81.05 -0.01 (-0.01%)
After hours: 7:54PM EDT
|Bid||81.05 x 1000|
|Ask||81.06 x 1000|
|Day's Range||80.22 - 82.14|
|52 Week Range||49.82 - 101.15|
|Beta (3Y Monthly)||2.94|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 1, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||82.10|
After San Francisco State University received a $25 million gift in XRP, Bay Area companies and non-profits are grappling with the risks and rewards of digital donating with cryptocurrency.
Cash App is free to download, and its core functions free to use. So how does this app, which has been downloaded more often than Venmo, make money?
The "Mad Money" host shifted his stance Wednesday and said during his show that Facebook "has to drop" its plans. Speaking directly to Facebook execs, who Cramer said watch the show, he said the company should take "some of your money" geared toward an expansion into payments and acquire Square Inc (NYSE: SQ) for $70 billion, or a 100% premium.
Square, Inc. looks like it is poised to make an upside move, so let's check out the latest charts and indicators so we can participate. In this daily bar chart of SQ, below, we can see a sideways trading pattern for prices from late January. Prices dipped in May but if you look at the trading volume and the On-Balance-Volume (OBV) line you will not see signs of increased selling nor aggressive selling.
We highlight tech stocks that might come up with promising earnings results despite inventory glut, trade war and regulatory scrutiny.
Square (NYSE:SQ) has reached an inflection point. After losing over one-fourth of its value during the spring, Square stock has now recovered to its February highs.Source: Shutterstock This leaves traders wondering where SQ goes next. The increasing influence of Square could eventually make the company one of the biggest in tech. Consequently, this growth has taken the company to high valuations.While this portends well for the future of the company, whether to buy SQ stock at these levels remains unclear.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks Top Investors Are Buying Now Square Is the Next Tech GiantSquare is so much more than a competitor to PayPal (NASDAQ:PYPL). Long term, SQ stock will become the Apple (NASDAQ:AAPL) or the Amazon (NASDAQ:AMZN) of finance. It has begun to follow in Amazon's footsteps by becoming both a conglomerate and an ecosystem, and ultimately, a disruptor.The company started by enabling every smartphone owner to accept credit cards. It has since moved into point-of-sale systems and can now handle other business functions such as payroll, funding, and marketing. It has also enabled website creation through its purchase of Weebly. Late last year, Square even made a second attempt to become a bank. This approval would allow them to accept deposits.All this will combine into the same ecosystem, one that could do to many industries what Netflix (NASDAQ:NFLX) did to video stores and cable television. If nothing else, it makes Square's point-of-sale system a more compelling offering than the ones built by a company such as NCR (NYSE:NCR).The increasingly cashless society also plays into the firm's plans well. Square's Cash App serves the same function as banks from a consumer standpoint. This could leave investors and consumers may question the future need for a Bank of America (NYSE:BAC) or a Citigroup (NYSE:C). While I believe it is too early to predict the destruction of large banks, it could force radical changes to their business models to survive.Consequently, the question as to whether to buy SQ stock has become one of when and not if to buy. Like other disruptors, SQ trades at a high price-to-earnings (PE) ratio. Analysts forecast average annual profit growth at 46.1% for the foreseeable future. Hence, the company can attract investors even with its forward PE of around 73. The Charts on Square StockWithout fundamentals, analysts will evaluate Square based on charts and momentum. SQ happens to trade at a critical level. At around $82 per share, Square stock trades almost 20% below its all-time high of $101.15 per share. It has also reached the approximate price point from which it pulled back in February.If it sustains itself above $82 per share, I think it will run higher in the near term, perhaps even retesting levels above $100 per share. A pullback could mean that it retests support in the mid-$70s per share range.It could also portend the beginning of a trading range between the low $60s and low $80s per share level.Another critical point could come Aug.1 when the San Francisco-based financial tech firm reports earnings for the second quarter. Since SQ will likely report an earnings beat, investors should watch forward guidance. This could provide the catalyst needed to drive Square stock for the foreseeable future. The Bottom Line on Square StockInvestors need more clarity on the equity's direction before buying SQ stock. Square supports a massive growth rate and continues to make the moves that could make its ecosystem one of the most influential in all of tech.However, the price of Square stock has reached levels where it pulled back in February. At this point, investors need to know that SQ is not forming a double top in the low $80s per share range.If it closes in the mid-$80s per share range or higher, it could retest that $101.15 per share high. If it pulls back, investors should wait until the stock finds its next inflection point.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post Square Stock Is a Buy and Hold, but Not at Current Levels appeared first on InvestorPlace.
