Watch The Gaps In Netflix, Facebook, Roku, and AMD
To say Netflix shares entered into a higher orbit today may be an understatement. The stock surged by about 10 percent which sent the stock over $250. The company’s market cap now stands at $108 billion; it has been a fantastic run.
But don’t get crazy with the stock up at these levels, because we all know just how much the market loves to fill the gap, and that would mean over the next several weeks we could see shares of Netflix trade back down to roughly $225. It is worth noting that after the company reported in the fall of 2016, shares gapped higher and trickled lower, and the same happened again during July of 2017. Be mindful and perhaps patient.
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Tesla shares jumped out of the gate, and by the day’s end, all of those early gains were gone. More filling the gap, it would seem. But the news of Elon Musk’s new contract being tied to performance seems like a win for investors if his grand vision comes true. As an Investors, I’d be more than happy to see him make as much money as possible over the life of the contract, because that should mean the stock has performed well.
But the stock appears to be solid, and today’s give back seems to be a non-event at this point. The trend in the stock is still positive, and that is a good thing considering earnings should be upon us in a few short weeks.
Facebook shares not only have recovered all the losses from the news feed revamp, but they are now higher than where they started. Surprised? Well, you shouldn’t be, the market has a way of overreacting to things that do not matter.
Roku shares gapped up, and by the end of the day that gap was filled, and then some. The trend is still lower for this stock.
AMD shares continue to look solid after a strong start to 2018. $14.25 seems like a reasonable level for the stock to continue to climb, over the next week or so.
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Michael Kramer and the clients of Mott Capital own shares of NFLX and TSLA
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