Last week, trader Todd Gordon included to his position in hot semiconductor stock Nvidia.
Today, he’s seeking to discharge 2 of the leading entertainers that he stated have run their course.
“Two stocks that you might discover surprising are going to be kicked out [of my portfolio],” Gordon, founder of TradingAnalysis.com, informed CNBC’s “Trading Nation” on Wednesday. “The very first one that I wish to cut, unbelievably, is Zoom Communications. We’ve had an excellent run in it. I don’t like the way the stock is trading here from a technical perspective. From a fundamental viewpoint, it’s truly miscalculated.”
Zoom Communications trades at 127 times next year’s profits, well above the 48 times multiple for the IGV software ETF. Gordon added that the stock’s current pullback pushed it below its 50-day moving average, and he sees the possibility of it retesting its 200-day at $303. The stock presently trades at $376.
Gordon is dumping his whole position– 15 shares– of Zoom.
“The other one that I wish to eliminate is Beyond Meat. Once again, an overvalued stock that is losing its strong technical position,” Gordon said, pointing to its rangebound trading in current weeks. “It can’t seem to survive the $144 mark. I hope Beyond returns. I like trading the stock, but I will not get back in till we get back above $150 in a momentum environment.”
Beyond closed Thursday simply below $137 a share. Gordon unloaded his 50 shares of Beyond on Wednesday afternoon.
As he exited Beyond and Zoom, Gordon added a position in Spotify.
“I like this essential story behind it. I like the technical photo here,” he said. “They’re making a huge move into content, streaming material, diversifying far from music, which I believe they did an excellent job warding off all the streaming music services, Apple Music included.”
The stock has seen a “beautiful uptrend” over the long term, came across some debt consolidation and a pullback, and ought to resume its uptrend from here, Gordon stated. He bought 25 shares of Spotify.