With tariff fears, inflationary concerns, and the potential for recession, stocks have been clobbered. Since the start of February, the Dow Jones dropped about 3,400 points. The tech-heavy NASDAQ fell close to 3,000 points, as the S&P 500 shed about 600 points.
It’s ugly out there.
So, it really comes as no real shock that stocks like MercadoLibre (NASDAQ:MELI), Atlassian (NASDAQ:TEAM) and MicroStrategy (NASDAQ:MSTR) are getting beaten up, too.
Shares of MercadoLibre are down about 5%, or $105 on the day.
This comes just weeks after JPMorgan raised its price target by $350, after Morgan Stanley raised its target by $250, after BTIG raised its price target by $300, and after Bank of America analysts raised their price target on MELI by $500.
While there’s no new news to support the $105 pullback, MELI is becoming oversold at support at its 200-day moving average. It’s also now sitting at triple bottom support dating back to early February. At the moment, we’d wait on the sidelines with this one. At the same time, MELI is still fundamentally strong, with consistent beats on its top and bottom lines.
Atlassian is down about $8.85, or 4% on the day.
Not helping, there’s news director Scott Farquhar just sold about $1.8 million worth of stock. CEO Michael Cannon-Brookes also sold $1.86 million worth of the stock.
However, we wouldn’t read too much into insider selling though. Many times, these are planned sales, or the money is needed for personal reasons.
Analysts at Jefferies also just lowered its TEAM price target by $70 a share to $330. As noted by TheFly.com, “The firm is lowering price targets across its U.S. software coverage to account for recent multiple compression amid early signs of softening macro factors impacting deal decisions across tech.” Analysts at Truist also lowered their TEAM price target by $50 to $300. The “firm is lowering its estimates to reflect a lower visibility environment for business leaders,” added TheFly.com.
MicroStrategy dropped to a low of $273 on the day thanks to an early morning dip in Bitcoin.
However, with Bitcoin now up about $1,033, MSTR did manage to go green. That’s because wherever Bitcoin goes, related stocks like MSTR are sure to follow. After all, MSTR now owns 506,000, or more than 2% of the total Bitcoin market.
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