Stocks closed in the red to start the week, with the S&P ending the day down .12%, reversing morning highs. Asia markets closed mixed overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open, the Dollar is in the red while Oil, Yields, and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-75/
Stocks gave back all their morning gains and then some on Monday, as a guide down from NVDA had folks taking profits. Seems every day there is a new large cap company ratcheting down their guidance. This morning MU was the latest company to lower guidance, citing slowing demand since their last earnings report on June 30th. Think it is good these companies are pulling off the band-aid. Hopefully market can continue to digest these updates and the SPY can work its way up to $420 in the coming days. On the flip side, that $410 handle is back in play, Would want to see that hold or could be interesting heading into the CPI data tomorrow:
TRIP opened higher yesterday, testing the $25s before closing at $24.84. I used the move to close some of my Aug 26th strikes for 100%. Still think TRIP can move into the mid-high $20s into next week. Will use the $23.50 handle as a spot I may lock in the rest of my calls and revisit:
APPS reported mixed earnings after the close yesterday. It has had some outsized moves over the past few years so think there maybe an opportunity to play it for a bounce. If it holds $23 in the morning I may look at some calls to play for a move over $25 in the coming days(and possibly higher):
APP announced a non-binding proposal this morning to merge with U, putting the value of U at $58.50 - and this is ahead of U's earnings after the close. Premiums were rich to begin with on the calls so there will be a premium crush at the open. Would assume in the current competitive environment U will do the deal and I won't need to watch it anymore on my streamer. Needless to say, happy I did not add anything yesterday and sad to see U go as it always seemed to play nice when I traded it 🙂
Not much to add to AMLX or MITK from yesterday. AMLX traded into the $22s on no news and despite other Bio names rallying. Will continue to hold my AMLX into September pending any crazy catalyst.
YOU reports earnings next week and think it can trade into the mid-high $30s in the coming week or two. Still looking to add some calls:
And lastly, WIX. As I mentioned on yesterdays WL, GDDY posted a decent quarter last week and should bode well for WIX. WIX has closed higher for 6 sessions in a row and 8 of the past 9. Hate to chase but could see mid-$80s on any rebound report:
Here are the analyst changes of note for today:
PubMatic price target lowered to $24 from $26 at Lake Street |
| Lake Street analyst Eric Martinuzzi lowered the firm's price target on PubMatic to $24 from $26 and keeps a Buy rating on the shares after the company reported Q2 results and issued a new 2022 revenue midpoint of $279M, down from the prior $284M. Given his lowered 2023 growth forecast, he is applying a lower AEBITDA valuation multiple, Martinuzzi tells investors |
| DermTech price target lowered to $18 from $37 at Craig-Hallum |
| Craig-Hallum lowered the firm's price target on DermTech to $18 from $37 and keeps a Buy rating on the shares. Q2 scrolled as a top line miss as declining ASPs were in focus, despite volumes surpassing the analyst's target, Nowak notes |
Nutrien upgraded to Outperform from Sector Perform at Scotiabank |
| Scotiabank analyst Ben Isaacson upgraded Nutrien to Outperform from Sector Perform with a price target of $110, down from $118. The analyst is bullish on nitrogen and says investor conversations on Nutrien "have transitioned to bullish from bearish." In addition, while the potash market should continue to moderate, the Street has proven that it's priced in, Isaacson tells investors in a research note. He sees "strong valuation support" for the shares and estimates they are worth $112 on a sum-of-the-parts |
| CarGurus price target lowered to $30 from $34 at DA Davidson |
| DA Davidson analyst Tom White lowered the firm's price target on CarGurus to $30 from $34 and keeps a Neutral rating on the shares. The analyst cites the company's below-consensus Q3 guidance, with headwinds impacting the CarOffer business with declining consumer purchase demand due to inflation/macro and a moderation in rental fleet activity on CarOffer relative to the past few quarters |
| Digital Turbine price target lowered to $60 from $85 at Craig-Hallum |
| Craig-Hallum analyst Anthony Stoss lowered the firm's price target on Digital Turbine to $60 from $85 and keeps a Buy rating on the shares. The analyst continues to believe the SingleTap software from Digital Turbine is game changing for the in-app advertising market and the stock could be a multi-bagger again. Stoss notes, however, that while June quarter was in-line, September revenue guide below as economic headwinds weigh on ad spend. He thinks given the current stock price, the company continues to guide very conservatively for the September quarter to keep the bar low |
And here is what I am watching today: YOU, APPS, WIX, RBLX, BEAM, SAGE, CRSP, EDIT, ICPT, SPOT, PTON, CI, and PYPL.
Let's have a great day!
-JB