A Look At How To Trade These 5 Newsworthy Stocks
Photo Credit: Marc Levin
This week we look at how the Forcerank community ranked these newsworthy companies that continue to make headlines. They include Twitter, GoPro, Wells Fargo, Disney and Microsoft.
Twitter (TWTR) | Social Media: Twitter has been the most popular stock over the past 3 days, after rumors broke that management was inching closer to sale. Shares spiked over 20% on Friday alone and have nearly reached 10% gains at the start of this week. The list of possible suitors include heavy hitters like Microsoft, Google, Disney and Salesforce. So far there is no indication that one is more likely than the others to emerge victorious, but there certainly seems to be more legitimacy around these rumors than in the past. Outside of takeover talk, Twitter is gaining steam from the recent slew of newsworthy events. Thursday night football which now streams on the platform is already being deemed a success while last night’s presidential debate was a breeding ground for new tweets. This week, Twitter was ranked third in the social media game, a strong signal that the stock still has room to run.
GoPro (GPRO) | Hardware: The action camera maker has been on quite the run of its own. Last week the stock was up 12% after what was believed to be the successful launch of its first drone, Karma, and the new HERO5 camera. This came shortly after Bank of America initiated coverage with a buy rating on the stock. Those two events have stacked up to what has been a fruitful few weeks. Many closely watched technical indicators insist this current run won’t be coming to an end anytime soon. That includes a bullish crossover of its 50 day MA over the 200 day average, and a new peak in the on balance volume. GoPro was ranked in the second position in the hardware contest, just behind Apple, and first in the most heavily short contest.
Wells Fargo (WFC) | Financials: The bank continues to come under fire following the fake account scandal. Since it was first revealed, CEO John Stumpf has testified on Capitol Hill and fired over 5000 workers. Most recently though, the labor department has agreed to review Wells Fargo and terminated employees are started to coalesce around a few lawsuits against the bank. It’s looking more likely that Stumpf is on his way out or facing a severe financial reprimand. As more events transpire it’s unlikely that the stock will start making gains. Wells Fargo was only ranked above Evercore in this week’s banking contest with shares down about 7.25% in the past 2 weeks.
Disney (DIS) | Media: Disney is one of the handful of companies which reportedly have Twitter on its radar. Disney has struggled in recent quarters due to the rise of streaming video and cord cutters. This has played a role in the downturn of its premier sports brand ESPN. If Disney truly believes live sports will potentially be disrupted by streaming services, then Twitter could be a smart acquisition. Twitter’s deal with the NFL and other broadcasts showcases its dedication to providing live to the minute video.
Microsoft (MSFT) | Large Enterprise Software: Microsoft, like Disney, is one of the handful of companies in pursuit of Twitter. Microsoft is only months removed from its shocking $26 billion acquisition of LinkedIn, making these rumors even more surprising. Its yet to be seen how LinkedIn will fit within Microsoft but many have assumed it will be tied to its CRM software. In all likelihood a Twitter takeover would serve a similar function. Microsoft was featured in two contests this week, social media and large enterprise software, and ranked in the top 5 of both.
Disclosure: Each week, Forcerank runs a variety of games covering different industries. What we have found, is that the highest ranked companies in their ...
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