Three Stocks: A Love/Hate Relationship, Touching the Third Rail Thursday, and No Longer the Big Dog on the Block

Three Stocks of the Day:

A Love/Hate Relationship

I’m in a love/hate relationship with Netflix (NFLX).  I love the stock and I hate the service. The hate part may not be true as I’m warming back up to NFLX, that’s not important.

The analysts are fighting over NFLX this week as we’ve seen a few downgrades and one upgrade. 

Here’s all you need to know.

The average analyst price target for NFLX is around $475 with the stock trading at $500. This is why the analysts are getting active. It’s time to either increase their target or downgrade the stock. You’re going to find the better analyst’s increasing their target like this morning when Oppenheimer increased theirs from $475 to $600.

Bottom Line: Netflix will be one of the “Big Three” in five years and warrants the $600 or higher price target.

Touching the Third Rail Thursday

Shares of Tesla (TSLA) crossed below their 200-day moving average as investors continue to question the near-term potential for the stock.

Increasing competition, along with some bad headlines on the company’s CEO Elon Musk, have The Street selling the stock below one of the most important technical trendlines, the 200-day moving average.

Bottom Line: Expect some analyst chatter next week that will push TSLA shares lower to $200.

No Longer the Big Dog on the Block

News hit the sires last night that Microsoft (MSFT)’s market cap is now larger than that of Apple (AAPL).  The reason for the change in leadership comes down to Microsoft’s push to monetize AI.

More importantly, the recent analyst downgrades and signs that the Apple consumer may be weakening are putting AAPL shares in a must win situation.

Bottom Line: The stock is trading just above its 200-day moving average. Yes, the same one I just mentioned above in my TSLA comments.  A break below that “line in the sand” will draw the sellers into the market in a pre-earnings selling spree that will drop shares to $170.

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About the Author

Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.

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