $14.60. Its FY 2024 gold production of 3.9 million to 4.3 million oz is below the 4.05 oz produced in 2023. Despite the weak outlook, funds like Druckenmiller’s Duquesne added Barrick and Newmont (NEM) stock. Investors may consider gold, despite the weak performance of the mining stock.
