Stocks in Play - February 4th 2025

TLDR Stocks in Play: PLTR, SPOT, PYPL, FOXA

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Irish Born Investor
February 04, 2025 • Estimated Reading Time: 5 minutes

Stocks in Play - February 4th 2025

TLDR Stocks in Play: PLTR, SPOT, PYPL, FOXA

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

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1) Spotify Technology (SPOT) (Rating: B, Single-Day)

Industry Group: Technology Services, Market Cap: $110b, Float: 139m, Short Interest: 4.7%, Days to Cover: 2.5, Exchange: NYSE

Catalyst: Beat on EPS ($1.76 vs -$0.36), Solid Beat on Revs, It’s all about the KPI’s with SPOT and they beat on these. Operating Income Beat, Premium and Ad Subs were beats. Beat on KPIs for the guide, Subs, Op Income and Revs. Bullish management commentary on continuing to grow margins which is the single most watched KPI for SPOT. Stock was above $600 this morning and certainly not neglected so I will be tactical if trading this as the spread can also be somewhat wide.

2) Palantir (PLTR) (Rating: B+, Single-Day)

Industry Group: Technology Services, Market Cap: $225b, Float: 1.8b, Short Interest: 4.8%, Days to Cover: 1, Exchange: NASDAQ

Catalyst: Solid Beat on Revs, Strong Operating Margins, Beat on Guide. This is an obvious play for today. It is a cult stock so can always move more than you think however I think there will be plenty of people trying to fade it at $100 today. The Market Cap is now $225b and the float is huge on this at 1.8b shares. I will be looking at it for sure but I am looking at day trade only on it.

Honorable Mention to: PYPL - Solid Earnings Report. Stock negative 5% Pre Market. This is a highly owned consensus GARP (Growth at Reasonable Price)/Value name now. There is nothing in this report that shareholders will be overly negative about. Beat on Revs and EPS. Large Share Buyback Plan. I think this is a decent candidate for a Red to Green move today. There are some clear levels on the chart and a gap fill to work against. FOXA - Solid earnings beat, Revs increasing 20%+ YoY. Topical as the company is friendly to current US Admin. One I’m watching today added to the list late.

Market Awareness

Crisis averted! What a shock. Yesterday was a perfect example of what we should learn to expect for the next few years with this administration on every topic. Similar to the previous Trump presidency there is very rarely follow through on these sorts of threats once he has a phone call or a meeting he likes to get a ‘‘deal’’. It’s the same formula on repeat. We must respect the market reactions and the narrative but don’t get sucked into the media hysteria around it.

For all that has seemingly happened this year we are still just stuck in a range. Let’s see if we can get through the rest of the week with just earnings to contend with rather than international trade wars. I’m taking today as a normal day. Still not a strong Swing environment but have some setups in my delayed reactions list that I may be willing to test here.

After Hours I’m Watching: AMD, GOOG, SNAP, CMG, ENPH, AMGN (Earnings)

Tomorrow Morning I’m Watching: UBER, DIS, NVO (Earnings)

Top Pick Watchlists:

Sources & Services I Use in my Trading:

PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.

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