Stocks in Play - January 22nd 2025

TLDR Stocks in Play: NFLX, ORCL, ARM

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis. I’m early posting this morning as I have to attend to some personal matters so will likely miss some of the later morning earnings.

If you find this Newsletter helpful and ever want to say thank you then feel free to Buy Me a Coffee. It’ll inspire me to work faster….

1) Netflix (NFLX) (Rating: B+, Single-Day)

Industry Group: Semiconductors Market Cap: $428b,  Float: 426m, Short Interest: 1.63%, Days to Cover: 2.21, Exchange: NASDAQ

Catalyst: Big important numbers from NFLX. Beat on EPS ($4.27 vs est. $4.18) Slight Beat on Revs, Slight Beat on Operating Margins, Net Paid Subs KPI HUGE Beat. 18.9m vs est. 9.1m. Increased FY Rev Guide. Bullish Management Commentary. My only real negative here with NFLX is that technically it’s overshooting a big multi year channel. I still think it will give opportunity today but may consolidate for quite a while after. Beware of Profit taking at the open.

Honorable Mention to: Stargate Project - The Stargate Project was announced yesterday and led to a big pop in ORCL which is following through this morning pre market. My reading is that a lot of this is repackaged news and isn’t actually as big as it sounds. That being said it is driving Semi’s and Suppliers this morning. ARM, NVDA, CRDO, AVGO etc. While I wouldn’t buy the gap I will look at some key levels in the event of a fade for bounces later in the day. Likely ORCL & ARM. ARM has some nice key levels that are easily identifiable. It also has the direct Softbank Connection.

Market Awareness

And just like that we’re on our way back to All Time High territory….I am cautious of this mornings gap up on the indices. At the very least I expect some early traps for chasers. That being said though I am bullish overall. NFLX laid down the marker for Big Tech and we also have the Stargate news pumping the markets. Though my reading of Stargate and an Elon Tweet suggests it’s just repackaging of existing spending.

We are essentially 5 days up in a row now. It would make sense for this gap to fade early and buying to kick in again later in the day. In this new era we should also be ready for Trump ‘‘Tape Bombs’’ which were common place in his past administration. Not much you can do about it except get used to navigating. I would be quite careful during market hours where you know he is speaking as even an off the cuff remark can cause annoying sell offs.

Top Pick Watchlists:

• Top Picks - November 2024

  • LONG: ALAB, HNST, SNOW, ESTC, RKLB, SMTC, URBN, PLTR, GAP, TSLA, SE, RDDT

• Top Picks - December 2024 

  • LONG: CRDO, MRVL, OKTA, FIVE, RBRK, AVGO

• Top Picks - January 2025 

  • LONG: CEG, FUBO, BLK

Sources & Services I Use in my Trading:

• Finviz - Short Interest, Float, Articles, Fundamentals (Free)

• Benzinga Pro - News Source + News Squawk + Earnings Data (Paid)

• Tradingview - Charting & Scanning (Paid)

• Koyfin - Fundamental Data (Paid)

• EarningsWhispers - Earnings Calendar (Free)

• Tradersync - Trade Journal (Paid)

_{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.}