2018 is shaping out to be a very interesting year for Wall Street traders and investors. In the year-to-date period, the Dow Jones Industrials is up a marginal 0.45%, the S&P 500 is up by a paltry 2.02%, Small caps are not faring particularly bad as the Russell 2000 boasts 4.64% YTD gains, and the NASDAQ is shining bright with 7.24% gains (see chart below)
In the same period in 2017, the Russell 2000 had climbed 1.89%, Dow Jones was up 5.74%, the S&P 500 was up 6.97%, and the NASDAQ was on a strong bull run with 13.71% gains. (See chart below)
From the foregoing, it is obvious that the general U.S. equities market is not particularly impressive this year. However, you can increase the odds that your portfolio will end the year with gains by looking for leverage in potential turnaround stocks. This article provides insights on 2 tech stocks that are on the eve of a massive turnaround.
Twitter Inc.’s stock on the verge of a breakout
The story of Twitter Inc. potential turnaround has been a regular fixture in investment news for much of the last three years; yet, the expected turnaround has remained elusive. However, this time around, Twitter might be able to catch the bullish wave and get its stock to rank among the shining stars on Wall Street.
Twitter started 2018 with gains straight out of the gate and its rally continued until the stock booked a $36.80 high on March 14. Unfortunately, the stock suffered a sell-off arising from profit-taking activities that pushed it down to $26.70 in April. In the last one month, the shares of Twitter have been trading on a range between $27 and $33 and it appears that the stock has more chances to breakout to new highs than to break down to previous lows.
Interestingly, Twitter has recently announced some strategic partnerships that could make its stock attractive to investors enough to trigger a breakout to new highs. For instance, the firm has revealed that Viacom, NBC, and Walt Disney will start delivering their content via Twitter.
Edward Delgado, an analyst at Olsson Capital notes that “when Twitter posts in Q3 earnings on July 26, analysts will be expecting to see earnings of $0.16 on revenues of $694.4M. Meeting or beating the analysts’ estimates will also cement Twitter’s turnaround story as the firm gradually begins to live up to its potential.”
GoPro, Inc.’s stock is about to break resistance
GoPro, Inc. a maker of action cameras and develop of video editing software and mobile apps is one of the young tech stocks that showed up on Wall Street with much promise and potential. When GoPro started, it couldn’t make its Hero cameras fast enough f and the firm was quick to extend its product offerings beyond body cameras to drones. GoPro had a swell-time on Wall Street in the second half of 2017 after it made good on its promise to cut costs and reform its organizational processes.
However, in the year-to-date period, GoPro has had some hard time encouraging investors to hold on to it’s stock. In the year-to-date period, GoPro stock has declined by more than 24% from $7.63 to its current price around $5.74.
However, the performance of the stock in the last couple of weeks suggests that it is about to breakout towards previous highs (see chart above). If GoPro builds up enough momentum to breakout above the resistance trend around $5.74, we can reasonably expect the stock to experience a rally that will take it all the way to its 200-day moving average around $7.56. A rally to the 200-day MA suggests a 31% upside potential if GoPro finds a trigger to initiate its rally.