Ticker Reports for February 7th
3 Reasons to Treat AMD's Drop as an Entry Opportunity
Investors would be forgiven for thinking Advanced Micro Devices Inc (NASDAQ: AMD) has been trading well in recent months, as investors continue to bet on the AI revolution and any tech company with exposure to data center growth. However, a sharp 6% drop following AMD's latest earnings report added to the stock's multi-month downtrend.
Though AMD smashed analyst expectations on the headline numbers, its shares dropped as much as 10%. Still, the broader market remains just below all-time highs, and risk-on sentiment is favoring stocks like AMD that could be on the verge of playing catch-up.
For those of us on the sidelines, this pullback could be the golden buying opportunity we've been looking for. Let's jump in and take a closer look.
1. Q4 Earnings Beat Expectations, But AMD Shares Fell 6%
For starters, let's take a look at AMD's fundamental performance. It was a mixed bag throughout 2024, with no consistent run of topping analyst expectations. This likely had a large influence on the stock's lackluster performance.
Therefore, this week's Q4 report would have been frustrating for investors. AMD topped analyst expectations on both EPS and revenue, yet shares finished down 6% on Wednesday. This was despite the company posting a record Q4 revenue print and management's forward guidance coming in hot.
It looks like a slowdown in data center growth spooked investors who are yet to be convinced that AMD can live up to its potential. Still, revenue was up nearly 25% year-over-year, which is not bad for a stock that's down nearly 40% in that timeframe. For investors who love an underdog, there's a lot to like about AMD's fundamental performance when compared against its share price.
2. Mizuho, Wedbush, Susquehanna, and Stifel Reiterate Bullish Ratings
Building on this theme, multiple bullish updates from analysts suggest Wall Street remains firmly behind AMD's growth story. In the aftermath of Tuesday's report, Mizuho, Wedbush, Susquehanna, and Stifel Nicolaus all reiterated their Buy or equivalent ratings. Of all the analyst updates that MarketBeat tracks, not a single firm downgraded the stock despite the selloff.
The common trend among the updates was AMD's strong positioning in AI and gaming chips as key drivers for the company moving forward. The refreshed analyst price targets ranged up to $162, meaning from where the stock closed on Wednesday night, pointing to a targeted upside of some 40%. Again, any bargain-loving investors should be sitting up and paying attention if they aren't already.
AMD Needs to Prove It Can Maintain Momentum
Of course, it must be acknowledged that data center growth is considered critical for companies like AMD right now, and any slowdown is worrying. Investors should look for the stock to prove this isn't the start of a downtrend in the coming quarters.
It's also hard to ignore the fact that shares have struggled over the past 12 months, even as some of AMD's tech peers and competitors have climbed to fresh highs. And while analysts remain bullish, many of them have adjusted their price targets lower following Tuesday's report. However, with some of the revised targets still pointing to a 40% upside, there's not much to complain about.
3. A Favorable Risk-to-Reward Setup for Long-Term Investors
So, what does that say about where the stock is trading today? Factoring in yesterday's dip, AMD's relative strength index (RSI) currently sits at 38, indicating shares are already in oversold territory and could soon become extremely oversold if they dip below 30.
In addition, shares are approaching a key area of support, which could create a strong foundation for a comeback rally. For those of us who are happy to lean into record revenue prints, analysts' bullish outlook, and technical setup, this has the makings of a fantastic entry opportunity.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
Do this Before Elon's Reveal on April 23rd
Elon's newest tech could pay you an extra $30,000 a year — while you sleep.
It's smaller than a quarter but designed to power a $9 trillion AI revolution.
And I've identified a little-known supplier Elon is depending on to make it all happen.
High-Momentum ETFs Leading the Market This Year
The S&P 500 experienced an impressive return of close to 25% in 2024, significantly outpacing its average annual growth rate over the last several decades, which is much closer to 10%. After another strong year for the broader market, investors may have entered 2025 with outsized hopes that this momentum will continue. Fortunately, though there is no guarantee the market will continue to rally going forward, there are a number of exchange-traded funds (ETFs) that have experienced massive upswings in the first weeks of the year. As of February 5, 2025, barely a month into the new year, each of the funds below has risen by at least about 14% (and sometimes quite a bit more) year-to-date, while the S&P 500 has climbed just over 3% in the same period.
STKD Bitcoin & Gold ETF: Dual Focus to Balance Risk
Launched in October 2024, the STKD Bitcoin & Gold ETF (NYSEARCA: BTGD) is the newest fund on our list. BTGD is an example of a so-called stacked ETF, a fund that focuses simultaneously on two assets with a common theme. The goal of BTGD is to provide double exposure to both Bitcoin and gold—the fund's provider suggests that each dollar invested is meant to provide a dollar of Bitcoin exposure and a dollar of gold exposure.
An interesting aspect of BTGD is it aims to achieve this dual focus without investing directly in either of the assets themselves. Thus, BTGD does not hold physical gold or bullion, nor does it invest directly in any digital assets. Rather, BTGD invests in futures and exchange-traded products in both gold and Bitcoin. Investors may be drawn to the counterbalance that each of these assets provides compared with the other; Bitcoin is highly volatile and remains in a murky regulatory space, while gold is a safe haven metal and a historical store of value.
Thanks to its active management, BTGD carries a reasonably high fee of 1.0%. However, investors who see that the fund has returned 13.6% year-to-date just over a month into 2025 may be willing to spend a bit extra for the fee.
Simplify Propel Opportunities ETF: High Fee for Unique Expertise
With an expense ratio of 2.54%, the Simplify Propel Opportunities ETF (NYSEARCA: SURI) comes at a steep price. This actively managed fund has enjoyed returns of 18.1% from the start of 2025 through February 6, though, perhaps making the high fee worthwhile.
