We just published a list of the 10 Stocks With Insane Upside According to Reddit and Alibaba Group (NYSE:BABA) ranked 8th on this list.
US stocks edged lower Thursday, snapping a rebound that had lifted the S&P 500 1.3% a day earlier. The S&P 500 fell 0.35% to 7,592.40, the Dow Jones Industrial Average slipped 0.36% to 52,297.09, and the Nasdaq Composite lost 0.39% to 25,366.09, Yahoo Finance reported, as bond yields rose. Traders weighed hot inflation data, the Federal Reserve’s next move and higher oil prices.
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Hot Inflation Keeps the Fed in Focus
The week’s moves have been shaped by interest rates. Tuesday’s hotter-than-expected inflation report convinced traders that the Federal Reserve will raise rates next month, Reuters said. According to CME FedWatch, investors fully price in a hike of at least 25 basis points, with a 13.2% chance of a 50-basis-point move. Several Fed officials have said they are open to a more aggressive path, and Wall Street analysts have raised their forecasts for more and bigger hikes, Yahoo Finance said.
Wednesday’s rebound showed how quickly sentiment can swing. The S&P 500 gained 1.3% and the Nasdaq Composite 1.6% after results from an AI cloud company eased worries about the durability of the artificial intelligence trade, Reutersreported, with advancing stocks outnumbering decliners by 1.3 to 1 on the NYSE. The Treasury market was closed for Veterans Day, so bond traders could react only on Thursday.
Oil Adds to the Uncertainty
Thursday brought another pressure point. Oil prices climbed after the president said he was no longer interested in a deal with Iran, the Associated Press reported, which complicates the inflation outlook. Higher energy costs feed into the same inflation numbers the Fed is fighting. Even so, the S&P 500 finished with a modest loss and is up 2.9% for the week.
Retail investors are watching the same swings closely, and Reddit threads tend to cluster around names where the gap between price and analyst expectations looks widest. That gap deserves some care. An average price target is a twelve-month estimate pulled from sell-side analysts, it is often revised after earnings, and a handful of outliers can skew the mean. Because upside is measured against the current share price, a sharp drop widens it overnight, while a rally shrinks it just as fast. Readers who follow that chatter can browse our list of undervalued stocks to buy according to Reddit. You may also want to read our ranking of oversold AI stocks where Wall Street analysts are spotting 50%-plus upside.