3 Stocks to Watch for the Week of August 28, 2023

What a week.

Nvidia reported earnings better than anyone expected – and many expected that to signal the resumption of the tech rally.

But that didn’t happen, and – with the exception of Nvidia – most tech stocks continued to pull back the day after Nvidia earnings.

Then, Fed Chair Powell gave his annual Jackson Hole speech, where he remained as firmly non-committal as he could be.

Finally, on Friday, the indexes rallied to close higher – leading to both the S&P 500 and Nasdaq (barely) ending higher for the week.

To us, this is a good sign that this momentum could continue into this week.

So, as always,we’ll start the week with three stocks we believe have the highest potential of making big fast moves over the next few days.

The stocks featured today have some very interesting reasons for being on this list…

Fastly, Inc. (FSLY)

Edge cloud computing provider Fastly’s stock movements are puzzling – but in a good way. After releasing better-than-expected second-quarter results about three weeks ago, its stock spiked, which allowed it to resist the broader tech pullback.

But while you would expect the stock price to fall after in tandem with the broader market – that’s not what has happened. Fastly stock has kept rising, and surged by over 15% last week.

There appears to be no apparent external catalyst for last week’s surge – but it doesn’t matter. When you find such a powerful market-defying stock like this, it’s time to jump on for the ride. Just remember to manage your risk and get ready to jump off when the ride stops.

BlackBerry Limited (BB)

BlackBerry stock (which has transitioned from a legacy phone maker to a cybersecurity software company) spiked by 20% last week on news that private equity firm Veritas is considering a potential buyout of the entire company.

Both BlackBerry and Veritas have yet to comment on the news. However, should either of these companies comment, we could see this stock make another big spike – especially considering that Blackberry once traded at over $144 back in 2008 (it closed at $5.23 last week).

Of course, this makes it a highly speculative play – so please adjust your position sizing accordingly.

Farfetch Limited (FTCH)

FarFetch is a luxury goods “e-tailer” that saw its stock jump by 7% last week – after falling 47% the week before.

Yes, you read that right. The stock actually saw half its value wiped out the week before on the back of lackluster second-quarter earnings that showed declining revenue and widening losses. 

However, in our opinion, the earnings miss was not big enough to justify a 47% wipeout – which is probably why the stock recovered somewhat last week. And we believe the stock could continue said recovery this week too – especially since it’s still almost 90% down from its IPO price.

But please manage your risk carefully with this one.

To your wealth,
Felix @ Ace of Investing