Yo-Yo Stocks: Netflix, Facebook Bounced Back In May

May 30 2014, 2:49pm CDT | by

The first five months have felt like tough sledding in the equity markets and yet the S&P 500 wraps up May sitting at all-time highs. It has been a grind moving to those levels though, and some widely-followed stocks have illustrated the market swings.

Bespoke Investment Group points out Friday that even as volatility measures like the VIX have been downright docile this year, plenty of stocks have experienced significant swings. Momentum” stocks have been at the fore of what limited volatility there has been, and Bespoke highlighted a few dozen that bore the brunt of the market’s stumble starting in early March that have bounced back since the beginning of May. (See “Goldman Warns Growth Chasers The Party Won’t Last Forever.”)

Netflix is one of 51 stocks in the S&P 1500 index identified by Bespoke that have rebounded at least 10% since May 8 on the heels of a decline greater than 10% starting with the March 6 downdraft (see table below). The video streaming service is up 28% over the former period after falling 29% during the latter, and had just four losing days in May.

Another name on Bespoke’s list is Facebook, which fell almost 20% from March 6 to May 8, but has perked up to the tune of a 10.5% gain since. Priceline.com meanwhile, is up 15% since May 8, following a 19% slide in the prior two months.

Not all of the companies that fit the mold are high-fliers. Barnes & Noble has caught a 12% bounce after falling 23%, while Rubicon Technology has recovered 18% but still sits sharply below its 50-day moving average because of its earlier 51% drop.

Few companies mentioned by Bespoke note illustrate the point more than Rackspace Hosting. The provider of cloud computing services dropped nearly 30% over the early March-early May period, before rallying back 36%.

According to Bespoke stocks like Rackspace could be prime targets for fresh pullbacks if markets turn south, with May gains pushing them back above 50-day moving averages. Such moving averages can often act like magnets for stretches of time, especially when stocks are ping-ponging above and below those technical levels.

On the flipside, stocks that have made comebacks but still sit below their 50-day — names on the list like clinical data software firm Medidata Solutions and surplus marketplace Liquidity Services — could be in the midst of a bounce with longer legs, though both declined Friday to finish May with a losing session.

Follow @SchaeferStreet

 
 
 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Need for Speed Reboot is Coming This Fall
Need for Speed Reboot is Coming This Fall
EA will release a complete new Need for Speed this fall. The video game giant just released a teaser video and the first Need for Speed Gameplay video will be revealed in June.
 
 
Google Self-Driving Cars to Hit Public Roads this Summer
Google Self-Driving Cars to Hit Public Roads this Summer
Google announced today that Google Car prototype vehicles will leave the test track and hit the familiar roads of Mountain View.
 
 
Google Search Analytics Launched in Web Master Tools
Google Search Analytics Launched in Web Master Tools
Google officially announced the new Search Analytics feature in Webmaster tools.
 
 
T-Mobile Hits Verizon with new 'Never Settle Trial' Campaign
T-Mobile Hits Verizon with new 'Never Settle Trial' Campaign
In case customers don't feel satisfied, T-Mobile will pay for them to shift back to Verizon