Since early June, Square (NYSE:SQ) stock has been in the bull mode. Square stock shot from $60 to $82. But hey, so has the rest of the market. Just some of the catalysts include the expectation of lower interest rates and a truce with the U.S.-China trade war.Source: Shutterstock And yes, some Wall Street analysts are warming up to Square stock. Consider Raymond James' John Davis, who raised his rating on the shares from underperform to market perform. The main reason for this is he believes that Square's debit card is likely to see increased momentum, adding as much as $100 million to the top-line next year.No doubt, this would be a big deal.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut of course, much of the focus for SQ stock will be on the near-term. In fact, we'll get the second-quarter results on Aug. 1.So what is on tap? Well, in terms of revenues, the consensus forecast is calling for $557 million, up about 45% on a year-over-year basis. As for the bottom line, the estimate is 16 cents a share, compared to 13 cents during the same period last year. All in all, there remains quite a bit of optimism on Wall Street. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip The Square Stock Price and Other NewsDuring the quarter, there has been much activity, especially with partnerships. Here's a look at some of the notable events: * Square teamed up with the Ogden Raptors - a minor league baseball team that's part of the Los Angeles Dodgers farm system - to provide payment services. The deal involves both online sources, such as with Apple (NASDAQ:AAPL) Pay and offline ones. * Called Square for Restaurants, this is a set of order management integrations for Postmates, DoorDash and Chowly. All these services are not part of the core POS system, which means eliminating the use of various other tablets and manual entry of orders. * Square has entered a deal to be the payments and POS provider for the Indianapolis 500. The event includes more than 300,000 customers and about 500 concession stands. It's actually the largest sports venue in the world. * A resident of southern California has sued Square because he alleges the company's invoice system mistakenly sent his personal medical history to a friend. His attorneys are looking to put together a class-action suit. Interestingly enough, the Wall Street Journal recently wrote a piece on how Square's system has misfired on various occasions. * Now when it comes to SQ stock, one of the most important growth drivers is its Cash App. According to Instinet analysts Dan Dolev and Conan Leon, the app has 56.1 million users, which is more than PayPal's (NASDAQ:PYPL) fast-growing Venmo. They currently have a $100 price target on SQ stock, which was recently increased from $90. Bottom Line on Square StockSquare CEO Jack Dorsey has certainly done a great job with the company. What started as a simple app has quickly transformed into a strong platform with a robust ecosystem. It's also amazing that he has been able to do this while still the CEO of Twitter (NYSE:TWTR).Yet there are definitely issues with SQ stock. Even though the company deserves a premium valuation, it is still quite steep, with the forward price-to-earnings multiple of 73X.Sell-side analysts are generally cautious as well, with three sell ratings and 17 holds. And the average price target assumes zero upside from current levels.For the most part, Square stock is pricing in much of the good news. So this could make the upcoming earnings report a bit dicey since the growth rate has already been trending down during the past few quarters.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Even If Q2 Numbers Are Solid, Square Stock Looks Tapped Out appeared first on InvestorPlace.
(Bloomberg) -- Twitter and Square Chief Executive Officer Jack Dorsey addressed Apple Inc. employees at the iPhone maker’s headquarters Tuesday, a signal of the strong ties between the Silicon Valley giants.Dorsey, who co-founded Twitter Inc. and Square Inc., is one of several speakers talking to select Apple employees as part of an ongoing series, people familiar with the matter said. The billionaire spoke with staff from the marketing department, they said, asking not to be identified discussing internal matters.While the address itself didn’t point to a new partnership between Dorsey’s companies and Apple, it was indicative of their bond and existing collaboration. Apple promoted Twitter as an iOS app coming to the Mac this fall, and the social media service is deeply integrated into both the iPhone and iPad. Apple was also among the first retailers to sell Square’s now-common credit-card reader. Apple and Twitter representatives declined to comment.To contact the reporters on this story: Mark Gurman in San Francisco at email@example.com;Kurt Wagner in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bulls are ready to narrow in on the winners after the S&P 500’s historic rally which culminated in the index reaching over 3,000 on July 10. But how are investors supposed to pick the stocks that are poised for success? TipRanks offers the Smart Score tool which is made up of 8 key factors proven to increase the chances of finding the stocks that are best positioned for long-term growth. These factors include financial blogger opinions, insider activity and news sentiment. All this data is combined into a single numerical score with 10 being the highest. With the help of this tool, we found three “Perfect 10” tech stocks that are ready to outperform. Salesforce.com, Inc. (CRM)Salesforce is the leading provider of cloud-based business support software. They offer data-driven solutions in a world where the amount of data being produced is only growing.On June 10, the company broke the news of its almost $16 billion deal to acquire Tableau Software Inc. (DATA). While share prices dipped after the announcement, analysts don’t appear to be concerned. The company dominates the CRM space. With 20% market share, it has more control than its next three competitors combined. It already boasts around 10 million customer support cases in its Service Cloud and over 3 million Sales Cloud leads. Not to mention its other product offerings that include Salesforce Einstein, Salesforce Customer 360 and the Salesforce Lightning platform are expected to drive even more revenue growth.Q1 2020 results were strong, with the company seeing revenue increase 24% year-over-year to $3.7 billion. Cash generated from operations reached almost $2 billion, demonstrating 34% year-over-year growth. On June 25, management updated their Q2 2020 fiscal guidance with revenue now expected to fall within the range of $3.94 to $3.95 billion, demonstrating that more growth is on the way.Just yesterday John Difucci, a five-star analyst from Jeffries, reiterated his Buy rating and $189 price target. He believes that despite a platform outage in May, current consensus estimates are conservative. “Salesforce's pipeline remains robust and it is well positioned to achieve its long-term goals,” he added. Another top analyst, Jennifer Swanson Lowe said on July 5, “Channel work shows robust demand for Salesforce's solutions, and recent merger disclosures show a thoughtful and lengthy process behind the Tableau deal.” She reiterated her Buy rating and $190 price target on the stock. With a ‘Strong Buy’ analyst consensus and $183 average price target, it’s clear why TipRanks scored this stock a “10”. View CRM Smart Score Twilio Inc. (TWLO)The cloud communications company specializes in helping businesses improve their apps and digital interactions with customers. Since Twilio’s IPO three years ago, share prices have grown 256% and analysts don’t predict a slowdown anytime soon. The company