Stock news for the week ahead - The Fourth Week of January

Is the Stock Market open today?

In acknowledgment of Martin Luther King Jr. Day, which is usually on the third Monday of January, the stock market will be closed. This includes all commodities such as crude oil and gold as well as the U.S bond market. However, stock futures will remain active.

Indices NASDAQ, Dow, S&P 500 are active +0.15%, +0.17%, +0.08% respectively. This is due to the optimism of Joe Biden President’s $1.9 trillion stimulus package that will be given to Americans.

Since the stock market is closed today, we will take this time to recap some stocks.

Virgin Galactic

BULLISH

Space Stocks surged on Friday after Cathie Wood’s announced creating a new ETF related to space exploration. Virgin Galactic (NYSE: SPCE) was the first stock to jump 22% since it is also awaiting a test flight for taking passengers to space. The test was supposed to happen last month but was canceled to this month with a now specified date. It is expected that the stock will rally up once the test date is announced and even more if it goes well. Virgin Galactic is the center of attention when it comes to the space exploration sector and is been said that 2021 space will be the new investing theme. If this is true, we should expect volatile times for the stock. Find the full cover article on space stocks.

QuantumScape

BULLISH

QuantumScape (NYSE: QS) is an American company producing solid-state lithium-ion batteries for electric vehicles. In the last month, the stock has experienced a lot of ups and downs. At the beginning of the month, the company was faced with a routine investigation on the company’s possibility of violating the federal securities law. The stock then dropped 40% after Seeking Alpha published an article on the 4th of January with filed complaints that QuantumScape Corp. made misleading statements or may didn’t even disclose necessary information such as:

  1. Manipulating the battery’s power life and density with false statements that are overstated compared to the truth.
  2. The company is not in a position to actually scale its technology to the multi-layer cell needed to power an electric car
  3. Defendants’ positive statements were not reasonable about the company’s overall operations.

The company’s trial will start on March the 8th in court. We personally are bullish on the company’s future growth because of the technology of solid-state lithium-metal batteries, even if they do not qualify for the EV sector at the moment we believe it’s a matter of time till it will be announced otherwise.

Plug Power

VERY BULLISH

Plug Power (NASDAQ: PLUG) looks to be correcting from the one-week strike -9.60% after the +100% stock rise. J.P Morgan gave Plug a target price of $60 after the stock price closed at $69.50. They also add that Plug is expected to increase sales to more than $1.2 billion by 2024 and is their top pick in the hydrogen space.

We personally covered the stock last week where we mentioned the positive news that can contribute to the company’s future success. SK Group investment of $1.5 billion and the joint venture with Renault have made the stock rallied. Hydrogen fuel cells are growing along with the EV sector that by 2025 is expected to replace 30% of the traditional vehicles. We at FDGT believe in the long-run growth of the company.

Fuel Cell Energy

BULLISH

Fuel Cell Energy (NASDAQ: FCEL) has also been striking last week but showed signs of recovery -10%. The stock price went as high as $20 and is now back to $15.84. Fuel Cell Energy is as the name suggests a fuel cell power company designing and manufacturing direct fuel cell power plants that run on natural gas. The “blue wave” Senate election results have made the stock parabolic based on speculation and not actual changes to its fundamentals. The exact opposite of what happened to Plug Power was the parabolic move was based on fundamentals.

Boeing

BEARISH

After the tragedy of the Indonesian flight crash with the Sriwijaya Air Boeing 737-500, the investigations still going on and a new team arrived yesterday at the scene. The bad news does not stop there for Boeing (NYSE: BA). On Saturday NASA and Boeing had an unsuccessful test for a giant new rocket that shut down prematurely. The Space Launch System’s four Aerojet Rocketdyne (NYSE: AJRD) was supposed to have its 25 engines remain on fire for eight minutes but instead, they shut down after one minute. Nasa said they do not know why the shutdown occurred and whether is a hardware, software or sensor problem. Many have doubted the rocket’s capabilities before due to its old core-technologies that suggest is 3 year behind schedule. Boeing’s future seems to be unclear regarding the multiple failures that happened in many different areas.

Disclaimer – I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.

Natalya C. - Junior Analyst at FDGT Academy

Natalya C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.