Q2 STOCKS TO BUY

2 Tech Stocks Making Big Post-Earnings Moves

Shares of MongoDB and Zscaler are moving in opposite directions

Digital Content Manager
May 31, 2024 at 11:15 AM
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Shares of MongoDB Inc (NASDAQ:MDB) and Zscaler Inc (NASDAQ:ZS) are having vastly different post-earnings reactions. The former is down 22.6% to trade at $239.96 at last check, brushing off a first-quarter earnings and revenue win after issuing a dismal full-year forecast. Meanwhile, the latter was last seen up 12.9% at $176.88 after a fiscal third-quarter top- and bottom-line beat, as well as a strong fiscal fourth-quarter outlook.

No fewer than 17 analysts have slashed their price targets on MDB, including UBS, Mizuho, and Scotiabank to $250. The stock is now trading at its lowest level in nearly one year, after its latest rally ran into overhead pressure at the 60-day moving average. Shares are down 24.1% this year, and on track for their eighth-straight daily loss.

Zscaler stock is getting mixed reactions from the brokerage bunch, with six price-target cuts and four hikes doled out. The equity is on track for its first close above the 50-day trendline since February, and eyeing its best single-day percentage pop since May 2023. ZS is down 20.6% this year, though.

The options pits are in frenzy. MDB has 25,000 calls and 41,000 puts exchanged so far today -- 11 times the intraday average volume -- with positions being opened at the most popular weekly 5/31 220-strike put. For ZS, it's 27,000 calls and 19,000 traded, or 5 times the volume normally seen at this point, and positions opening at the leading 180-strike call in that aforementioned series.

 
 

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