SURI focuses on biotech, pharma, healthcare technology, and life science firms that are "overlooked by investors." The fund aims to use the expertise of sub-adviser Propel to identify promising healthcare sector firms that investors without deep knowledge of the area might not see.
The fund has a relatively narrow basket of 22 names as of the date above.
Range Nuclear Renaissance Index ETF: Capitalizing on Clean Energy Push
The Range Nuclear Renaissance Index ETF (NYSEARCA: NUKZ) targets companies involved in the advanced reactor, utilities, construction & services, and fuel segments of the nuclear energy industry.
With a substantial increase in demand for clean energy expected to continue into the future, nuclear sources are gaining popularity.
NUKZ has the lowest expense ratio of any on our list, at 0.85%, and a year-to-date return of more than 21% as of February 6. Investors should note that it is fairly concentrated in a few names—the top three positions account for about a third of all assets.
AdvisorShares Psychedelics ETF: Drug Potential for Mental Health
An unexpected top performer early in 2025 is the AdvisorShares Psychedelics ETF (NYSEARCA: PSIL), which has returned a whopping 37.2% so far this year. The fund invests in biotech, pharmaceutical, and life sciences companies with significant revenue or other focus on the development of psychedelic drugs with potential applications in the mental healthcare industry.
PSIL is an actively managed fund but has a reasonable 0.99% expense ratio.
PSIL's unique focus means that it invests in some uncommon names in a niche portion of the biotech and pharma industries. This fund can thus offer investors exposure to companies that are not likely to show up in any other ETF portfolios. Based on returns so far this year, it appears that PSIL's strategy has paid off.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
Is Starlink Set For The Largest IPO In History?
He turned PayPal from a tiny, off-the-radar startup… to a massive $64 billion giant.
Then, he did it again with Tesla… which is up more than 19,500% since 2010.
For perspective, that turns $100 invested into almost $20,000!
How Alibaba Stock Could Defy Trade Tariffs and Surge Higher
Investors have had to deal with the recent stock market volatility that has come along with President Trump's latest round of tariffs. While these are leaving a lot of uncertainty across the economy and other companies that have shown weaker stances in their most recent quarterly earnings, one question is still left unanswered.
That is, whether these tariffs will affect overseas stocks similarly to how they have affected United States stocks so far. There is now a particular focus on Chinese stocks and Asia’s powerhouse economy. The reality is that these tariffs will most likely affect China’s trade volume with the United States; however, not all companies will be terribly affected by this issue.
When it comes to the country’s technology sector, the concern is more about whether data from American citizens is being accessed by these Chinese firms, as seen by the recent debacles in the TikTok platform. But here’s where investors can feel safe: Alibaba Group (NYSE: BABA) not only offers a great risk-to-reward ratio as a safety, but also its broadly international consumer business and cloud computing branches allow it to mitigate the impacts these tariffs could have.
Alibaba Stock’s Risk-to-Reward Ratio
Even though the stock has recovered to as much as 85% of its 52-week high, Alibaba stock is still behind its American counterparts. Investors can see this through shares of Alphabet Inc. (NASDAQ: GOOGL), Meta Platforms Inc. (NASDAQ: META), and even Amazon.com Inc. (NASDAQ: AMZN).
After a pretty steep earnings decline in some of these American technology stocks, they are still trading within 10% of their 52-week highs, not to mention close to their all-time highs. Alibaba’s all-time high price is just over $300 a share, so comparing these two sets of companies can lead investors to one conclusion.
That conclusion is that Alibaba still holds one of the most favorable risk-to-reward ratios in the global technology market, one that has attracted some of Wall Street’s best investors in recent quarters. Right now, both Michael Burry and David Tepper hold Alibaba as their largest position in their respective portfolios, and there’s a reason for that.
Relative Immunity to Tariffs
Alibaba does a lot of business in the United States, where customers often buy from AliExpress due to the relatively cheaper offers and bulk business model. However, the company is also strongly positioned across Asia and the Middle East, even in Europe and Latin America.
That means that although tariffs might affect consumer buying trends from Alibaba, overall, it will be a small dent in the company’s bottom line and volumes. More than that, Alibaba is much more than a retail and wholesale company; it has its hands on the growth of cloud computing in these nations as well.
With the recent DeepSeek and NVIDIA Co. (NASDAQ: NVDA) debacle, it’s not too far-fetched for investors to imagine a world where Alibaba provides DeepSeek and other artificial intelligence platforms with the infrastructure to develop and train these models.
Across Asia and other locations, Alibaba has also set up shop via data centers. If Amazon’s success can be attributed to having access to consumer data, allowing for trend and taste discovery, then Alibaba can take that model to a much bigger scale. And yet, current valuations reflect none of these bullish factors.
Unbelievable Discounts for Alibaba Stock
With this in mind, investors can look to Alibaba’s forward price-to-earnings (P/E) ratio of 9.8x today as a steep discount to its American peers, who are valued at a 23.4x P/E average. Not only were Burry and Tepper willing to buy into this discount, but other market players also shared their optimism.
Analysts from Citigroup, for example, decided to reiterate their Buy rating on Alibaba stock as of January 2025, this time placing a $138 per share valuation on it. From today’s low level, this new valuation would call for up to 37.5% upside, giving investors one of the best plays to navigate this new tariff volatility.
Ultimately, the company’s management also understands just how cheap this business is today. Through a $25 billion stock buyback program, the company insiders are sending a message to the entire market. Buying back what would be worth 11% of the company’s market capitalization is a bold statement to indicate how cheap Alibaba is today.
All told, tariffs don’t look like they will impact much of Alibaba’s business, which is heavily discounted in valuation multiples compared to how much it can grow in the coming years.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
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