Shares of Airbnb (ABNB) rallied more than 5% to their highs for the day before settling into the close with gains of 4%. Investor’s sharp buying of the stock was sparked by analysts at Bernstein reiterating their bullish outlook. In addition, the analysts lowered their target price for the stock.
The reiteration comes after shares of Airbnb were downgraded earlier this month as slowing growth in room stays has cast shadows on Airbnb and the travel industry.
Airbnb stock has been trading in an extremely tight range over the last month, putting it at risk of a breakdown to $100, a move that may have been averted by today’s analyst comments.
That said, the stock is still stuck in a bearish short- and long-term bearish trends as indicated by the stock’s declining 50- and 200-day moving averages.
Today’s move puts Airbnb shares within 5% of their declining 50-day moving average. That powerful trendline should be observed as major resistance for the stock. Today, Airbnb’s 50-day moving average sits at $127.55.
It should also be observed that the stock has broken above its top Bollinger Band. This volatility indicator suggests that the stock should see increased activity over the next 5-10 days. For now, that volatility is in favor of the bulls.
Airbnb remains in a bearish trend with a price target of $100.
Shares of Hewlett Packard Enterprise (HPE) were the best performer in their sector, rising past its 200-day moving average to its best level in nearly two weeks.
Bank of America Securities upgraded the stock to Buy from Neutral with a $24 target this morning, setting the stock on its trajectory.
The upgrade came on the heels of the announcement that the UK's Competition and Markets Authority investigated and cleared the anticipated acquisition by Hewlett Packard Enterprise Company of Juniper Networks.
HPE stock has been trading in a long-term bull market since 2022 with year-to-date returns of only 8% in 2024. The stock is trading more than 20% from its 2024 highs in June.
The stock rallied 30% after a positive earnings report and the announcement that NVIDIA’s CEO Jensen Huang would appear at HPE's Investor Relations Summit on June 18 to speak about the companies' AI partnership
Shares are now battling an intermediate-term bear market trend as the stock’s 50-day moving average turned bearish in mid-August. That 50-day moving average is positioned overhead at $18.88, roughly 4% away.
Investors should expect that Hewlett Packard Enterprise shares will run into resistance at that 50-day and continue to see pressure through into October when the market begins a seasonally bullish period.
Shares of Hewlett Packard Enterprise have a bullish outlook with a price target of $25.
Microsoft (MSFT) shares surged higher at the open on Tuesday after the company announced and increase to their dividend and a share repurchase authorization after the close on Monday.
Headlines lifted the stock in early trading as the company announced an increase of their quarterly dividend of 10%.
In addition, Microsoft’s management announced a $60 billion share repurchase authorization.
Microsoft’s news firms the stocks recent break above tow critical trendline levels.
The stock broke above its 200-day moving average last week after a brief stint of trading below the long-term trendline. That bullish move was followed by a surge above the stock’s 50-day moving average just two days later.
Microsoft stock has been locked in a short-term bearish trend since the stock’s 50-day moving average began to descend in early August along with several of the Magnificent Seven stocks.
Overly bullish sentiment and mixed earnings results have been the cause of recent selling among these names. That, mixed with the seasonally weak September trading cycle have the Nasdaq 100 trading lower for the month.
Microsoft is now emerging as one of the stronger Magnificent Seven stocks in September.
For the month, Tesla (TSLA) has led the pack of seven stocks with its return of 6%. Microsoft and Amazon are both a close second at 4% for the month.
Microsoft remains in a long-term bull market trend with a price target of $550.00.