has a strong customer base with 154,797 active customer accounts (ACAs) as of March 31, up from 53,985 a year earlier. Revenue from its software-as-a-service (SaaS) platform only is rising as the demand for effective online communications is only increasing. In February, Twilio acquired SendGrid, a cloud-based email services company. The company believes this acquisition drove the revenue growth witnessed in Q1. For Q1 2019, revenue was up 81% year-over-year, reaching $233 million. Compared to Q4 2018, its top line increased by 14%. The company updated its full year guidance on April 30, with revenue expected to fall between $1.10 billion to $1.11 billion, up from $1.065 billion to $1.077 billion. On June 18, top analyst, Richard Valera, initiated coverage with a Buy rating and $165 price target. “By leveraging its early market position, a highly efficient developer-led sales model and growing array of differentiated, higher-level functions on its platform. TWLO has delivered exceptional organic growth. As well, the company's recent move up the stack into the application space with its Flex contact center adds another, meaningful growth driver to its business,” he said. Top rated financial blogger, Luke Lango, thinks that the stock’s big growth fundamentals, favorable market fundamentals and strong technical trends make it a must buy. “All three of those tailwinds should persist for the foreseeable future, meaning that TWLO stock should continue to defy valuation standards and stay in rally mode,” he added. The Street is bullish on this “Perfect 10”. The stock has a ‘Strong Buy’ analyst consensus, receiving 13 buy ratings vs 2 holds over the last three months. Its $154 average price target suggests 6% upside potential. View TWLO Smart Score Square, Inc. (SQ)With consumers paying less and less with cash, digital non-cash payments are expected to reach 726 billion transactions by 2020. Square has designed its payment processing technology so merchants of all sizes can accept non-cash payments. The company also offers a digital peer-to-peer payments app, an enterprise payroll app and lending services. Square has placed significant focus on gaining international market share. The company partnered with Sumitomo Mitsui Banking Corporation, with the bank distributing its reader in all branches located throughout the country. SQ stands out among its competitors as it offers many types of digital transactions as opposed to just e-commerce solutions.Some investors might be concerned that SQ’s valuation is too high. The stock is currently being traded at 65.6x forward earnings and 10x sales. However, its growth projections might just be enough to reassure investors.Management expects global retail sales to grow to almost $34 billion, or at a 5% compounded annual growth rate through 2025. Square GPV is also expected to increase into 2025 by a 20%-plus annualized rate while revenue is forecasted to be up 25%. The company is attributing these jumps to hardware and ancillary solution revenue.Josh Beck, an analyst from KeyBanc, reiterated his Buy rating and $100 price target. “While its Cash App monetization narrative may take time to develop, we remain constructive on growth potential,” he said today.Financial blogger, Chris Lau, believes that SQ’s outlook is more conservative than it should be. “If the company raises its 2019 guidance, then SQ stock could attract more buyers, causing the stock’s rally to accelerate,” he said. The Street is more cautiously optimistic about the last “Perfect 10” on our list. The stock has a ‘Moderate Buy’ analyst consensus and $87 average price target, suggesting 6% upside. View SQ Smart Score
Despite a valuation that would give an Internet entrepreneur a nosebleed, Visa (NYSE:V) still has analysts pounding the table for it. Marketwatch, for instance, still counts 39 analysts on the Visa stock beat. Click to Enlarge Source: Shutterstock Of that number 30 have it rated a buy, and only one has it as low as an underweight on valuation. This despite Visa being up 31% in the first half of 2019.It's extraordinary faith for a company that now has a market cap of $406 billion on $20.6 billion in 2018 revenue. Expectations are for earnings of $1.33 per share when it reports July 23, with a "whisper number" of $1.37 per share, on revenue of $5.7 billion. The price to earnings ratio for the last four quarters is over 37.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAmong transaction processors, high valuations aren't unusual, but this is extreme. MasterCard (NYSE:MA) has a market cap of $285 billion on revenue of $15 billion. Square (NASDAQ:SQ) is worth $34 billion on 2018 revenue of $3.3 billion. * 7 Dependable Dividend Stocks to Buy The Bull Case for Visa StockWhat the bulls see is the end of cash and its replacement by Visa's payment system. They also see a company with a net margin of 50%. Last year $10.3 billion of its $19.9 billion of revenue hit the net income line.Bulls say Visa continues to innovate with Visa B2B Connect, a business payment system enabling seamless payment connections between international banks.They like its purchase of privately-held Verifi, for an undisclosed price, as a way to help merchants reduce chargebacks.They love a pilot program that will let merchants offer installment payments directly from their cash registers. They're even cheering the $75 million purchase of Rambus' token and smart-ticketing business, even though that business cost Rambus itself $105 million two years ago.Quite simply, analysts believe Visa stock is unstoppable. Because its bank payment network is used by so many third-party processors, innovations that fail outside it can succeed inside it. When Visa tells other processors to jump, they still drop what they're doing to ask, "How high?" Visa Stock Has Real RisksThe risks with Visa are those of the global economy.This means the risks are rising. The global economy is now growing at just 2.6% per year, and the World Bank says risks are firmly on the downside. China's growth has slumped to an annual rate of 6.2% and the trade war continues to bite.Even if electronic payments are taking an ever-bigger piece of that pie, processors like Visa remain under threat on pricing and costs. India's Unified Payments Interface offers lower costs in order to reduce the use of cash there. Chinese systems like Alipay from Alibaba Group Holding (NASDAQ:BABA) cost less, too. Nationalism is also increasing. India won't let processors take customer data outside the country.Visa is trying to get ahead of low-cost systems by joining Facebook's (NASDAQ:FB) Libra Association, but it still has enormous technology debt. Visa runs an incredibly costly network of charge agreements among banks, merchants and customers that has developed over decades and costs money to maintain. The Bottom Line on Visa StockVisa is the premier player in the global payments space, but does that make it a great investment at its current price?Square costs just 10 times revenue, and it's growing much faster. True, Square is only marginally profitable, while Visa is a profit-making machine, still growing at 10% per year. Visa looks safer.If you got into Visa as an income investor five years ago, when it was paying a dividend of nearly $2 per share on an investment of $63, your current yield is just 1.5%. It might be time to take some profits and invest them for a higher yield. Even younger investors might start looking for a good exit point. A profit is only paper until the cash is in your hand.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in BABA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post At These Valuations, It's Time to Take Profits on Visa Stock appeared first on InvestorPlace.
