Adobe
Adobe (ADBE) stock is trading 13% lower at $500 this morning after the company forecasted lighter than expected revenue for the current quarter. The company’s earnings report for last quarter beat expectations, but the market is always forward-looking, so the stock pays today.
This is still one of the leaders in generative AI, remember that.
The company is in the process of rolling out a number of AI initiatives that will add to revenue and the bottom line in the coming quarters.
For now, I expect to see the stock try to hold the $500 price level as a round-numbered technical level.
A break below this price next week will target a move to the stock’s 20-month moving average at $450.
That would also put the stock in a position to move into a long-term bear market trend, so all eyes should focus on that price.
SoundHound AI
We’re seeing shares of SoundHound (SOUN) trade back to $7.50 this morning as the stock dips on no meaningful headlines.
The headlines that are out there are simple, “why is SoundHound trading lower?”-style statement stories.
Here’s the real view.
SoundHound shares are going through what I call a “Discovery Phase.”
The stock – for the most part – was unknown to average investors a few months ago and has burst into the scene causing a feeding frenzy of investors and traders buying and selling the stock.
Selling days like today are mostly generated by short-term profit-taking.
Example: Traders that bought the stock at $6 just four days ago selling it for $8 today. It’s hard to turn down a one-week 30% return on any stock.
That’s what drives selling days like today. But there’s more to the stock that you need to watch.
Being the newest AI stock on the block, SoundHound is now gaining some attention from Wall Street Analysts. Currently, only six analysts have a rating on the stock. That number was five just a week ago as new analysts are picking up coverage of SoundHound.
The increased attention typically results in more money flowing into the company’s stock. This will be magnified by a breakout of the “$10 range,” which may happen as early as next week.
Watch for another move higher above $8 and then a target of $12 as the stock garners more attention from Wall Street analysts.
Fisker
Shares of Fisker (FSR) are trading 17% higher this morning with no new headlines on the stock.
The most recent news on the company was that its bankruptcy filing appeared eminent, reported by The Wall Street Journal.
The stock will make headlines over the next week – bankruptcy or no bankruptcy. At $0.17, it’s my opinion and experience that this stock has no place in the average investor’s portfolio.
Leave this stock for the vultures.
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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.