Synchrony Financial (SYF) is the beneficiary of the market’s enthusiasm for the financial sector. SYF stock gained 18.8% as markets picked up shares of credit card suppliers.
Investors may consider Upstart Holdings (UPST), Affirm Holdings (AFRM), and Root (ROOT).
In the artificial intelligence sector, Super Micro Computer (SMCI) could fall below $20.00 next. The stock lost 18.0% on Wednesday after posting a weak preliminary Q1 result. Its revenue in Q1 of $6.0 billion is below the $6.79 billion consensus estimate. The Q2 outlook is also weak. It will not meet revenue and non-GAAP EPS targets.
SMCI is the third largest customer of Nvidia (NVDA). Expect Nvidia to mitigate SMCI’s de-listing risks and customer losses. It will reallocate sales of its latest Blackwell AI server to other customers.
Markets sold off solar energy stocks. Enphase (ENPH) fell by 16.8% as a result.
Fundamentals are worsening. In Q3, weak demand in Europe hurt results. In Q4, Enphase expects ongoing headwinds. The firm is losing market share to the Chinese competition.
Just as China is flooding the electric vehicle market, and hurting prices, the same is happening in the solar energy market.
International Flavors & Fragrances (IFF) could fall further after posting Q3 results. Revenue topped $2.93B, or 3.9% Y/Y growth. For the year, the firm expects volume to increase by 5% to 6%. IFF stock is trading at fair value. It needs to fall below $80.00 before investors consider this stock.
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