3 Stocks I Saw on TV: GPRO, AMZN, FB (February 05, 2016)
GPRO AMZN FB AMZN GOOGL
Here are 3 stocks that I saw on TV today and I want to go through these with you today, and see if we can find any trades. Or, by the way, NOT.
GoPro ( NASDAQ:GPRO ). Let’s look at the daily chart. This thing has been a fiasco from about day 90, after it peaked out here at $90.00. It’s still funny to me that a camera company could get up almost to $100.00. But here’s the deal: This thing is not going down forever. After the market closed today, this is Friday, they reported that they’ve got a patent licensing deal with Microsoft. The stock is up a little bit. I’ve got a feeling that if it wasn’t for the fact that there was a MASSIVE bloodbath on Wall Street, where just about everything but inverse ETFs was down, this stock would be up a lot more. So the stock’s up a bit after hours, 4 percent, 4 percent is kind of a lot, but it’s still really in a massive downtrend.
Here’s the deal: I’ve been bearish on this for a while but it’s been specifically trend and the fact that I think the business is crap. But $9.00 is a good low. That is a really good reference point for you. Think about it this way, you Shark Tank lovers, this is a Kevin O’Leary deal. O’Leary would be like, “Okay, I’ve got an offer for you.” And then Mark Cuban and Daymond and everybody else says, “Yes, licensing deal.” That’s what the guy likes to do. The cool thing is it’s good for Microsoft but it’s also VERY GOOD for GoPro ( NASDAQ:GPRO ). I believe $9.00 is probably going to be a meaningful low here. I’m not “calling the bottom”, though frankly I’m tempted to, but this is the deal, I don’t have to. What I’m saying is this: If the stock falls BELOW $9.00, you really don’t want to be long it, because it would be only $9.00 above ultimate support. But as long as the stock stays ABOVE $9.00, frankly, I think you want to stay long. Because this Microsoft deal, like I said, if it was reported any other time than Friday after this MASSIVE, MASSIVE selloff that we’ve had, I think the stock would be up more.
Okay, Amazon ( NASDAQ:AMZN ). Everybody’s talking about this stuff today on CNBC. This is a pullback to the 200-day moving average. This thing has been above the 200-day moving average it seems like almost forever. This was a big extension above. This was another big extension above. Big extension above. All these big extensions above. This is like just barely below it now. The stock is going to go a lot lower, it’s just going to go a lot lower. It’s always been expensive so you can’t say, “Well yes, but as a stock falls down it gets cheaper and so it’s more attractive to money managers.” Okay, that’s true in theory, as things fall they get closer to the ground. But when an expensive stock goes out of favor because money managers aren’t into buying expensive stocks anymore, a 60 point change in price is not going to make this stock less expensive. It’s a little bit like buying ten lottery tickets as opposed to one. Yes, your odds of winning the lottery have just increased tenfold, but they’re still basically about nothing. Similarly, a little pullback here makes the stock less expensive, but it still isn’t cheap, lets just put it that way.
And then the last thing I want to cover here in this video is Facebook ( NASDAQ:FB ). You’ve got kind of a little blow-off top, a real big, massive rally after earnings, out of a sideways consolidation. But your real buy point, if you’re looking to buy Facebook ( NASDAQ:FB ) in this kind of market, stick in a price alert at $98.00, 97.00, 96.00, you’re always more bearish right at the bottom, that’s just the way things are. This is a stock that’s in corrective mode. We’ll see a tradeable bottom sometime this next week. In the meantime I would just want to watch Facebook ( NASDAQ:FB ), know that it is in consolidation. You don’t have to rush here and say. “Oh my gosh! 104.00, that’s my last opportunity I’m going to get to buy this stock.” Trust me, with these expensive tech names, the high growth names, starting to fall out of favor, you’ll get a chance to buy Facebook ( NASDAQ:FB ) at lower levels than here. And frankly, below $100.00 too. When you see this (Facebook), think of that (Amazon). Think of that (Google). They do pullback, and they pullback hard.
3 Stocks I Saw on TV Free Chart