Markets enjoyed a long weekend with the exchanges closed yesterday. This will set up pent-up buying for two companies that soared last week. Two firms that sold off are today’s hottest trades.
Applied Materials (AMAT) traded as high as $206.77, a new 52-week high, before closing at $199.57 last Friday. The firm forecasts solid momentum, thanks to artificial intelligence demand and China. In the last quarter, the firm benefited from China spending $500 million in revenue for DRAM.
In the cryptocurrency market, Coinbase (COIN) will need to add to its nearly 9% gain from last Friday. The firm navigated through a tough two years, including FTX’s bankruptcy and Bitcoin falling to as low as $17,700. Cautious investors may want to wait for the short-selling covering to end first. The bears may bet against the company in the coming weeks if the stock price weakens.
Among the beat-up stocks, look at Twilio (TWLO). The stock lost more than $10 last week. The firm did not issue strong guidance, so markets punished the stock for the conservative outlook. Twilio must grow faster than the 5%-6% rate to justify its 4 times sales valuation.
Akamai (AKAM) lost 15% last week. Despite beating expectations, traders likely took profits on the stock. If markets re-categorize the firm as a cybersecurity provider providing the industry with security solutions for edge computing, AKAM stock may rebound today.
