SoundHound, Apple, and Best Buy

By Chris Johnson, Quantitative Specialist, Money Morning • March 1, 2024

SoundHound AI

Shares of SoundHound (SOUN) are pulling back by 15% this morning after the company missed their earnings numbers by a penny. Revenue for the quarter saw 80% growth over last year’s, but the market is taking the opportunity to ring the register after the stock gained 350% in February.

I’m taking advantage of the dip to add to my position as SOUN recently announced Nvidia (NVDA)’s new position in their stock. Watch for support at $6 followed by a move back to $8 and then $10.

Apple

Shares of Apple (AAPL) are trading lower again as the stock slips below that key $180 price that we talked about as “make or break” support earlier this week.

Selling volume was high on the stock yesterday, a sign that investors are starting to act on their fears that the company is headed much lower over the next four to six weeks.

For my money, I’m expecting a move to $165 for AAPL shares, an 8% drop from their current price.

Best Buy

Best Buy (BBY) stock went through the roof after their earnings report but is now falling right back into its longer-term trend.

We’ve learned about short squeezes today, and well, BBY shares were on my Squeeze List a few days ago with a score of 89%. That tells me that yesterday’s 8% rally was likely due to shorts closing their positions, which means the stock is likely to trade right back down to $77.50 after all the dust settles.

This has been one of the lackluster retailers for the last two years. If you like retail exposure, I recommend Costco (COST) or Walmart (WMT) over Best Buy.