Traders will look at a pair of former stock market darlings whose uptrend abruptly ended. As they find support at moving averages, they may potentially bounce back.
Markets are forgetting that SoFi Technologies (SOFI), an online bank, will likely post a profitable quarter under Chief Executive Officer Noto. Analysts like KBW downgraded the stock, triggering an unnecessary sell-off in SOFI stock to start the year.
SoFi’s upside catalysts include growing deposits, tech platforms, products, and members. Students were required to pay back their loans last October 2023, after three years of delays.
In the technology sector, software firm Palantir Technologies (PLTR) is well off its $20 peak from two months ago. The firm stood by Israel by setting its first board meeting of the new year in Tel Aviv. The company sells counter-terrorism solutions. To win the market permanently, Palantir needs to set an aggressive stock repurchase plan. Short sellers have a modest 5.55% short float against PLTR stock.
In the crypto sector, Bitcoin posted a sharp drop from $47,000 to $42,650 in the last five business days. Instead of buying spot Bitcoin ETFs, investors may watch Riot Platforms (RIOT), Marathon Digital (MARA), MicroStrategy (MSTR), and Coinbase (COIN). The former three stocks have rebound potential while COIN stock has downside risks.
The BTC ETF will hurt Coinbase’s customer growth. Coinbase’s moat weakens as Bitcoin investors buy the ETF from banks and funds instead.
Avoid COIN stock at this time until the dust settles with the BTC ETF.
