GameStop, Plug Power, Progenity, Robinhood – 24/7 Wall St.
The Nasdaq set a new all-time high on Friday, but the S&P 500 and the Dow Jones both closed for the day. Mega-cap tech stocks, led by Apple, rose 0.8% on Friday while the energy sector fell 3.9%. Crude oil settled at $ 76.10 on Friday and fell below $ 75 a barrel early Monday morning, before recovering somewhat. Bitcoin traded around 4% Monday morning to around $ 57,000, well below Friday’s close of $ 59,568. The yield on 10-year US Treasuries fell to around 1.55% on Friday, but added around three basis points in early action Monday morning.
On the equity front itself, Robinhood Markets Inc. (NASDAQ: HOOD) fell about 5% on Friday following a call from Deutsche Bank analyst Brian Bedell. The stock fell 17% last week and is down nearly 60% since its August high. Bedell maintained his Hold rating on the stock, but posted a “sell idea” comment based on his analysis that investors may have overestimated Robinhood’s “key fundamentals and growth path”. The stock traded around 1% in Monday’s pre-market.
The favorite of retail investors GameStop Corp. (NYSE: GME) added nearly 9% to its stock price on Friday to end the week with a price rise of more than 13%. The company had no specific news, but the action was generating more positive comments Monday morning on WallStreetBets. It might be worth revisiting an October Financial Times article, following the Securities and Exchange Commission report on GameStop and the Markets, which sheds light on what really happened in January. Hint: Short hedging of hedge funds isn’t what pushed GameStop stocks to nosebleed levels. The stock traded up about 2.5% during Monday’s pre-market.
Hydrogen fuel cell maker Plug Power Inc. (NASDAQ: PLUG) added more than 10% to its stock price on Friday, and the stock traded an additional 2% in the pre-market session. Monday. Morgan Stanley analyst Stephen Byrd maintained an overweight rating on the stock, but raised his price target from $ 43 to $ 65 per share. According to Barron’s, Byrd is seeing a “virtuous cycle” forming in which Plug Power cost reductions lead to increased sales, resulting in greater scale and lower unit costs. “
Biotech company Progenity Inc. (NASDAQ: PROG) once again tops Fintel’s weekly squeeze list:
[S]Short-term interest remains at 21.96 million shares, which is a decrease of 4% from the previous report but still 104% more than the report of the previous month and 19.54% of the total free float. The cost of borrowing PROG shares is 68%, which is extremely high. The company remains on the REG SHO [the SEC regulation prohibiting naked short selling] List of thresholds, which means that the stocks had a high level of delivery failures.
The stock rose 13.7% on Friday and was up less than 1% on Monday morning. The stock gained nearly 65% last week, after more than doubling on Wednesday morning. The company got news last week, but it barely seemed enough to push the price up that high. Considering the high potential of a short squeeze, this could have been what was happening.
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