Stocks rallied on June 1, with the S&P 500 rising by 38 basis points to close at 3,055. It was, for the most part just a slow grind higher all day, after the ISM manufacturing data came in a little bit worse than expected, but revealed no hidden surprises.
Nothing has changed from a technical perspective, with the next level of resistance around the 3,080-3,100 region.
The NASDAQ composite for better or worse has filled the gap from its February 24 decline.
Interestingly, the tech index wasn’t able to get past last week’s highs.
Micron Technology Inc
Micron (NASDAQ:MU) traded lower again yesterday; this comes as a bit of surprise to me, because this is one of the few companies I can think of that has boosted its guidance. But then again, not much makes sense. It should probably, at the very least, test the uptrend at $44.
Micron Inc Daily Chart
An article in the Wall Street Journal noted that Starbucks (NASDAQ:SBUX) does expect sales to bounce back until at least the fall. To me, that seems kind of obvious, maybe it is to the stock too, because it hardly moved in after-hours trading. The stock has what looks like a strong double bottom at $72.25, with the potential to break out to $83.50.
Starbucks Daily Chart
Zoom Video Communications Inc
Call me crazy, but how can a company have a $50 billion valuation when it forecast to have sales of $1.6 billion in 2023? Zoom (NASDAQ:ZM) trades at almost 31 times 2023 sales estimates, 147 times 2023 earnings estimates, 147 times EV/EBITDA in 2023, and has a PEG ratio of 4.49 in 2023. Now I’m a growth investor, I owned Netflix (NASDAQ:NFLX) for years, and I still even own Tesla (NASDAQ:TSLA) since 2014! Man, when Tesla had a valuation of $50 billion, the shorts were all over it. Zoom, ahh, it is the future, because no one else can create a video chat app, Nah… The stock broke out on the upside yesterday, who knows how high it can go tomorrow? Man, the pressure will be on tomorrow night when they report results, that’s for sure.
Zoom Video Inc Daily Chart
DocuSign (NASDAQ:DOCU) has a market cap that is $25 billion. This one though, is a bargain compared to Zoom. It trades for only 13.9 times 2023 sales estimates, 121.4 times 2023 earnings estimates, 78 times 2023 EV/EBITDA, with a 2023 PEG ratio of 2.35. Stocks that go up in straight lines, however, usually don’t end ever well, but what do I know? Maybe it is different this time.
Fundamentals, those are so 2019. Everyone knows fundamentals don’t matter anymore.
Docusign Inc Daily Chart