Tech stocks, Lyft, FuelCell Energy: Trending Tickers

Yahoo Finance anchors Julie Hyman and Josh Lipton examine several of the Magnificent Seven tech stocks following Tuesday's market close, while also monitoring Lyft (LYFT) shares as insiders sell shares and FuelCell Energy (FCEL) stock after missing on fourth-quarter revenue estimates.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

JULIE HYMAN: Caterpillar is one of those that's at a record high today, wasn't necessarily anything going on with Cat, specifically, but just this momentum that we have seen. And then we've been talking a lot about the rally broadening out beyond the Magnificent Seven. But the Magnificent Seven are also still going up, right? It's not that it's or, it's and. So Meta trading at the highest since September of 2021.

Netflix, although it's-- I guess, it's not in the Mag Seven, but it's in the fangs, right, if we're going back to that older moniker. Netflix at its highest since January 2022. Amazon its highest since April 2022. So a lot of examples like that. Amazon touching that level today but finishing the day a little bit lower.

JOSH LIPTON: Yeah. The bias just seems to hit the buy button right now. And it's hard to see how that changes. I mean, obviously you watch the news flow. We do have some more important economic data on tap. We've got the Fed's preferred inflation gauge, I believe, on Friday. So maybe that shifts it. But right now, we just continue to drift higher.

JULIE HYMAN: We do. So nothing-- we'll see if that does change the narrative on Friday. Let's talk about some other trading tickers we're watching. One of them is Lyft. Those shares in the red but very slightly, actually coming back quite a bit or actually that's the extended hours. So in the regular session that we saw for Lyft here today, we did see, I believe, a dip of about 3.6%. And that's because there were some selling going on here.

According to filings, co-founder John Zimmer sold about 3 and 1/2 million dollars worth of shares, and the president of the company also selling a much smaller chunk of shares. Now these kinds of sales happen for all kinds of different reasons.

JOSH LIPTON: Correct.

JULIE HYMAN: You know, you could say, I guess, that maybe there was a little profit taking Lyft up around 36% year-to-date. Maybe that was why. But still, you tend to see sometimes this trigger a little bit of selling on that.

JOSH LIPTON: Yeah. To your point, I mean, despite the drop today, the stock is up nearly 40% this year. It has been a really strong year for Lyft. Dow Jones actually noting, it is on pace here for its best year on record, actually. Not a ton of support on the Street, right? Most are at a hole to cover the name. But we did recently speak with Lyft CEO David Risher here on Yahoo Finance and sounding very confident, very optimistic to talk to us about the company's focus, talked about their focus on ride share, 100% concentrating just riders and drivers, obviously, trying to point a differentiation with Uber as well. But very strong year. If you were long, Lyft in January 2023, you're pretty happy.

JULIE HYMAN: Well, but you might be happier if it's Uber--

JOSH LIPTON: That's true.

JULIE HYMAN: Because it was up 150% this year.

JOSH LIPTON: And there is different on the Street, too. I mean, analysts pound the table for Uber. So it is different.

JULIE HYMAN: So kind of it's all relative. It always is, right?

JOSH LIPTON: Right.

JULIE HYMAN: Yeah.

JOSH LIPTON: All right. Finally, here's another name for you. FuelCell Energy falling after reports Q4 earnings miss on revenue and falling pretty hard. They're down about 5%. Company saw 43% decrease from the prior year, saying it was mostly due to lower product revenues. So this one's interesting. We do have the CEO here saying in a press release, we're methodically taking steps to build upon our core capabilities evolve the business, he says, model to achieve. What he talks about is growth, profitability in the future.

But investors, obviously, not convinced. Today the stock was down. It's now lost about half its value, down nearly 50% in 2023.

JULIE HYMAN: Yeah, exactly. And this is, even though the company the stock taking a hit today, it did, yes, have that revenue drop and the revenue missed estimates. This even though the loss actually came in better than estimated. It was a narrower loss than had been estimated for FuelCell. You know, the EBITDA loss, though, was bigger than estimated. So I guess that's what investors were sort of overweighting here.

But we're going to talk a little bit more about this later on. And FuelCell is not a solar company per se, but when you look at a renewable energy source company like a FuelCell, not quite universally, but almost universally, we have seen a down year for that type of stock.

JOSH LIPTON: Yeah, it's interesting. I mean, off when you see a move like this move. A lot of analysts will kind of start poking around, kicking the tires, thinking, all right, well, a lot of the bad news is priced in. Not here. I mean, most analysts still on the sidelines even after this kind of drop.