Q2 STOCKS TO BUY

Analyst Downgrades Yelp Stock After Earnings

Ford Motor stock is extending its lead in double-digit territory

Managing Editor
May 10, 2019 at 2:57 PM
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The Dow has erased all of its earlier losses to trade near breakeven, while investors are also watching Uber's (UBER) public trading debut. Also in focus this afternoon are premium retail investor Cool Holdings Inc (NASDAQ:AWSM), online review forum Yelp Inc (NYSE:YELP), and car manufacturer Ford Motor Company (NYSE:F). Below, we will dive into what is moving the shares of AWSM, YELP, and F.

Cool Holdings Signals Plans to Purchase Apple Partner

Cool Holdings stock is surging 18.2% to trade at $2.73 this afternoon, after the company last night announced its plans to purchase all outstanding stock on Simply Mac from GameStop (GME). Simply Mac is the largest Apple Premier Partner in the U.S., and AWSM stock is now up 41% year-to-date.

As of the most recent reporting period, 472,533 shares are currently sold short on Cool Holdings stock, which accounts for 7.4% of the available float. At the security's average pace of daily trading, it would take shorts less than two days to buy back their bearish bets.

YELP Stock Gaps Lower After Earnings

YELP is down 15.2% at $15.33, after the review app and website reported a first-quarter earnings beat, but disappointed with a weak second-quarter forecast. Yelp stock has had a volatile year so far, and today's bear gap is only adding fuel to the flames, bringing the stock's year-over-year deficit to 29%. 

Meanwhile, analyst B. Riley was quick to respond, downgrading YELP stock to "neutral," and slashing its price target to $42 from $50. This downgrade is more of the same, however, as coming into today, 18 of 23 covering firms carried "hold" or worse ratings.

Ford Motor Stock Soaks in Fresh Bull Note

Ford Motor is continuing its recent move higher, today relishing in a fresh bull note out of BofA-Merrill Lynch. Specifically, the firm handed over an upgrade to "buy" from "neutral," and a price-target hike to $14 from $13. This positive outlook has F shares up 1.3% at $10.33, maintaining their position above former resistance at the $10 mark. Year-to-date, Ford stock has tacked on an impressive 34%.

Today's bull note looks to be well overdue for the security, while in fact, more may be on the horizon. Currently, 10 of the 14 analysts following Ford Motor sport "hold" or "strong sell" recommendations, while the average 12-month price target stands just a hair above current trading levels, at $10.42.

 

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