The bears are making something of a stand.
US stock markets opened higher but have reversed and now the Nasdaq is lower by 0.5%. It’s a mixed bag in terms of names and memes as Western Digital remains up 6.5% (though it was up 10%) and Intel falls 5.7%. The latter name is carving out something of a double top in a move that could be a warning sign of the tech-driven meme stocks.
On the positive side, travel names continue to bask in the post-Hormuz glow with oil prices down another $3 today. Expedia is up another 2.3% after a big gain yesterday and airline stocks are higher led by America, up 4.5%.
The names that are dropping today include Tesla, which is lower by 2.2%. SpaceX is also very volatile today. It was up 20% to $225 but that big figure seems to have triggered some profit taking and it’s down to $206, though still up 7.4% on the day. Options begin trading in it today and that’s going to add to the madness. It’s market cap is currently slightly below Amazon’s.
Notably, two of the softer names today are Broadcom and Nvidia, which are AI and chipmaking giants. Both are among the worst-performers in the SOXX chipmaking index this year, which is a sign that the market is looking for torque, not value. That’s late-stage behaviour.
Another loser today is Netflix, which is down 3.8% after it lost out in the Roku bidding war to Fox. It’s now nearly roundtripped the jump after it bowed out of the Warner Brothers’ bidding war. I wonder if the market is starting to price in disruption via AI or YouTube rather than rewarding the company for disciplined capital allocation.
Consensus earnings for 2026 and 2027 is 3.58/3.88 which puts shares at 22x/20x — not exactly rich if you think the model is defensive
