💰 New Alpha | SPOT/U/PEP Set to Soar in Market Recovery 🚀
💰 U.S. market rebounded while Mag 7 struggled.
💹 $Spotify Technology S.A.(SPOT)$ / $Unity Software Inc.(U)$ / $Pepsi(PEP)$: Once oversold due to market sentiment are likely to recover.
📣 Stay tuned, supercharge purchasing power through CashBoost!
| Market recap
On Monday, all three major U.S. stock indices closed higher, led by gains in the semiconductor sector, while the Mag 7 struggled.
$NASDAQ Golden Dragon China Index(HXC)$ increased by over 4%, achieving a closing high not seen in 37 months, with $Alibaba(BABA)$ rising by 4.6% and $XPeng Inc.(XPEV)$ gaining over 3%.
Megacaps - The Hateful Eight
Is the era of the Mag 7+AVGO coming to an end? $S&P 500(.SPX)$ has recouped some losses; however, the megacaps contributed minimally to this rebound. Among tech stocks, semiconductors led the way, with $Intel(INTC)$ and $Advanced Micro Devices(AMD)$ shining as the brightest stars. In contrast, $NVIDIA(NVDA)$ has faced setbacks just ahead of the GTC event, raising deeper concerns for investors. Given the multitude of challenges currently confronting these giants, it remains uncertain whether they can still serve as a market bellwether.
Momentum - China AI
$Alibaba(BABA)$ is going all-in on AI. What are the implications? This AI initiative is being spearheaded entirely by founder Jack Ma, with the CEO advocating for a complete AI integration across existing businesses and encouraging the adoption of more AI technologies. Reports suggest that the company is developing AI-native applications, potentially releasing a "killer app" within the year.
Top Movers - Quantum, Biotech
Quantum computing has surged ahead, especially before Quantum Day. March 20 marks the first Quantum Day at NVIDIA's GTC conference, where investors are hopeful for significant technological breakthroughs to fuel the market. High expectations have driven related stocks, with $D-Wave Quantum Inc.(QBTS)$ rising over 10%.
Healthcare stocks led the gainers, with wearable heart device $Kestra Medical Technologies Inc(KMTS)$ up 16.5%, new weight-loss drug $Metsera Inc.(MTSR)$ increasing by 12.6%, skin disease treatment $Arcutis Biotherapeutics Inc.(ARQT)$ rising by 12.3%, and growth hormone $Ascendis Pharma A/S(ASND)$ up 10.4%.
In the Asian market, $Byd Company Limited(002594)$ has launched its fastest charging system, and $POP MART(09992)$ has benefited from China's consumer stimulus policies, making it a stock to watch.
| Japan and South Korea ETFs
On Monday, $Direxion Daily South Korea Bull 3X Shares(KORU)$ rose by 9% and $Franklin FTSE Japan ETF(FLJP)$ increased by nearly 1%.
Going somewhere. U.S. retail sales in February saw only a 0.2% increase, raising concerns about consumer weakness and contributing to the recent market adjustments. In this context, Wall Street has turned its focus to overseas markets.
On March 18, $Nikkei 225 Index(N225.JP)$ climbed by 1.2%, and Warren Buffett's $Berkshire Hathaway(BRK.B)$ increased its holdings in Japan's five major trading companies, significantly boosting their stock prices. The Bank of Japan is also expected to raise interest rates again.
Today, South Korea's KOSPI index rose by 0.06% after a 1.7% increase on Monday, driven by expectations from the GTC, with major player Samsung Electronics rising by 5.3%, and Hanwha Aerospace seeing a significant jump of 6.8%.
| Drop the beat
Recent performance indicates a rotational trend among various sectors of the U.S. stock market. Sectors that were previously oversold due to market sentiment are more likely to recover, presenting better profit opportunities.
$Spotify Technology S.A.(SPOT)$
The earnings report exceeded expectations. The company saw substantial improvements in sales and net profit during the fourth quarter, marking a shift from net losses to significant profits.
Additionally, Spotify's strategic alliance with Warner Music Group aims to strengthen commitments between artists and fans, boosting investor confidence.
Given the overall market volatility, Spotify's stock still retains upward momentum.
$Unity Software Inc.(U)$ 's stock price has rebounded from recent lows.
The RSI indicator has shown rapid improvement. As a momentum oscillator, the RSI helps identify market turning points, effectively aiding investors in finding buy and sell opportunities.
When the RSI is below 30, it indicates oversold conditions, while a return to 50 signals neutrality. Currently, the company’s RSI is moving from oversold towards neutrality, offering a compelling investment value.
Beverage giant $Pepsi(PEP)$ is pursuing acquisition opportunities, acquiring the soda brand Poppi for $1.95 billion.
The Poppi brand is valued at $400 million in retail channels and has shown impressive growth, doubling in sales over the past four weeks, with growth expected to accelerate as the brand scales.
Similarly, the company's RSI is in a neutral range, providing a safety margin for investors.
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