Shopify (NYSE:SHOP) stock is on fire year-to-date. Shares in the e-commerce platform zoomed 134% from January, with the stock currently trading around $322 per share. While the company's cloud-based SaaS solution for retailers is a game-changer, it is tough to justify a buy at the current valuation levels.Source: Shutterstock But with sales up 50% year-over-year, do the bulls have a point? Read on to see if Shopify stock is worth the sticker price. SHOP Continues to GrowShopify made its bones offering "back-end as a service" for scores of small e-commerce businesses. With that market locked up, SHOP stock needs new growth avenues to move the needle. With the company's move toward large enterprise customers, Shopify has found new ways to scale up the business into a global e-commerce powerhouse.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBased on Q1 2019 results, the growth story continues to play out. Total revenues were $320.5 million, up 50% year-over-year. Subscription revenues were up 40%, as merchants continue to sign up for the platform. The biggest growth was in Merchant Solutions, up 58% YOY. This growth was driven largely by increased merchandise volume among Shopify's third-party merchants.Shopify continues to develop its infrastructure, allowing them to become a global e-commerce powerhouse. The company's payments platform now enables merchants to accept sales in multiple currencies and get paid in their local currency; 40% of eligible merchants now use Shopify's shipping platform. The company's merchant cash advance unit grew 45% YOY.Shopify is to e-commerce what Salesforce is to CRM. The rise of e-commerce continues to be SHOP's strongest catalyst. But as SHOP scales up, will the company stumble along the way?With the Q2 earnings release anticipated to occur in August, within a few weeks, investors will have a clearer picture of Shopify's future growth. But for the time being, Shopify's recent fulfillment center announcement indicates their long-term strategic plans. * 7 Dependable Dividend Stocks to Buy With Fulfillment Center Expansion, Is Shopify the Next Amazon?Shopify surprised Wall Street with their announced plans to build their own fulfillment centers. The move created speculation that SHOP will go toe-to-toe with Amazon (NASDAQ:AMZN) for a bigger piece of the e-commerce pie.But can SHOP become the next AMZN? Building out their infrastructure makes Shopify a stronger partner for third-party retailers. But with the company barely generating $1 billion in sales, how do they expect to finance this massive build-out?Based on CFO Amy Shapero's presentation at Shopify's Investor Day, the company anticipates the fulfillment investment to be spread over the next five years. Shopify expects "incremental revenue to largely offset costs". The company anticipates positive returns on this investment to occur after 2023.The fulfillment build out is a long-term investment. Investors today pay a substantial premium for the expectations of Shopify's game-changing moves. But can this anticipated growth alone justify SHOP stock's current valuation? Valuation: How SHOP Stock Stacks Up to Its PeersWith SHOP continuing to post operating losses as it invests in growth, enterprise-value-to-sales is the best tool to compare SHOP stock's valuation to peers. Shopify currently trades at a EV/Sales ratio of 28.Here are the EV/Sales ratios of Shopify's main publicly traded peers:Amazon: 4.23PayPal Holdings (NASDAQ:PYPL): 8.5Square (NYSE:SQ): 9.4Twilio (NYSE:TWLO): 24.7The Trade Desk (NASDAQ:TTD): 21But given that Shopify is purely a SaaS platform, it is tough to compare valuation against its direct competitors. Amazon, being a full-fledged retailer as well as a marketplace, obviously trades at a lower EV/Sales valuation. PayPal is a fully scaled up operation, with slower growth but high operating margins.Twilio and The Trade Desk operate in different industries, but are similar to Shopify in that both are cloud services providers (cloud communications for Twilio, digital advertising for The Trade Desk).With Shopify stock trading at a premium to fellow B2B service providers TWLO and TTD, SHOP appears richly valued. While the company is making leaps and bounds dominating e-commerce, the stock is not a buy at these valuation levels. * 10 Stocks Driving the Market to All-Time Highs (And Why) Bottom Line: SHOP Stock Not A Buy TodayTen years down the line, Shopify could be a formidable competitor to Amazon. But at the current trading price, SHOP stock is too overvalued for investors to consider.While the company has seen significant growth in revenues, the company has yet to be profitable. While the announced fulfillment expansion is a positive catalyst for future growth, investors need tangible results before putting in a buy order.Short term, SHOP stock is a sell. A massive pullback could signal a buying opportunity to place a bet on SHOP's future prospects. But until then, investors should be cautious before chasing this growth story.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Why Short-Term Investors Should Avoid Shopify Stock appeared first on InvestorPlace.
About a year ago, I coined the high-growth STARS acronym on InvestorPlace, saying that these five growth stocks -- Shopify (NYSE:SHOP), The Trade Desk (NASDAQ:TTD), Adobe (NASDAQ:ADBE), Roku (NASDAQ:ROKU), and Square (NYSE:SQ) -- are the high quality, big return potential stocks that investors want to buy now and hold for the next several years.The idea behind the STARS acronym was simple. The market's favorite high-growth acronym -- FANG, which comprises Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) -- was becoming increasingly obsolete for investors. That's not to say that FANG companies have peaked. They haven't. They are still doing very well. But, they are such large companies and long FANG is such a crowded trade, that the long-term return potential in these names isn't what it used to be. It almost certainly isn't the best return potential investors can find in the overlap of growth and technology.STARS is exactly that. Each one of the STARS stocks is supported by huge secular growth trends, is small relative to their addressable markets, is unknown relative to the FANG stocks, and has huge upside potential in a multi-year window. That's why I told investors to forget FANG and buy the STARS stocks a year ago.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe results speak for themselves. Over the past year, the S&P 500 is up about 7.5%. Had you bought one share in each of the FANG stocks, you would be up just 5% over the past year. But, had you bought one share in each of the STARS stocks, you would be up more than 70% over the past year. Click to EnlargeIn other words, STARS stocks have generated more than 60 points of alpha over both the S&P 500 and FANG stocks over the past twelve months. * 7 Dependable Dividend Stocks to Buy This out-performance from the STARS group will continue. Without further ado, let's take a deep look at why you should buy each one of these high-quality growth stocks. STARS Stocks to Buy for the Long Run: Shopify (SHOP)Source: Shutterstock Trailing 12-Month (TTM) Gain: 90%The Bull Thesis Tag Line: "The Next Big Thing in Commerce"Core Bull Thesis: The secular bull thesis on e-commerce solutions provider Shopify is simple. Thanks to the widespread proliferation of the internet, the commerce world is two doing things: One, it's pivoting into direct retail, wherein brands and merchants are selling to and communicating with customers. Two, it's also pivoting into a decentralized model, wherein anyone can sell anything to anyone else.Shopify is at the heart of both these pivots, providing the tools which