Facebook Stock Bounces Back; Plus, the Popping Penny Stock

By Katie Coburn / September 27, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are trading cautiously higher this afternoon, as traders digest the details of President Trump's tax plan. Three stocks also trading higher today are social media giant Facebook Inc (NASDAQ:FB), digital media tech stock Remark Holdings, Inc. (NASDAQ:MARK), and internet marketing firm HubSpot Inc (NYSE:HUBS). Here's a quick look at what is moving shares of FB, MARK, and HUBS.

Facebook Bounces Back After Tech Sell-Off

Despite being one of the FAANG stocks that sold off Monday, Facebook shares are trading 1.4% higher today at $166.60, following Cowen and Company's price-target hike to $200 from $195 -- in uncharted territory. The analysts attributed the bullish note to encouraging user/engagement metrics from Facebook-owned Instagram. FB shares have gained roughly 45% in 2017, hitting a post-earnings record high of $175.49 on July 27. The stock has since shed about 5%, but found support from its 80-day moving average, which contained previous pullbacks in June and July.

Although all but one of the 25 analysts following FB stock rate it a "buy" or better, with not a single "sell" rating in sight, options traders have been more bearish toward the social media stock of late. FB stock sports a 10-day put/call ratio of 0.62 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX) -- good enough to rank in the 81st percentile of its annual range.

Penny Stock Remark Holdings Soars On Artificial Intelligence Contract

Also trading higher today is penny stock Remark Holdings, last seen up 17% at $4.13, after the company's KanKan subsidiary was awarded an artificial intelligence contract by China's state-owned Shanghai municipal health agency. The company plans to use the facial and object recognition technology outlined in the contract to ensure food safety. The seven-figure deal sent the digital media tech stock to an intraday high of $4.87 earlier -- territory MARK shares haven't visited since March 2016.

Today's jump ranks MARK as the top percentage gainer on the Nasdaq. MARK shares have more than doubled since touching a four-year low of $1.93 on June 20, and recently conquered their 160-day moving average. MARK shares are now poised for their 13th consecutive close above this key trendline. Short sellers are taking notice and jumping ship, as short interest on MARK decreased 2.8% during the last reporting period to account for just 1.3% of the stock's total available float.

HUBS Stock Spikes to Record High on Increased Outlook

Ranking among the best on the New York Stock Exchange (NYSE) today is HubSpot stock, which was trading 11.9% higher at $80.70, at last check. Today's spike stems from the company's raised third-quarter outlook. As such, Oppenheimer upped its price target on HUBS to $82 from $80 -- not far from the stock's all-time record of $81.55, which it touched in intraday trading earlier.

HUBS shares have tacked on roughly 72% this year, with recent pullbacks contained by its 120-day moving average. A short squeeze could fuel the stock's fire, too, as short interest represents 8.5% of HUBS' total available float. At the equity's average daily trading volume, it would take more than two weeks to cover these shorted shares.

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