Ugly day for two big retail names, $SoFi Tech(SOFI.US) & $Robinhood(HOOD.US).
Amazing day for the AI Infra plays that continue to crush earnings like $Bloom Energy(BE.US) $Seagate Tech(STX.US) $Nuveen Select Tax Free Income Portfolio(NXP.US).I think the broader question here, at this stage of the rally from the lows, is do you think there is an opportunity cost at being in a loser and transitioning it for a winner.The loser, if the company is doing well, usually gets the dip buy because the price is a better bargain.This market is rewarding the winner, even if the earnings multiple is massive (like Intel) or there barely are any earnings (like Bloom) as long as the trajectory continues to show that they will keep winning.So, would you sell all your $SoFi Tech(SOFI.US) to buy a $Sandisk(SNDK.US) or $Micron Tech(MU.US) here? I’m not sure many would, but so far fintech and software have continued to dip even with good earnings as the market simply has rotated to companies that keep putting up strong numbers.Just not sure many have the stomach to buy a chart up 3-4x YTD and sell their bags in fundamentally strong companies just to be in the current winning trade.Source: amit
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