allow any seller to sell any item through any direct channel, and is thus levered to benefit from the expansion of these two huge secular tailwinds.These tailwinds are still in their early innings. Shopify's gross merchandise value represents less than 1.5% of global e-retail sales, and is growing at a steady 50%-plus pace. Further, Shopify just started to jump into the physical retail world, dramatically expanding this company's addressable market.As such, SHOP has the necessary room and firepower to keep growing at a robust rate for a lot longer.Key Growth Projections: * Shopify goes from 1.5% e-retail market penetration today, to 7.5% penetration by 2030, as direct decentralized retail trends gain mainstream traction. * Shopify goes from about 0% physical retail market penetration today, to about 0.5% penetration by 2030, as Shopify finds some success in the physical retail world. * Total gross merchandise volume (GMV) and Merchant Solutions revenue grow at about 30% annualized pace into 2030. * Subscription Solutions revenue grows at a high teens annualized pace, as Shopify continues to grow its merchant base. * Total revenue grows at a 25%-plus pace over the next decade. * Operating margins scale from 1% today, to 25% by 2030, as robust revenue growth drives significant operating leverage on already huge gross margins. * 2030 EPS settles around $25, versus projected EPS in 2019 of $0.60.Long-term Price Target: About $750, based on a commerce platform average 30-forward multiple on projected fiscal 2030 EPS of $25.Present Value: About $300, based on a 10% discount rate and a 2029 price target of $750. The Trade Desk (TTD)TTM Gain: 160%The Bull Thesis Tag Line: "The Future of Advertising"Core Bull Thesis: The secular bull thesis on The Trade Desk centers around something called programmatic advertising. Programmatic advertising is essentially automation in the ad industry. Before, ad spend allocation was largely a guess-and-check effort, while ad transactions were conducted between two human parties. Programmatic advertising automates both of those processes, leveraging AI and big data to optimize ad spend allocation and dynamically transact ads based on those optimal allocations. In this sense, programmatic advertising is the future of advertising.The Trade Desk is one of the most important players in the programmatic advertising world, and one of the fastest growing, too. But, ad spend through the TTD platform measures less than 1% of the near $300 billion global digital ad market. That market is rapidly marching towards $500 billion-plus levels. Eventually, most of that $500 billion-plus worth of spend will be transacted programmatically, and the lion's share of that programmatic spend will happen through TTD.As such, The Trade Desk has huge growth potential over the next several years through automation in the ad world, and if all that growth potential materializes as expected, TTD stock will fly higher from here.Key Growth Projections: * The global advertising market measures around $1 trillion by 2025, up from $650 billion-plus this year. * The digital ad market grows to around $650 billion by 2025, representing 65% share versus 45% share in 2018, as engagement and ad dollars continue to flow into the digital channel. * TTD grows its share in the digital ad market from less than 1% in 2018, to 2-2.5% by 2025, as programmatic advertising becomes more widely used across various ad formats and channels. * Gross spend on TTD and revenues grow at a 25%-plus pace into 2025. * Profit margins gradually move higher as robust revenue growth drives positive operating leverage on healthy gross margins. * 2025 EPS comes in around $15, versus 2019 estimates of $2.90. * 10 Stocks to Sell for an Economic Slowdown Long Term Price Target: About $375, based on a digital ad average 25-forward multiple on projected 2025 EPS of $15.Present Value: About $230, based on a 10% discount rate and a 2024 price target of 375. Adobe (ADBE)TTM Gain: 20%The Bull Thesis Tag Line: "The Cloud Giant in a Visually Dominated World"Core Bull Thesis: The secular bull thesis on cloud giant Adobe is predicated on two very simple ideas: First, the world is becoming increasingly obsessed with visuals. Consumers are increasingly engaged in visual-first social media apps, like Instagram and Snapchat. They are also spending more time on visual-content-heavy streaming platforms like Netflix. At the same time, businesses are increasingly using visuals to communicate with their customers, since these forms of communication are what resonates most deeply with today's consumer. Thus, both consumers and enterprises are shifting to a more visually-focused world.Second, Adobe is the unrivaled king in delivering visual solutions. Sure, there are a ton of Adobe competitors out there, but none really rival Adobe. They are all just knock-offs. Long story short, Adobe dominates the visual-focused industry, and when it comes to creating visuals on both the consumer side (e.g. editing a photo for Instagram) and the enterprise side (e.g. creating a visually aesthetic ad campaign), everyone turns to Adobe solutions.Put those two ideas together, and it becomes increasingly obvious that Adobe has plenty of room to grow over the next several years as both consumers and enterprises increasingly adopt visual-focused cloud solutions.Key Growth Projections: * Adobe's Document Cloud, Creative Cloud, and Experience Cloud businesses continue to grow at a robust pace over the next several years given digital and visual related tailwinds, and ultimately power about 15% annualized revenue growth into 2025. * Gross margins expand gradually towards 90% as Adobe benefits from steady but small price hikes given lack of competition. * Operating margins expand towards 50% as 15% revenue growth drives healthy operating leverage on huge gross margins. * EPS settles around $23 by fiscal 2025.Long Term Price Target: About $460, based on a growth average 20 forward multiple on projected fiscal 2025 EPS of $23.Present Value: About $290, based on a 10% discount rate and a fiscal 204 price target of $460. Roku (ROKU)Source: Shutterstock TTM Gain: 111%The Bull Thesis Tag Line: "The Cable Box of the Streaming World"Core Bull Thesis: When I first created the STARS acronym, the most controversial stock on the list was Roku, given what many perceived as huge competition risks. But, ROKU stock is up 111% over the past year as the company's secular bull thesis has drowned out competition risks.The core bull thesis here is that Roku is becoming the central access point (or "cable box") of the streaming world -- a platform which consumers everywhere rely on to access their favorite streaming services like Netflix, HBO, Amazon Video, and the like.A year ago, there were concerns that Roku couldn't maintain this "cable box of the streaming world" positioning because bigger competitors would come in and gobble up its customer base. But, those concerns missed three big things: 1) Roku is content-neutral, it's competitors aren't, and this content neutrality ultimately makes for a more friction-less viewing experience; 2) Roku is already the runaway leader in this space, and consumers like the intuitive Roku UI; and 3) the streaming space will big enough to accommodate more than one service platform aggregator.As such, Roku has done nothing but rattle off big-growth quarter after big-growth quarter over the past year, and ROKU stock has more than doubled in the process. The streaming market globally is still relatively nascent, and ad dollars are just now starting to follow consumers into the streaming channel, so Roku's long-term growth narrative is in its first few innings. Over the next several years, the company will continue to rattle off big-growth quarters and ROKU stock will trend higher.Key Growth Projections: * The global streaming-video-on-demand (SVOD) market grows from roughly 300 million households today (25% TV household penetration), to around 600 million households by 2025 (35% TV household penetration, assuming mild global TV household growth). * Roku's platform goes from about 30 million accounts in 2018 (about 10% market share) to about 100 million by 2025 (about 17.5% share). * Average revenue per user rises at roughly 15% per year into 2025, as unit SVOD revenue moves higher due to higher streaming service prices and more streaming service subscriptions per account, and AVOD revenue moves higher from a higher inflow of ad dollar volume. * Total revenues rise at a 25%-plus pace into 2025. * Platform gross margins scale towards 70%, while player gross margins stay around 5%. * The opex rate drops to 40% as robust revenue growth drives significant operating leverage. * EPS settles around $5.50 by 2025. