Despite what you may hear or read, it’s not all peaches and cream within the Nasdaq 100 Index.
Sure, Meta, MicrosoftMSFT
and the select, honored handful have traded indecently well for months — but a number of major components are not keeping up with those favorites of the financial/business media.
These 5 stocks, for example, have price charts that might cause concern to analysts who study such phenomena.
5 Nasdaq 100 Stocks Below A Significant Technical Level.
Cisco SystemsCSCO
is an information technology company with a market capitalization of $204 billion.
Founded in 1984, with headquarters in San Jose, California, it’s one of the older names in the Silicon Valley world. Trading with a price-earnings ratio of 15, the company pays a 3.14% dividend.
Here’s the daily price chart:
Cisco on Friday peeked above the 200-day moving average in the morning but the buying dried up and the stock remains below. It’s been underneath it since the big mid-November gap down.
ON Semiconductors makes, guess what, semiconductors. The Scottsdale, Arizona-based company has market cap that comes to $31.64 billion. The stock’s p/e is 14.82. No dividend is paid.
The daily price chart looks like this:
It’s been trading below the 200-day moving average since mid-October with a brief rally to just above it in December — a rally that did not hold.
PayPal is the name brand credit services firm used by millions to move money around. “Visionary genius” Elon Musk had something to do with its creation. Trading now with a price-earnings ratio of 18.16, the stock’s market capitalization is $65.77 billion.
The daily price chart is here:
After taking a brief trip in July to above the 200-day moving average, the stock continued to trade below it right up until the present. The rally off of the late October lows has been enough to turn the 50-day moving average upward again.
Starbucks has a market cap of $104.55 billion, not too bad for a bunch of coffee shops. Started in Seattle in 1971 by Howard Shultz and now offering cups at stores globally, the stock trades with a price-earnings ratio of 25.67 and pays a 2.52% dividend. (Full disclosure: I only drink coffee at The Trident Cafe in Boulder.)
Here’s the daily price chart:
After a nice early November rally that peaked above $107, Starbucks dropped steadily to its current price of $92.29. That’s below the 200-day and the 50-day moving averages.
Tesla is another Nasdaq 100 component with an Elon Musk origin story. The electric vehicle company, now headquartered in Austin, Texas, recently introduced a truck-like vehicle. Market cap for the stock is $695 billion. The price-earnings ratio is 70. No dividend is paid.
The daily price chart looks like this:
It had been trading above the 200-day moving average — up until this week. Tesla now has 2 closing prices below it, starting off the new year with less than a bang. Note that since July, this chart shows a pattern of lower highs and lower lows from July through October.
