Happy hump day folks, even though markets were slightly down yesterday, our picks were still rocking with our picks returning over 10% throughout Tuesday’s trading session! Keep on reading for more actionable ideas!
”If you want to be a millionaire, start with a billion dollars and launch a new airline.”
- Richard Branson
As pictured below, markets were predominantly down yesterday led by tech stocks slipping due to general market fears but also as a result of the uncertainty of the result of ongoing tensions, and live fire exercises in the South China Sea. With that being said, futures have begun to rise in the pre-market as she has departed the area. During Tuesday’s trading session the S&P fell by 67bps, the NASDAQ declined by only 16bps, and the DJIA dropped by 123bps.
Long: Lyft, Inc. (LYFT-NASDAQ) | Timeline: 2-3 days
In a week that has shown strength returning to many pandemic darlings as they begin to report earnings, we are recommending a long on Lyft Inc. Piggybacking off of Uber’s successful earnings report, we believe that the company will perform well as speculation builds for its own report set to be released tomorrow after the close. We say speculation because the news of Uber’s cash flow positive status is getting the markets riled up, however, Lyft is not Uber and is unlikely to have as positive of a result. Like many tech companies, the stock is down roughly 70% on a YTD basis, and as such many are looking for any reason to trigger a bull run. For the risk-averse, we recommend riding the hype and selling before closing tomorrow. However for those with a larger risk appetite waiting for earnings to be released could bring a large windfall provided the company doesn’t slash guidance for the remainder of the year, and 2023. On the technical front, the stock’s MACD and momentum trends both support a move upwards, as they have both been climbing steadily since the deep trough seen in mid-May.
Chart of the Day - Commodity Producers Capex