MarketBeat Week in Review – 5/13 - 5/17

Markets are mostly flat to end a week in which the Dow hit the 40,000 mark for the first time. Investors may be taking a breather to digest mixed news about inflation. The larger question is whether inflation matters to stock performance. The major exchanges are all up sharply in 2024 despite a strong likelihood that the Federal Reserve won't lower interest rates until after the election.   

Next week, the big story will come from Nvidia which will post its first quarter earnings. The report will give investors a progress report on the pace and scale of artificial intelligence (AI) demand.  

The markets are entering a historically quieter time of year. As you settle into your summer plans, the MarketBeat team will keep you on top of the stocks and stories that are moving the markets. Here are some of the top stories from this week.  

Articles by Jea Yu 

It's a digital media world, but not every company is equally valued in that world. Jea Yu wrote this week that The Trade Desk Inc.'s NASDAQ: TTD earnings report shows that spending on digital advertising is on the rise for social media companies. The same can't be said for streaming companies. 

One reason for that discrepancy is that every streaming company is now chasing Netflix Inc. NASDAQ: NFLX. With that in mind, Yu explained how the newly formed alliance between Warner Bros. Discovery Inc. NASDAQ: WBD and The Walt Disney Co. NYSE: DIS is an attempt to give investors a bundled streaming option to help companies compete with Netflix.  

Defense stocks have been strong performers in 2024. One of the top names is Raytheon Technologies Corp. NYSE: RTX. The company's shares are at 52-week highs after the U.S. Congress passed the $61 billion aid package for Ukraine. Yu explains why continued strong demand will likely keep the vertically integrated company's stock moving higher. 

Articles by Thomas Hughes 

With stocks still having a "prisoner of the moment" feel, traders and investors are looking for any advantage they can get. This week, Thomas Hughes highlighted three stocks that have recently received analyst upgrades. This signals that these stocks enjoy institutional support and will likely move higher in the next 12 months. 

Penny stocks remain attractive to speculative investors looking for massive growth potential. As Hughes points out, investing in penny stocks doesn't have to relegate you to meme stocks. Hughes analyzes five penny stocks that posted double-digit gains based on strength in their underlying businesses.  

And this week's mixed earnings report from Home Depot NYSE: HD reminds investors to know why they own a stock. Home Depot's numbers don't suggest significant growth is coming in the next few quarters. But it also shouldn't discourage income investors who are counting on the company's dividend.   

Articles by Sam Quirke 

Could Nvidia Corporation NASDAQ: NVDA 1,000 be on the way? That's the opinion of some analysts. This week, Sam Quirke explains the analyst sentiment and gives you three reasons to believe that a four-digit stock price for NVDA may be closer than you think.  

Amazon.com Inc. NASDAQ: AMZN isn't going to be a $1,000 stock. But Quirke writes that Amazon explains why AMZN stock could rise by 30% after the company crushed its first quarter earnings report.  

Quirke also wrote that growth-hungry investors looking outside of technology stocks may want to buy the dip in Lululemon Athletica Inc. NASDAQ: LULU. Despite a solid earnings report in March, LULU stock is down over 34% in 2024. Quirke explains the fundamental and technical reasons why the stock may be setting up as a rare bargain.  

Articles by Chris Markoch 

Shares of GameStop Inc. NYSE: GME ripped higher this week as Roaring Kitty took to X again. But Chris Markoch explains why investors thinking about chasing GME stock higher should be aware that this rally is fueled by hype, not hope.  

Rocket Lab USA Inc. NASDAQ: RKLB is a small-cap aerospace company trying to make a name for itself in the emerging space economy. Markoch explains that the company's recent earnings report shouldn't discourage the bulls, but patience will be needed. The company isn't forecasting profitability until 2026. Until then, RKLB stock is likely to have a choppy path.  

Another small-cap company with a choppy path is Evolv Technologies Holdings Inc. NASDAQ: EVLV. The company is the target of a class-action lawsuit at a time when it's still trying to get to profitability. This is a reminder that unprofitable companies carry a high risk. However, the fundamentals still suggest that EVLV stock may be a worthwhile hold for long-term investors.  

Articles by Ryan Hasson 

One of the major stories this week was the resurgence of the meme stock movement. Is it 2021 all over again? That seems unlikely. However, Ryan Hasson highlights five meme stocks with high short interest. High short interest is one of the conditions that can make a stock ripe for a short squeeze.  

Many investors are investing in the growth of artificial intelligence. However, Hasson explains why this may be a good time to invest in robotic stocks and highlights five robotics stocks that are leading the growth in the sector.  

And in the better-late-than-never category, Hasson wrote about the recent surge in the utilities sector. Many investors believed this would happen in 2023, but the sector turned out to be a laggard. The recent breakout suggests that sentiment is changing, and Hasson gives you three stocks that stand out.   

Articles by Gabriel Osorio-Mazilli 

Another market-moving story this week is the Biden administration's announcement of tariffs on Chinese electric vehicles. Gabriel Osorio-Mazilli explains that this shouldn't impact your decision to buy Chinese stocks, but it may provide a lift for U.S. EV makers, specifically Tesla Inc. NASDAQ: TSLA.   

Sticking with Chinese stocks, Osorio-Mazilli writes about the recent sell-off in Alibaba Group NYSE: BABA. As he explains, this may be a case of Wall Street getting it wrong. And once investors know the whole story, they may not want to be so quick to give up on BABA stock or the Chinese economy.  

When it comes to stocks, affordability is often in the eyes of the investor. However, Osorio-Mazilli notes that there are times when investors shouldn't be too quick to ignore fundamental or technical trends. That's the case with the three affordable stocks selling at a double-digit discount to their peers, but perhaps unfairly so.