A wild start to the week!
Prospero.Ai Early Week Bonus Edition 7/15/24
Wanted to do a little intro on SMCI here beacuse it is a good lessson. After our call about “good losses” the universe definitely punished us because we made what looked like a dumb mistake. We didn’t check the news. SMCI was added to the NASDAQ 100 which should be a very positive news story.
But despite opening up the day on a great note it has since slowed down significantly. It reversed course on a dumb story. Susquahana reiterated its Sell rating but raised the price target from $275 to $325. Which is a silly reason for the stock to go down but it shows how easy it is to spook momentum traders sometimes. $325 is not a serious price target. A $325 price target puts them at a P/E ratio of 17 which is not real, just a price target that is attempting to help out shorters. It should not move the market. But you can see how complex these things are sometimes!