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Long Term Price Target: About $165, based on a big growth 30-forward multiple on projected fiscal 2025 EPS of $5.50.Present Value: About $100, based on a 10% discount rate and a projected 2024 price target of $165. Square (SQ)Source: Shutterstock TTM Gain: 22%The Bull Thesis Tag Line: "The Backbone of Modern Commerce"Core Bull Thesis: The secular bull thesis on Square is based on the idea that Square is transforming into the backbone of the the modern commerce world by creating a payments ecosystem tailored to 21st century consumption and retail habits.Consumers globally are pivoting away from cash transactions towards non-cash transactions, because non-cash transactions are significantly more convenient and more levered to digital shopping. As such, global non-cash transaction volume has risen at a steady 10%-plus clip for the past several years.Over the next several years, non-cash payments volume is expected to run at a 10%-plus pace, driven by heavier card usage in developed economies and broader urbanization and digitization in developing economies.Square has built a payments platform which helps merchants of all shapes and sizes process these non-cash transactions. On top of that, the company has developed a myriad of tangential solutions - such as a digital peer-to-peer payments app, an enterprise payroll app, and lending services - all of which are tailored to the consumption and retailing habits of the 21st century.Square is developing a payments ecosystem which is built for modern commerce. Yet, the platform still only accounts for 0.35% of all global retail sales. As such, the trends and addressable market here imply that Square has a lot of room and firepower to grow over the next several years.Key Growth Projections: * Global retail sales grow at a 5% compounded annual growth rate into 2025 to nearly $34 billion, due to inflation and global urbanization trends. * Square's market share of the global retail sales pool rises from 0.35% in 2018, to 1% by 2025, as the company expands its reach in the physical retail world from micro-merchants to bigger merchants, and as the company takes a deeper dive into the e-commerce world. * Square GPV grows at a 20%-plus annualized pace into 2025, while revenues grow at at 25%-plus annualized pace, driven by incremental revenue from hardware and ancillary solutions. * Profit margins move steadily higher over the next several years as increased scale drives positive operating leverage. * EPS settles around $4.50 by fiscal 2025.Long Term Price Target: About $135, based on a payments stock average 30-forward multiple on fiscal 2025 EPS of $4.50.Present Value: About $85, based on a 10% discount rate and a fiscal 2024 price target of $135.As of this writing, Luke Lango was long FB, AMZN, NFLX, GOOG, SHOP, TTD, ADBE, ROKU, and SQ. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 5 STARS Stocks Smashing the Market (FANG Stocks, Too) appeared first on InvestorPlace.
It has been very hip to be long Square (NYSE:SQ) stock these past few weeks. Now, however, it's time to consider being less trendy and waiting for a less carefree pullback that's making increasingly good sense off and on the price chart. Let me explain.Source: Shutterstock For bullish investors it has been a wonderful few weeks since I last wrote about SQ stock. Interest rate optimism and lesser U.S. China trade war saber rattling have allowed the broad-based, large cap S&P 500 and tech-heavy Nasdaq indices to climb by 4.5% and 7%, respectively, to marginally fresh highs. But it gets even better for SQ stock investors.Over this same period, Square stock has rocketed higher by 20% while building the right side of a very constructive-looking corrective base on the price chart. It's all good, right? Longer-term, I remain optimistic. But in the short-term, the risks have also increased for bullish investors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSQ's earnings are out in two weeks and the last time the company delivered its results, investors were far from happy. A mixed report failed to live up to expectations, which led to shares getting hammered by an immediate 8%, then continuing to outpace the broader markets on the downside during May's broad-based corrective selloff.But following Square stock's rally this past month, shares are nearly 11% above last quarter's post-earnings confessional. Furthermore, what many had viewed as a pricey growth play has become even more expensive with today's forward price-to-earnings ratio of 74 and PEG ratio of 2.24. By comparison, peer PayPal (NASDAQ:PYPL) trades at 34x forward earnings and a PEG ratio of 1.98. * 7 Dependable Dividend Stocks to Buy Today, the price of SQ stock has less margin for error to keep Wall Street happy. And on the price chart, shares are warning investors that pressing the transaction button to buy SQ is likely to come with an undesirable late penalty fee of sorts. SQ Stock Weekly Chart Click to EnlargeI'm a fan of larger constructive bases like Square's generally setting the stage for higher prices. But for timing purposes, a pattern breakout through Square's February mid-pivot high of $84.66 within this particular double-bottom pattern is at increased risk of being a difficult entry point for bullish investors.An overbought daily and weekly chart stochastics indicator and price action outside both SQ chart's Bollinger Bands stresses the heightened likelihood of a pullback or even a failed breakout. In either scenario breakout buyers will be faced with paying too much for shares in the near-term and quite possibly a loss if the pattern entry is managed with a technical exit to minimize exposure.A quick look at a lopsided crop of bullish articles penned recently at InvestorPlace, also gives me reason to think the strong price action in SQ stock won't continue without some challenges. I'm agreeable with most of the optimism, such as Luke Lango's article at InvestorPlace this past week. Still, from a trading vantage point, it's another warning sign shares of Square are more prone to downside risk than otherwise.My suggestion for SQ is to simply wait for a pullback that's strong enough to remove today's rampant bullishness in shares while keeping the integrity of the pattern intact. Technically, I'd like to see $77 hold during a pullback without questioning the durability of this particular base. As such, that's my line in the sand if an opportunity to buy Square stock on weakness unveils itself over the coming couple of weeks. Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Why Itas Less Hip to Be a Square Stock Investor Right Now appeared first on InvestorPlace.
