Nasdaq Holds Up: Netflix, Domino’s Break Out, Amazon Soars Toward Buy Point

TL;DR

Netflix, Amazon, and Domino's see strong performance as people stay at home during the pandemic.

Transcript

good afternoon everyone and welcome to stock market today its Alisa Kaur I'm here I'm joined by Ed Carson and on today's show we're gonna be taking a look at Netflix Amazon and Domino's but before we get to that let's take a look at the major indexes so this is a chart of the Nasdaq here and we were able to finish mixed at session highs I guess you... Read More

Key Insights

• 🧑‍💻 The tech sector, represented by the Nasdaq, showed resilience amidst the market downturn.
• 🥹 Netflix's ability to hold its own against new streaming platforms and its viral content contribute to its strong performance.
• 🧑‍🏭 Domino's stock broke out before the coronavirus crisis and is acting well despite the market's volatility.
• 👯 Amazon's demand for online shopping has skyrocketed as people prioritize staying at home and social distancing.
• 😋 Online entertainment, e-commerce, and food delivery businesses are thriving during the pandemic.
• 🛟 The performance of these companies reflects the changing behavior and priorities of consumers as they adjust to life during the crisis.
• 🧑‍💻 The strength of tech stocks demonstrates the importance of technology in connecting people and facilitating remote activities.

Questions & Answers

Q: Why did the Nasdaq perform better than the S&P and Dow in the market session?

The Nasdaq's relative strength line has been consistently strong, and during this session, growth and tech stocks outperformed. The strong performance of Netflix, Amazon, and other tech companies contributed to the Nasdaq's higher close.

Q: Why is Netflix considered a coronavirus play?

With people staying at home, Netflix is one of the go-to entertainment options. The company has been able to maintain its popularity and produce viral content, such as "Tiger King" and "Love is Blind."

Q: Did Domino's meet all the criteria for a breakout?

While Domino's stock broke out of a cup with handle pattern, the volume did not meet the preferred level. However, low volume breakouts can still be successful, and the stock held up reasonably well during the market downturn.

Q: Why is Amazon experiencing high demand?

As people avoid going to grocery stores, the demand for online shopping, particularly through Amazon, has surged. The company is even hiring additional workers to meet the increased demand for a wide range of products.

Summary & Key Takeaways

• The Nasdaq closed higher, underscoring the strength of the tech sector amidst the current market downturn.

• Netflix showed strong performance, with the stock breaking out of a long consolidation period and benefiting from increased app downloads during the weekend.

• Domino's stock cleared a cup with handle pattern, although volume did not meet ideal levels.

• Amazon's stock showed a v-shaped cup pattern and gained over 6%, nearing its previous high. The company is experiencing high demand as people prefer online shopping over going to brick-and-mortar stores.