IT Pushes $SPY To New Highs

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Stocktwits Spotlight:

With the technology sector remaining hot and the broader stock market indexes at all-time highs, some market participants are looking for beaten-down names to get back on the right path. 🕵️‍♂️

Speaking of better paths, one of those stocks is UiPath, which makes robotic process automation software. The stock came public in mid-2021 and fell close to 90% through the end of 2022, but spent most of last year building what many technical traders are calling a constructive base.

One of those people is Stocktwits user gpaise, who outlined an “accumulation” pattern forming on the chart above. The simple candlestick chart shows buyers stepping in at a former resistance level from the summer of 2022, just as the textbooks say they should. And with earnings not expected until March 13th, there’s potential for the stock to put on a show before then. 📈

It’s easy for these types of developments to fly under the radar, so we appreciate GP pointing it out. If you like simple charts and ideas like this one, be sure to follow gpaisa on Stocktwits! 👀

Bullets From The Day:

📱 Instagram wants to turn “finstas” into an official product. A finsta is a separate, private, and more personal account that people use to connect with close friends. After years of users creating these types of accounts, Instagram head Adam Mosseri confirmed the company is testing a new product feature called “Flipside” to make the whole process easier. It builds on other developments the social giant has rolled out to allow more personal and private sharing, like the “Close Friends” option for stories. TechCrunch has more.

🏘️ More millennials are living with their parents, especially in HCOL areas. The latest census figures indicated that nearly 16% of U.S. millennials lived with their parents in 2022, as younger people increasingly struggle with high housing costs. The number of Americans aged 25-34 living at home jumped over 87% in the past two decades as real incomes have failed to keep up with record real estate prices. This trend is particularly prevalent in high-cost-of-living areas like coastal cities. More from Axios.

💸 Media streamer Plex raises new capital to close its profitability gap. The company began as a media organization startup and has become a one-stop shop for all your media, including ad-supported streaming. The new round has not yet been disclosed but is larger than the $50 million it raised a few years ago. With the company on track to achieve profitability within the next year, the cash infusion will allow it to stay on track in an increasingly challenging media environment. TechCrunch has more.

🤑 Walmart ups the ante with stock grants to attract and retain managers. After raising its store manager pay for the first time in over a decade, the nation’s largest retailer and private employer is taking things a step further to stand out in a competitive labor market. U.S. store managers will receive up to $20,000 in Walmart stock grants every year, based on store format. The grants will vest quarterly over a three-year period, which will hopefully help further incentivize managers to act and think like owners. AP News has more.

💰 Dividend recaps rise as the deal market remains sluggish. A dividend recapitalization deal occurs when companies issue debt and use some of the proceeds to pay shareholders dividends. With private equity exits plummeting over the last two years, more firms are leaning on this financial engineering method to recoup some of their investment. Of course, this type of transaction raises the risk for the company’s eventual owner and often puts employees and other stakeholders at risk. Axios has more.