U.S. stock futures are trading higher as the Street gears up for a slew of bank earnings this week. Citigroup (NYSE:C) kicked off the festivities this morning with an earnings beat that has the stock up 1% premarket.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.19%, and S&P 500 futures are higher by 0.22%. Nasdaq-100 futures have added 0.30%.In the options pits, call volume saw a modest uptick heading into the weekend. The S&P 500 notching a new record high on the day was no doubt a driver of the demand. Overall, some 19.2 calls and 15.6 puts changed hands on the session. The euphoria was felt at the CBOE, with the single-session equity put/call volume ratio dropping to 0.55, which is near its 2019 low. At the same time, the 10-day moving average slipped just below 0.60.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions trading was on fire in the following three stocks on Friday: Johnson & Johnson (NYSE:JNJ), Ford (NYSE:F) and Square (NYSE:SQ).Let's take a closer look: Johnson & Johnson (JNJ)Johnson & Johnson shares plunged 4.15% on Friday following news that the U.S. Department of Justice is investigating the company. According to a Bloomberg report, the DOJ is seeking evidence that JNJ lied about knowing its talcum powder had cancer risks.The fall sent JNJ stock below all major moving averages and places it on precarious footing ahead of tomorrow morning's earnings release. We aren't seeing any immediate downside follow through, however. The stock is hovering near unchanged in premarket trading. The next two support targets are $130 and $125.On the options trading front, the sour news spurred put demand. Total activity jumped to 559% of the average daily volume, with 114,265 contracts traded. Puts accounted for 54% of the day's take.Implied volatility rocketed higher on the day to 25% placing it at the 56th percentile of its one-year range. The expected move heading into tomorrow's report is $3.83 or 2.9%. Ford (F)Ford stock awoke on Friday, booming 3% on above-average volume. The surge completed a bull flag pattern that formed over the past two weeks and places F shares on the cusp of breaking a key intermediate-term resistance zone. We could take the pattern recognition one step further. The past three months have seen a cup-and-handle pattern that will provide a powerful bullish signal if F can rise above $10.50 this week.Income seekers still hold Ford in high regard given its juicy 5.72% dividend yield.On the options trading front, traders came after calls with a vengeance. Activity grew to 326% of the average daily volume, with 141,970 total contracts traded; 72% of the trading came from call options alone. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Implied volatility continues to hover near the lower-end of its range. At 31%, it's perched at the 26th percentile of its one-year range. Premiums are baking in daily moves of 20 cents or 1.9%. Square (SQ)Square was the top-performing stock on my watchlist last week. The four-day rally that began on Tuesday with an upgrade from Raymond James ended with a bang ahead of the weekend. Friday's 3.6% pop saw aggressive buying throughout the session, officially registering its fourth accumulation day in a row.With the ramp, SQ stock is now testing a crucial year-long resistance zone. A break above $83 would tee the stock up for a run back toward $100.On the options trading front, optimism fueled call demand on the session. Total activity climbed to 266% of the average daily volume, with 141,982 contracts traded. Calls claimed 70% of the session's sum.Implied volatility drifted sideways at 43%. That places it at a lowly 13th percentile of its one-year range and suggests options are cheap. Premiums are pricing in daily moves of $2.22 or 2.7%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Monday's Vital Data: Johnson & Johnson, Ford and Square appeared first on InvestorPlace.
