Stock Price Today (February 19): Updates and Forecast
Apple stock breaks below post-COVID uptrend line after largest shareholders disclose share sales
Stock also falls below 50-day moving average, as Vanguard and Warren Buffett's Berkshire Hathaway trim stakes, according to Marketwatch.
Shares of Apple Inc. sank toward a one-month low Wednesday, and broke below two key chart levels in the process, after the technology behemoth's two largest shareholders disclosed that they trimmed their stakes.
The stock (AAPL) shed 2.1% in afternoon trading, enough to pace the Dow Jones Industrial Average's decliners. It was headed for the lowest close since Jan. 19.
The stock is also set to close below its widely watched 50-day moving average (50-DMA) for the first time since Nov. 23. Many chart watchers view the 50-DMA as a guide to the short-term trend, with trades above it suggesting an upward bias and trades below it warning of potential weakness.
But perhaps more worrisome for bulls, the stock has broken below the uptrend line that defined its recovery off the March lows.
Many technicians use uptrend lines as a place to buy a stock on a dip. The fact that Apple's uptrend line was marked by three intraday lows since the start of the line indicates that strategy had worked fairly well, until Wednesday.
The stock's selloff comes after Warren Buffett Berkshire Hathaway Inc. (BRKA) disclosed late Tuesday that it owned 887.14 million Apple shares, or 5.28% of the shares outstanding, as of Dec. 31. That's down from the 944.30 million shares, or 5.55% of the shares outstanding, it owned as of Sept. 30. Berkshire Hathaway remained Apple's second-largest shareholder.
Meanwhile, Apple's largest shareholder, The Vanguard Group Inc., trimmed its stake in Apple by 25.51 million shares. Vanguard owned 1.26 billion shares, or 7.48% of the shares outstanding on Dec. 31, down from 1.28 billion shares, or 7.53% of the shares outstanding, on Sept. 30.
Separately, Epic Games, the developer for the "Fortnite" videogame, said Wednesday it filed an antitrust complaint against Apple (link) with the European Commission. Epic Games alleges that Apple has "not just harmed but completely eliminated competition" on the distribution and payments of apps on the Apple App Store.
Apple's stock has gained 9.4% over the past three months, while the Nasdaq-100 Index has rallied 14.3% and the Dow has tacked on 6.0%.
|Palantir logo on New York Stock Exchange. Photo: Markets.businessinsider|
Palantir upgraded to 'buy' with a fresh $34 price target from Goldman Sachs after revealing 'sustainable growth' in latest earnings
Palantir Technologies received a fresh "buy" rating and a $34 price target from Goldman Sachs on Wednesday, according to Markets.businessinsider.
While the big data analytics firm's stock took a tumble on Tuesday after earnings revealed a surprise loss, analysts at Goldman were pleased with the quarterly results, saying the company now has a path to "sustainable growth".
The analysts, led by Christopher D. Merwin, CFA, said Palantir posted "strong FQ4 results" that beat their revenue and EBITDA expectations by 6% and 115% respectively.
They also noted Palantir's robust revenue guidance and backlog of orders going into 2021.
"We were encouraged to see management guide to $4bn of revenue in FY25, implying a 30% 5-year CAGR from FY20," Merwin said. "With a growing backlog of $2.8bn in deal value (+31% y/y), we believe there is increasing visibility into the achievability of that long-term target."
Government revenue was another bright spot for Palantir in its most recent earnings report, rising 85% year-over-year to $190 million. The company signed 21 deals worth over $5 million with contractors during the quarter compared to just 15 a year ago.
Goldman analysts also said they expect the margin expansion of 63 points seen in the quarter to continue going forward, leading the group to model 23% non-GAAP EBIT, up from 17%.
Furthermore, Goldman said Palantir's deal with IBM to "should help to grow what is a relatively small commercial customer count today."
Palantir's quarterly results were enough for Goldman to more than double its price target from $13 per share to $34. The company should now "trade more in line with 30%+ growth businesses, which are trading at 44x CY21 sales" according to Merwin and his team.
Goldman's price target implies a 22% potential return from Tuesday's closing price.
Palantir's stock has risen nearly 200% in the last six months amid a bull market for equities. However, the company saw its shares fall from all-time-highs of over $39 per share on Jan. 27.
SOS Limited Stock Price Jumps 200% as Company Receives 5,000 Crypto Mining Rigs
Bitcoin and most alternative coins are not the only crypto-related gainers during the ongoing bull cycle. The price developments have pushed numerous industry companies to see stock increases, including Chinese mining firm SOS Limited, which also received an endorsement from Shark Tank’s Kevin O’Leary.
SOS Limited Recent Developments
With a membership base of about 20 million in China, SOS is an “emerging blockchain-based and big data-driven marketing and solution provider,” which recently expanded its services into crypto mining, security, and insurance.
The company announced earlier this month that it had received 5,000 mining rigs five days ahead of schedule. The estimated power provided by the machines could result in BTC hash power of 175P and ETH hash power of 350G.
“We have secured a supply of crypto mining equipment that is expected to generate sufficient crypto hash power to allow us to promptly capture the rising cryptocurrency price.” – commented SOS Chairman Yandai Wang.
