1 share to buy, 1 to throw away when the markets open: CrowdStrike, Pinduoduo

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Shares on Wall Street rose on Friday, with the close at another new high after the latest report spurred optimism about the US economic recovery.

The upcoming shortened holiday week – which will see the US stock markets close on Monday for Independence Day – is expected to be quiet on Wall Street, with little data and moderate pre-earnings trading.

Whichever direction the market may take, below we highlight one security that may be in demand and one that may experience further decline.

Remember though, our timeline is fair for the coming week.

Share to buy: CrowdStrike

One of the largest and most sophisticated in history continued to expand over the weekend, affecting thousands of businesses around the world.

This could lead to more positive action for cloud-based cybersecurity firm Crowdstrike Holdings (NASDAQ :), whose technology is used to detect and prevent security breaches.

The ransomware gang known as “REvil” is suspected of hijacking widely used desktop management software provided by Miami, Florida-based technology provider Kaseya. The companies involved had files encrypted and ended up with email messages demanding ransom payments of thousands or millions of dollars.

In a statement on Saturday night, the FBI said it was investigating the ransomware attack in coordination with the U.S. Agency for Cybersecurity and Infrastructure Security.

CrowdStrike Daily Stock Chart
CrowdStrike Daily Stock Chart

CRWD stock, which hit a new record high of $ 260.79 on June 28, closed Friday’s session at $ 252.59, earning the Sunnyvale, Calif.-based cybersecurity specialist a valuation of $ 57 billion.

Shares of the leader in endpoint security have risen 19% year-to-date, reflecting growing demand for its cloud-based Falcon cybersecurity platform.

CrowdStrike reported significant decline and revenue when releasing its fiscal first quarter financial results on June 3, benefiting from increased spending on cybersecurity by businesses.

The fast-growing tech company, which has nearly half of Fortune 100 companies as customers, said it had a total of 11,420 customers at the end of its last quarter, up 82% from the previous year.

CrowdStrike is expected to outperform over the coming week, as it appears to be a major beneficiary of increased cybersecurity spending amid the surge in cyber attacks.

Stock to empty: Pinduoduo

Shares of Shanghai-based e-commerce giant Pinduoduo (NASDAQ 🙂 are expected to hold back in the coming days as investors worry about the negative impact of Chinese authorities’ scrutiny of the flat economy. -booming shape of the country.

PDD stock, which has fallen 11% over the past month and 33% year-to-date, closed at $ 119.20 at market close on Friday. It is now more than 40% below its all-time high of $ 212.30 reached on February 16.

At current levels, Pinduoduo has a market cap of $ 149.4 billion, making it the third largest e-commerce company in China by annual revenue, behind Alibaba (NYSE 🙂 and JD.com (NASDAQ :).

Daily PDD chart

The latest negative news came after China’s market regulator released draft rules to punish illegal pricing activities by e-commerce platforms, such as offering large discounts as well as the practice of charging different prices. based on the purchasing behavior of customers.

The rules are the latest in an ongoing effort by the Chinese State Administration for Market Regulation (SAMR) to curb tech giants that play a dominant role in China’s consumer sector.

Ultimately, market participants fear that Chinese authorities will step up further attempts against the country’s burgeoning e-commerce sector, including imposing fines and launching antitrust investigations.

In view of this, shares of PDD are expected to remain on the defensive in the days to come as the online marketplace platform provider faces difficult challenges ahead.

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