Stocktwits Top 25 – Week 36 📉

Good afternoon everyone and welcome to the Stocktwits Top 25 Newsletter for Week 36, 2020.

The Stocktwits Top 25 reports the top 25 performing stocks in the S&P 500, Nasdaq 100, and Russell 2000 year to date (YTD) and tracks their performances over time.

Here’s your Stocktwits Top 25 Lists for Week 36:

ST Top 25 S&P 500

This week was a bloodbath. Only 3 of the 25 names in the ST Top 25 S&P list closed higher.

Freshman to the list, Fedex Corp. was the biggest winner. $FDX closed up 1.9% last week.

Paypal, Abiomed, ServiceNow, and Salesforce all fell more than 5%. See more on Abiomed below.

$CARR fell a percent but still holds the top spot ahead of $NVDA.

The Stocktwits Top 25 S&P 500 Momentum Meter closed down 3.16% while the S&P 500 dropped 2.31%. The differential of -0.85% indicates that the top stocks in the S&P 500 were weaker than the index.

The Big Cap Nasdaq 100

Last week 22 out of the 25 names in the ST Top 25 Nasdaq 100 closed green.

This week, 22 out of the 25 names closed red. Call it a flip-flop.

Zoom Video ripped 23% following its second quarter earnings report. $ZM jumped back into the #1 spot. It is the Top Dawg of Week #36.

DocuSign and JD.com were the only other winners last week.

Tesla, MercadoLibre, Paypal, Microsoft, and Splunk all fell over 5%.

The ST Top 25 Nasdaq 100 Momentum Meter dropped 2.87% for week #36 while the full Nasdaq 100 lost 3.06%. The 0.19% differential suggests the top stocks outperformed the full index by a slim margin.

Given that the Momentum Meter is an equally weighted metric, if you remove $ZM we’d get a reading of -3.98%.

S/O $ZM.

Small-Cap Russell 2000

Only 3 stocks in the ST Top 25 R2K list closed higher. 3 is the magic number in Week 36.

Nautilus and Workhorse Group both closed up double digits. Read more on them below.

CarParts.com was the worst performing stock on the list. $PRTS fell at least 4.5% every day last week and was down nearly 30%. 🤮

$OMI and $IRTC were Freshmen this week. Can they last another week? Place your bets…

The ST Top 25 R2K List’s Momentum Meter sank 8.88% while the full Russell 2000 only fell 2.73%. The 6.15% differential suggests that the top stocks were significantly weaker than the index.

ST Top 25 TOP DAWG OF THE WEEK 🐶

The ST Top 25 Top Dawg of the Week for Week 35, 2020 is Zoom Video Communications Inc.

The cloud-based software company reigns as Top Dawg once more thanks to a tremendous Week #36 showing. The stock soared 23.6% following a blowout Q2 earnings report Monday evening.

$ZM leapt 40.78% on Tuesday.

The company had 370,200 business customers, up 40% from April’s quarter of 265,400 business customers. Revenue grew a cosmic 355% YoY to $663.5 million. Its market cap is now $129 billion, worth more than IBM… What a year it’s been.

Here are the results:

EPS: $0.92 vs $0.45 est.
Revenue: $663.5M vs $500.5M est.

Zoom founder and CEO, Eric Yuan, had this to say:

Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases. Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355% year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281% to 284% increase year-over-year.

The YTD chart is sickening. Opening 2020 in the $60s, now trading in the upper $300s…

The stock is up 443% YTD.

The Winners 📈

△ #10 R2K – Workhorse went to work this week. The stock was up 20.32% and moved from #11 to #10 on the ST Top 25 R2K list.

$WHKS has been on quite a run in 2020 thus far. It’s up 550% YTD but has been going sideways for a number of weeks. Is it ready for the next leg up?

Workhorse’s vehicles operate in a market estimated at $18 billion and are in a unique position to win the US Postal Service contract for upgrading its delivery fleet of 165K vehicles.

Analyst Colin Rush had this to say, “Workhorse’s HorseFly drone is the only Unmanned Aerial Systems (UAS) that can be launched remotely from a last-mile delivery vehicle,”. It is protected by patents with the ability to possibly lower last-mile delivery costs.

Here’s the daily chart visualizing $WKHS’ dominant 2020.

△ #7 N100 – Nautilus Inc stayed in shape this week thanks to a 13.5% gain. The stock retested the $16 level that hadn’t been seen since 2018. $NLS gained 3 spots on the ST Top 25 R2K list moving from #10 to #7.

$NLS jumped 17% on Tuesday and another 13% on Wednesday after William Blair analyst S. Zackfia placed an outperform rating on positive profit potential. She thought the company would increase revenue to $600 million by 2020, much greater than this past year’s revenue of $374 million.

Here’s a weekly candlestick chart showing levels not seen since 2018.

The Sinners 📉

▼ #12 S&P 500 – ABIOMED, inc. There’s an adage that goes something like this, “the trend is your friend, until the end when it bends”. This may be the case for ABIOMED after it dropped 9% this week.

$ABMD had been on quite an impressive run throughout 2020 without much selling pressure. This all changed as the stock faltered 6% on both Thursday and Friday on above average volume.

Here’s the YTD chart arching over.

Is this selling here to stay? It’s 2020, who knows anymore! The stock is still ranked #12 on the ST Top 25 S&P 500 list thanks to a 62% YTD return.

▼ #6 N100 – MercadoLibre, Inc couldn’t escape the wrath of the Naz. The Latin American e-commerce giant got beat up late in the week just as the tech heavy Nasdaq’s bottom fell out. The stock fell 8% but remained in the #6 spot on the ST Top 25 N100 List.

Weakness was seen in other retail giants: $AMZN -3.2%, $EBAY -3.17%, $BABA -2.63%.

$MELI took one on the chin Thursday down 9%. On Friday, the stock traded down 8% intraday until it bounced right at the $1,000 level. It then recouped the losses to close down just 0.34% on Friday.

Here’s the $1k bounce…

▼ #5 R2K – Overstock.com. Overstocked or oversold? Overstock.com traded down 4 out of 5 days this week and lost 30.5%! This week’s beating lowered Overstock’s ranking on the ST Top 25 R2K list from #3 to #5.

Not to add salt to the wound, but $OSTK has been green only twice in the last two weeks. Ouch. It now trades down 45% from its Aug. 20 high.

On a brighter note, Overstock’s daughter company tZERO started commission free trading for its blockchain-powered trading system earlier this week.

tZERO CEO Saum Noursalehi had this to say:

At tZERO, we are committed to fostering the industry adoption of digital securities and believe that free trading on registered digital securities will be a more compelling model for attracting broker-dealer subscribers and investors. We are excited for tZERO ATS to introduce this change for Overstock’s preferred digital dividend shares, OSTKO, and other relevant securities. We look forward to accelerating the adoption of its platform.

▼ #3 N100- DocuSign, Inc. was positive for the week but there’s more to it than what meets the eye. The computer software company reported solid earnings after the close Thursday but proceeded to fall 10.64% Friday. $DOCU still holds the #3 ranking on the ST Top 25 N100 List.

Here are the earnings numbers :

EPS: $0.17 vs $0.08 est.
Revenue: $342.2M vs $318.6M est.

Profit taking or too much of a run up into the report? Whatever it may be, it wasn’t an ideal reaction.

Here’s the daily chart illustrating the late week sell off.