Separately, the company received significant recognition from the Canadian businessman, author, and politician – Kevin O’Leary, also known as Mr. Wonderful. The star of the US reality show Shark Tank said that people “care about blockchain and clean energy” and urged them to check out SOS Limited.
Furthermore, the firm also announced last week that it had entered into a securities purchase agreement with certain accredited investors to purchase $110 million worth of its American Depositary Shares (ADS) and warrants in a registered direct offering priced at-the-market under the NYSE rules.
SOS Limited Stock Price Soar
Whether it’s the aforementioned company developments or the surging prices within the industry, or, perhaps, both, the company’s stocks have soared since the start of the year, and especially in the past few weeks.
On February 10th, ADR traded below $4, while it closed at nearly $12 yesterday – meaning a 200% increase in seven days. SOS Limited’s stocks entered 2021 with a price tag of about $1.4. Consequently, it’s more than 750% up year-to-date.
Furthermore, MarketWatch data reveals that the ADR shares have surged to above $15 in pre-market trading, enhancing the gains even more.
|Elon Musk, Tesla's CEO, owns SpaceX. Photo: Markets.businessinsider|
SpaceX raises $850 million at Elon Musk's favorite price of $420 per share, report says
Elon Musk's rocket and satellite company, SpaceX, has reportedly raised another $850 million, sending its valuation soaring to about $74 billion.
SpaceX raised the funds at a price of $419.99 per share, CNBC reported, citing people familiar with the financing. That's just shy of the $420 mark at which Musk in 2018 said he had the "funding secured" to take Tesla private; the Securities and Exchange Commission alleged it was a reference to weed.
SpaceX took in $1.9 billion in August, putting its valuation at about $46 billion. The company is gobbling up cash as it pursues ambitious projects such as its Starlink satellite internet service and Starship rockets.
The jump in SpaceX's valuation represents another victory for Musk, whose electric car-company, Tesla, has soared by about 350% in value over the past year. It has made the outspoken entrepreneur one of the richest people in the world.
Musk said on Twitter earlier in February that Starlink, which aims to build a "constellation" of satellites to provide high-speed internet to users around the world, "is a staggeringly difficult technical & economic endeavor."
"However, if we don't fail, the cost to end users will improve every year," he added.
He said in other tweets that SpaceX "needs to pass through a deep chasm of negative cash flow over the next year or so to make Starlink financially viable," adding that "once we can predict cash flow reasonably well, Starlink will IPO."
SpaceX did not immediately respond to a request for comment.
AMC Stock Forecast: AMC Entertainment Holdings Inc gains as meme stocks continue to flounder
AMC has seemingly returned back to obscurity after the much-publicized Reddit meme battle with Wall Street hedge fund managers. Tuesday saw the stock add 1.07% as the price has settled back down to $5.65, a far cry from the 52-week high of $20.36 that AMC saw during the short squeeze. The world’s largest movie theater chain will report its quarterly earnings report at the end of February, and it should be an interesting investor call to say the least, said Fxstreet.
It seems like months ago now that the Reddit subgroup r/WallStreetBets took the stock market by storm, but aside from a few days of big gains, AMC has fallen back down to Earth in a big way. Perhaps the worst part of the whole debacle is the legion of retail investors that are stuck holding the bag, having bought into the meme stocks at unreasonably high valuations. While AMC projects that its theaters should draw-in moviegoers once the COVID-19 pandemic has ended, companies like Roku (NASDAQ:ROKU), Disney (NYSE:DIS), and Netflix (NASDAQ:NFLX) have all been finding ways to bypass theaters completely with their content.
It’s hard to find a bullish case right now for AMC, but perhaps the Reddit saga ultimately accomplished what it was meant to do: save AMC from bankruptcy. CEO Adam Aron has stated that any “imminent bankruptcy is off the table”, but investors have to wonder if we will be revisiting that discussion, the longer the COVID-19 pandemic lingers. Fellow meme stock GameStop (NYSE:GME) is at the center of a congressional hearing on the regulations of the capital markets. Suffice to say, it should be interesting to hear what information comes of these hearings.
GE Stock Price Forecast: General Electric Company continues its recovery and gains on dividend announcement
GE has finally recovered to its pre-pandemic price levels and Wall Street is becoming increasingly bullish on the nearly 130-year old company. On Tuesday, the stock gained 2.05% to close the trading session at $11.97, even as the broader markets remained rocky and ended the day in the red. Shares are now within reach of the 52-week high price of $12.95, a level which has not been seen since January of 2020. The stock is still down 8% over that period, compared to a return of 16.75% by the S&P 500 index.
On Friday, General Electric happily announced a quarterly dividend for its shareholders, another sign that companies are seeing the light at the end of the COVID-19 tunnel. While the dividend is small at just $0.01 per share, it represents a confirmation of General Electric’s forecast of being free-cash flow positive for 2021. Recently, GE CEO Lawrence Culp stated that Q1 of 2021 would still see negative free-cash flow, the rest of the year looks brighter, especially as the dormant aviation sector of General Electric starts up again.
The recent performance of General Electric even has some long-timer bearish analysts raising their eyebrows. A long-time GE analyst from JPMorgan has finally agreed that the strides that Culp and company have taken are positive and that General Electric is in a much better position than a few years ago. It still isn’t enough to raise the price target of $5.00, nor raise his rating to a buy, but anything remotely positive is an improvement.
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