A trifecta of perfection: We had record highs in the S&P 500, Dow Jones and Nasdaq today. Shareholders in the PowerShares QQQ ETF (NASDAQ:QQQ) have little to complain about as tech stock continues to mash out higher highs over the past few sessions.Source: Shutterstock That's as FAANG stocks mostly lag and while rate cuts are likely.That said, it's not expected to be an amazing quarter when it comes to earnings. Companies are warning about their upcoming results, while analysts' estimates are looking at year-over-year declines for many names.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBlame it on tough comps from tax cuts, tariff wars or what have you. It's not a perfect operating environment and with stocks near all-time highs, investors are either willing to overlooking a few quarters of underperformance and pay a higher valuation for earnings or they area simply too optimistic. We'll know soon enough when we start seeing these companies report. Facebook SettlementFacebook (NASDAQ:FB) shares spiked into the close on Friday, ending the session higher by 1.8%. Reports surfaced moments before the close that the company had come to terms on a $5 billion settlement with the FTC. The deal is expected to have some other privacy restrictions as well. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond While $5 billion is a lot of cabbage, it's roughly the same amount that FB set aside to pay for such an event. Clearing this obstacle removes an unknown event for investors, who like clarity and having uncertainty removed. Movers in the Nasdaq TodayIllumina (NASDAQ:ILMN) shares sank more than 15% on the day after the company warned about its upcoming results. This caught investors way off guard, considering the company just beat and raised estimates a few months ago. It's not a good look for the genomics company, as it now hovers in no man's land. (Here's the trade setup for ILMN stock now).One could argue that it also weighed on Invitae (NASDAQ:NVTA), although the company's $50 million acquisition could be what's shaking up the stock price. Down 1.75% on the day, it's at least worth pointing out.Square (NYSE:SQ) stock jumped almost 4% on Friday, giving it a 10% gain over the past few days. The stock has seen some positive analyst commentary over the past few days, with the latest coming from Citigroup on Friday. While the stock is running into some resistance, many have it on breakout watch.JB Hunt (NASDAQ:JBHT) caught a big bid on Friday, rising over 6% on the day. However, currently trading hands for around $93 apiece, shares are well off the 52-week highs near $130. Be careful with this one, which reports earnings Monday.The $45 billion technology consulting company Infosys (NYSE:INFY) reported earnings on Friday. Shares hit new 52-week highs on the day, despite missing revenue estimates and reporting in-line earnings results. Better-than-expected guidance and an increase in its capital return plan likely helped, though.Memory and memory equipment stocks were also in focus in the Nasdaq today, as Lam Research (NASDAQ:LRCX), Western Digital (NASDAQ:WDC) and Micron (NASDAQ:MU) all put together a strong session. Micron is flirting with prior resistance, but a move over $44 to $45 could trigger a breakout. All About AmazonShares of Oracle (NASDAQ:ORCL) slipped 30 basis points on Friday after the company lost its court case against the Pentagon. The $10 billion cloud contract will now go to either Amazon (NASDAQ:AMZN) or Microsoft (NASDAQ:MSFT). But that's far from the only reason Amazon stock is in the news day.First, the company's much-discussed Prime Day is set to start next week. Prime Day will kick off on July 15th and run through the 16th. The made-up shopping event isn't unlike Alibaba's (NYSE:BABA) Single's Day, while Amazon now attracts others competitors into mix as well. Companies like Best Buy (NYSE:BBY), Target (NYSE:TGT) and Walmart (NYSE:WMT) will be running specials too, trying to keep customers away from the e-commerce juggernaut.As the smart-speaker battle heats up, Amazon is reportedly looking to better its game. The company wants to roll out a high-end Echo device, which could arrive next year. Further, Amazon is also working on an Alexa-powered robot. Codenamed Vesta, the devices apparently will not be ready for mass production this year. * 7 Stocks to Buy for Monster Growth in the Second Half of 2019 Last but certainly not least, Amazon's game-streaming Twitch platform logged more than 2.7 billion hours worth of streaming in the second quarter. For the industry, that accounted for more than 70% of the total. The next closest was Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube Live at 735 million hours and 19.5% market share. It was Twitch's second-biggest quarter ever.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN and GOOGL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Nasdaq Today: Amazon Prime Day; Facebook Settles With FTC appeared first on InvestorPlace.
The stock market is slowly but surely pushing higher. It seems as though the bulls are reluctant to run too far, too fast. At the same time, the bears simply can't garner any staying power when it comes to pushing this market lower. At least not while rate cuts are on the way. Let's look at a few top stock trades for next week. Top Stock Trades for Monday 1: Johnson & Johnson Click to EnlargeShares of Johnson & Johnson (NYSE:JNJ) were smacked lower on Friday, falling over 4%. The stock is approaching the same level we flagged earlier in the year, near $130.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis level is currently acting as support, but has played a key role over the past 12 months. If JNJ stock falls down to this level, it may be worth investors nibbling at on the long side. Keep in mind, J&J reports earnings next week. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond If it hold this mark on an earnings decline, that's even better. Top Stock Trades for Monday 2: Square Click to EnlargeWe had Square (NYSE:SQ) on watch for a break higher, and that's exactly what we've gotten this week. The stock is up big over the past four trading sessions, rallying over 10%.For the short-term traders in this name, it would be prudent to book some of these gains with SQ stock heading straight into prior resistance.From here, let's see how SQ stock behaves. Does it pullback and consolidate a bit? Do shares push through resistance, which turns to support?I would love to see SQ stock coil under this level for a few days while holding up above $80. A breakout could Square flying higher, but the more rest it has before the breakout, the more powerful the move can be. On a decline, see that $78 holds as support. If it doesn't, $75 is on the table. Top Stock Trades for Monday 3: Illumina Click to EnlargeIt was a tough day to be a shareholder in Illumina (NASDAQ:ILMN). The stock plunged more than 15% after management warned about a big shortcoming in earnings.The action on Thursday spoke clearly. However, investors used the pullback to the 21-day moving average as an opportunity to get long rather than an opportunity to exit the name once steep channel support gave way.Given how big of a run ILMN has been on, you can't blame dip-buyers too much on this one. One day later and the stock is down huge. Its inability to stay above the 200-day moving average near $317 or the 61.8% retracement near $311 doesn't bode well for bulls. Under prior downtrend resistance (purple line) just adds salt to the wound.The longer shares stay below $311, the worse off bulls are. Let's give this one a few days to see where it settles down at. If it reclaims the $311 mark quickly, then we at least have a point of reference to use on the downside. Top Stock Trades for Monday 4: Aurora Cannabis Click to EnlargeYesterday we wrote about the bearish setup in Canopy Growth (NYSE:CGC) with its descending triangle formation. On Friday the stock plunged more than 7% and Aurora Cannabis (NYSE:ACB) isn't doing much better, down more than 5%.ACB is setting up the same descending triangle formation that CGC is and it's playing out exactly the same. Below the $7 to $7.25 area is very troubling for ACB. A rally back to this area and a failure to reclaim it sets it up for more downside. * 7 Stocks to Buy for Monster Growth in the Second Half of 2019 Be careful with this one. I wouldn't touch this one on the long side with a chart like this.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post 4 Top Stock Trades for Monday:JNJ, SQ, ILMN, ACB appeared first on InvestorPlace.