Stock Market Shows Positive Action; 3 Gig Economy IPOs Flashing Buy Signals

TL;DR

Stock market indexes had a mixed day, with the Nasdaq outperforming the Nasdaq 100. Three gig economy plays - Uber, DoorDash, and Airbnb - are showing strength, with Uber breaking out, DoorDash hitting a record high, and Airbnb signaling potential growth.

Transcript

good afternoon everyone and happy tuesday welcome to stock market today i'm your host alyssa korm joined by ed carson and on today's show we're gonna of course drill down into the action for the major indexes and we're gonna take a look at three gig economy plays ed that are looking pretty interesting that's right allie we're gonna take a look at u... Read More

Key Insights

• 🥳 The stock market had a mixed day, with the Nasdaq outperforming the Nasdaq 100.
• 😃 Growth stocks showed strength and constructive action, while big tech had some weak performances.
• 🖐️ Gig economy plays like Uber, DoorDash, and Airbnb are showing resilience and growth potential.
• ✋ IPO stocks, while high risk, can offer significant gains if handled carefully.
• 🎮 Investors are looking ahead to 2021 and economic recovery plays as vaccinations roll out.
• 🫥 Top-line sales growth is crucial for analyzing the potential of newly public companies.
• ✋ Alternatives entries can provide opportunities to enter stocks before they reach new highs.

Questions & Answers

Q: What were the major indexes' performance during the day?

The Nasdaq closed slightly higher, the S&P 500 was in positive territory, and the Dow posted gains of about 0.2%. Small caps had a particularly strong day, with the Russell up 1.6%.

Q: How did growth stocks perform compared to big tech?

While some big tech stocks had weak days, growth stocks continued to do well. This is seen as ideal and constructive action, allowing moving averages to catch up.

Q: Why is Uber performing well?

Uber has been on the rise since the election, benefiting from favorable gig economy legislation and strong earnings. The Uber Eats business is thriving during the pandemic, compensating for the decline in ride-hailing.

Q: What are the prospects for DoorDash and Airbnb?

DoorDash, a recent IPO, hit a record high after initial struggles, showing potential for growth despite profitability concerns. Airbnb, also a recent IPO, could benefit from a recovery in travel, particularly leisure travel, assuming widespread vaccinations occur.

Summary & Key Takeaways

• The stock market closed with the Nasdaq up slightly, the S&P 500 in positive territory, and the Dow also posting gains.

• The outperformance of the Nasdaq 100 signals positive action for growth stocks, while allowing moving averages to catch up.

• Uber has been surging since the election and favorable legislation for the gig economy, with its Uber Eats business doing especially well. Lift is also showing positive consolidation.

• DoorDash, a recent IPO, hit a record close after facing initial struggles, showing strong growth potential despite a lack of profitability.

• Airbnb, also a recent IPO, cleared several alternate entries and could be seen as an economic recovery play, assuming travel returns with vaccinations.