When e-commerce giant Alibaba (BABA), based in China, posted quarterly results, the stock looked like it would break down below $80.00. Instead, BABA stock added 7.05% yesterday. Disclosures from several hedge funds taking big positions in the Chinese firm excited investors.
BABA stock indicated a double bottom at $67.50 between Jan. 2024 and late April. This is a bullish signal.
AST SpaceMobile (ASTS) squeezed shorts on Thursday by rising 68.62%. It was the 14th most active stock at 75.56 million shares traded. Short-sellers failed to learn from the squeeze on Gamestop (GME), AMC Entertainment (AMC), and Trump Media (DJT). The short float of 28.93% could add further pain for bears.
ASTS announced a significant deal to provide satellite networking services (broadband) on regular smartphones. AT&T is its partner. The firms will launch five satellites in low orbit this summer in June 2024.
In the chip sector, Intel (INTC) is often left out of the bullish rally. Shares peaked at $50 in January and potentially bottomed at $30.00. Wolfe Research upgraded Intel on Thursday. Although citing the 35% YTD decline as pricing in concerns about its foundry business, the upgrade is not convincing. Fortunately, Intel gets plenty of tax credits and subsidies to build manufacturing plants. That limits the capital expenditure risks for the next three years.
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