Four Trades for Thursday
Enphase Energy (ENPH) is a stock to bet against today. The stock lost 15.65% to close at $45.07 after it posted first-quarter results. Enphase blamed tariffs for issuing a weak second-quarter outlook.
In Q1, Enphase earned $0.68 (non-GAAP) after revenue grew by 35.2% Y/Y to $356.08 million. In Q2, revenue will not meet expectations. The CEO said that tariffs would reduce its gross margin by around 2% in Q2. By Q3, the total gross margin impact is 6% to 8%.
In the AI sector, watch for Palantir (PLTR) to continue its rise. The stock was among the top 10 performing names on the Nasdaq yesterday.
SMCI (SMCI) is the third stock on today’s list to consider trading. Shares gained nearly 8% to close at $32.90. Short interest is 19.58%, so any rally to over $35 would lead to a short squeeze.
Consider trading IBM (IBM) on the bet that the 6.5% post-market drop reverses. IBM reported $1.60 a share in earnings per share (non-GAAP). Revenue grew by 0.6% Y/Y to $14.54 billion. The weak growth scared investors.
IBM CEO Arvind Krishna said that the macroeconomic environment is fluid. Still, the firm maintained its full-year expectations for achieving revenue growth and free cash flow.
