Mind Medicine
Shares of Mind Medicine (MNMD) traded as much as 20% lower today in the wake of an announcement from an FDA advisory committee. The advisory committee issued a negative vote on a psychedelic treatment being developed by Lykos.
Shares of MindMed finished the day only 10% lower after the analysis of the headlines suggested that the comments were not necessarily applicable to MindMed 120, a therapy that is currently undergoing its Phase 3 study.
Two months ago, MindMed received FDA breakthrough therapy designation after announcing positive 12-week durability data from a Phase 2B study of MM120. The treatment is meant for generalized anxiety disorder.
Shares of MindMed have since doubled to a price of $12.12 a share before declining to their current price of $7.43 as of today’s close. The stock’s 50-day moving average just shifted into a bearish pattern after hitting resistance from the round-numbered $10 price level.
From a long-term perspective, MindMed’s price remains in a bull market trend as the stock remains above its 20-month moving average. Short-term investors should expect the stock’s volatility to remain high as shares will battle to overcome the $8 price against a negative short-term technical picture.
Long-term investors will note the institutional support of the stock as additional analysts add MindMed to their buy recommendation lists. The stock’s long-term target price remains at $20.
CrowdStrike
Shares of CrowdStrike (CRWD) surged 12% for the day after the company provided a great earnings report. For the quarter, CrowdStrike beat earnings per share expectations and their revenue target, as top line growth came in at 33%, better than several names in the software space recently.
In addition to the results, CrowdStrike provided forward-looking guidance raising both their earnings per share and revenue expectations amid the background of high demand for security software. The earnings report and comments come as a slowdown in software spending has become the short-term trend. Companies like Salesforce.com (CRM), Adobe (ADBE), and ServiceNow (NOW) have all indicated that end user demand has softened, perhaps as large corporations begin to prepare for a slowdown in the economy.
One thing that is apparent with CrowdStrike’s results and outlook is that corporations are prioritizing security as we head into the second half of 2024. Shares of CrowdStrike had dipped below their 50-day moving average ahead of the earnings results. That 50-day moving average is in a bullish trend, forecasting higher prices over the next 4-6 weeks. The stock’s next resistance should come into play at $360, the site of its post-earnings highs in March. From there, target a move to $400.
Hewlett Packard Enterprise
Computer company Hewlett Packard Enterprise (HPE) hit new all-time highs today after the company beat earnings expectations and raised their outlook. The company – best known for their PC sales but also a growing force in the AI server business – beat earnings per share expectations, posting a solid beat after Tuesday’s close.
The company noted higher demand for their enterprise server business on top of a fast acceleration in demand for the company’s AI server products. The latter was attributed to healthy growth in revenue that took the company from -13% year-over-year growth last quarter to +3% growth for the current quarter.
The company confirmed their earnings per share and revenue guidance for the next fiscal quarter. That move kept expectations from Wall Street analysts in check as there were no upgrades to the stock as it reached new highs.
Hewlett Packard Enterprise’s price chart is impressive as the stock is trading 23% higher for the last six-month period and well above its technical trendlines, all in bullish trends. Options traders have been heavily positioned in the $20 calls for the June and July expiration dates. That, and the round-numbered nature of $20, should provide some short-term resistance for the stock though long-term investors should target a continuation in the rally to $25 and $30 targets.
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.