Two tech stocks jumped today on analyst action early in the day. 👍
First up is Fastly, which received a rare “double upgrade” from a Bank of America analyst. Tal Liani noted that the company’s core technology and new management could allow it to achieve profitability next year. As a result, he upgraded the stock from “underperform” to “buy.”
$FSLY shares rose 28%, marking their largest percentage gain in about three years. 😮
Next is ContextLogic, better known as Wish. The struggling e-commerce platform jumped after Citron Research posted several bullish tweets about the stock following the Super Bowl. 🐦
Chinese -e-commerce giant PDD took out ads for its Temu U.S. shopping site during the Super Bowl, which sparked the flurry of tweets from Citron. They noted they were “reluctant to mention $WISH” but that Temu’s recent traction using the same business model has created the “most asymmetric opportunity in the market.”
They argue that if this business model is going to work, $WISH is being very mispriced by the market. It has a lot of cash on hand, no debt, and a $280 million credit line available. That should give it plenty of time to execute on the longer-term business opportunity. 📈
Whether or not they’re right remains to be seen. But some technical analysts pointed to today’s 37% rally in $WISH shares could be the start of a potential long-term trend reversal. 🤔