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Top Stocks of the Week!
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Hope all of you had a blast on the 4th. Even though the market finished at new ATH this week, major US stock indexes fell by nearly 1% on Thursday before rebounding on Friday, recovering the previous day’s losses and then some. Also, given that we are entering earnings season, Wall Street is expecting the biggest quarterly earnings growth in a decade . Overall, the discussion volume across social media was muted this week due to the dropping stock prices for the most popular stocks.
Most Discussed Stocks of the Week
This unusual flip-flop of the market this week caused increasing chatter about SPY. This is the first time where SPY became the most discussed stock. GME, AMC, and WISH continue to be the top 3 discussed stocks with almost similar discussion volume. Newcomer’s to the list include Newegg following their 143% stock price rally last week and DiDi and Alibaba Group following the Chinese crackdown on tech companies.
Top Growing Stocks of the Week
Above is the list of stocks that have exploded in the number of mentions throughout social media.
Newegg Commerce($NEGG): NEGG stock has more than doubled this week ending 143% higher than last week. While there is no concrete reason why NEGG was soaring, one catalyst was the availability of option-based trading that started in early July. But, retail investors are extremely skeptical regarding the current rise as reflected in the stock sentiment (-0.2%).
Carver Bancorp($CARV): CARV stock jumped more than 150% this week following the rising retail crowd interest. CARV was one of the most shorted stocks (68% of the stock’s free float ) across NYSE and Nasdaq. This high short interest triggered the retail crowd to pile into the stock causing the stock to jump a whopping 107% on Thursday. The wild rise of the stock is also aided by the small market cap (~$92MM)
Amazon($AMZN): Amazon was trending due to its deal with Comcast. Under the deal, Amazon would now be able to offer recent live-action Universal movie releases. Adding to this, the speculations surrounding Bezo’s and Branson’s space race are also spilling over to the stock.
DiDi Global($DIDI): DIDI stock took a hard tumble following the Chinese crackdown on tech stocks. Beijing has now put DiDi under cybersecurity review and has also banned it from accepting new users. Adding to this, it has also directed app stores to stop offering DiDi’s app. The news also caused sell-off across Chinese tech stocks with Alibaba dropping 5% and NIO dropping 11%. According to a rough calculation from a new partnership formed by the Rhodium Group and the Atlantic Council, as much as $45 trillion in new capital flows into and out of China by 2030 would be stopped due to the rising regulations.
Microsoft($MSFT): MSFT was trending as the stock had a nice rally till Wednesday before dropping. Adding to this, the Department of Defense announced that it is killing off its controversial Joint Enterprise Defense Infrastructure, or JEDI, cloud-computing project. This was one of the military’s largest technology contracts ($10B) that MSFT won in 2019.
Honorable Mentions: Alibaba Group($BABA) chatter went up 60% following the Chinese crackdown on tech stocks and Boeing was trending (+67% chatter) following the willingness of Chinese aviation officials to conduct flight tests on Boeing Co's 737 MAX, potentially paving the way for the fastest-selling jet's return in China.
[1,2] - FactSet Data
As always, please note that I am not a financial advisor. Hope you enjoyed this week’s top stocks issue! If you found this insightful, please share it with your friends :)
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