Intel jumped early Tuesday, hitting a 52-week high soon after the open, as Keybanc analysts upgraded the stock to “overweight” and put an above-consensus $60 price target on the shares, suggesting an upside of 25%.
They also upgraded Advanced Micro Devices to “overweight” and put a $270 target on the shares, a ~23% premium from where they’re trading.
Software shares are rising again early Wednesday, putting the widely watched iShares Expanded Tech Software ETF on track for its best three-day stretch in almost a year.
So far this week, Oracle is up more than 20%, Microsoft is up over 9%, and both ServiceNow and Datadog have gained more than 12%.
Intuit, CrowdStrike, Autodesk, and Atlassian were also among the software shares rising Wednesday after taking lumps on worries about AI disruption earlier this year.
Why the rebound? Mean reversion is a powerful force in markets, and some of these shares could simply be enjoying an overdue snapback.
Bloomberg suggests there’s some “bottom fishing” going on, with investors finally deciding that the price for these still highly profitable, cash flow-positive companies has fallen low enough to make them a compelling bargain.
Pat Tschosik, chief thematic strategist at research firm Ned Davis, told Sherwood News that the market may have been too panicky about software stocks as a whole, slamming the shares of software companies that could survive and thrive in the AI era along with those doomed to disruption.
Determining the difference between the winners and the losers will take a look at the fundamentals of individual companies.
“Somebody who does the homework is going to make a lot of money in these stocks,” he said.
So far this week, Oracle is up more than 20%, Microsoft is up over 9%, and both ServiceNow and Datadog have gained more than 12%.
Intuit, CrowdStrike, Autodesk, and Atlassian were also among the software shares rising Wednesday after taking lumps on worries about AI disruption earlier this year.
Why the rebound? Mean reversion is a powerful force in markets, and some of these shares could simply be enjoying an overdue snapback.
Bloomberg suggests there’s some “bottom fishing” going on, with investors finally deciding that the price for these still highly profitable, cash flow-positive companies has fallen low enough to make them a compelling bargain.
Pat Tschosik, chief thematic strategist at research firm Ned Davis, told Sherwood News that the market may have been too panicky about software stocks as a whole, slamming the shares of software companies that could survive and thrive in the AI era along with those doomed to disruption.
Determining the difference between the winners and the losers will take a look at the fundamentals of individual companies.
“Somebody who does the homework is going to make a lot of money in these stocks,” he said.
Shares of Robinhood Markets and Webull are surging in premarket trading after the US Securities and Exchange Commission gave the green light to removing a rule that had impeded small traders from day trading.
The pattern day trading rule will no longer bar traders from making more than four day trades over a five-day period if their margin account has less than $25,000. The changes were initially proposed by the Financial Industry Regulatory Authority. Under the SEC order published Tuesday after the close of regular trading, all traders, regardless of account size, will just need to have enough in their margin account to cover their exposure.
(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)
Allbirds shares rocketed higher on Wednesday.
