Many of our stocks are down 5-8% today in comparison to the rest of the market (Okta is down over 11).
Does anyone have any idea why?
Thanks in advance!
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The Saas stocks get hammered when the market is in decline, but they tend to recover quickly.
Okta had a “downgrade” from KeyBanc, overweight to “sector weight” today - the verbage indicated the analyst was still bullish, but thought that the future good-news was already worked into the price.
David
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the future good-news was already worked into the price. well around 10% less is worked into the price this AM. I bought a little more.
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The decline is reportedly due to a temporary breakdown in the China trade talks which has disproportionately hit our high flying sector. I suspect some institutional investors are using it an excuse to lock in some early YTD profits. I used it as an opportunity to add a bit more TWLO and ESTC.
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Did the market turn against SaaS today?
No.
Does anyone have any idea why?
Si.
Denny Schlesinger
Reminds me of a Mel Blanc skit https://www.youtube.com/watch?v=O9s8U0O0XPE
Dow Tumbles as Rally Spurred by Trade Deal Hopes Fades
https://www.thestreet.com/markets/dow-rises-as-reports-say-u…
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Hi,
Suntrust downgraded OKTA from buy to hold but raised PT from $74 to $90.
https://seekingalpha.com/news/3439408-suntrust-downgrades-ok…
Steve
Can someone explain this to me? It appears they had a buy recommendation with a target price below market. Then downgraded to hold, but with a new target price above market. I don’t get it.
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Can someone explain this to me? It appears they had a buy recommendation with a target price below market. Then downgraded to hold, but with a new target price above market. I don’t get it.
Seems pretty straight forward.
The new price target supports holding, but no buying until the company “catches up” with price, but not willing to miss a sudden increase (or continued rise) by selling. Thus a hold recommendation, which from the “buy” is a “downgrade” but in reality, it is just a not big interest in buying additional shares at the current price ($86 last week)…
Make more sense?
Well, not to those that believe in the company’s future…
JI
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