With no major news events until tomorrow’s U.S. inflation report, analyst-rating actions are moving stocks. Citi cut its rating on Netflix (NFLX) on Tuesday, citing lofty investor expectations for the streaming service in 2024 and 2025.
Cybersecurity firm CrowdStrike (CRWD) will likely continue its uptrend, breaking its Nov. 2021 all-time high of over $281. Morgan Stanley upgraded the stock, along with Tenable (TENB), citing a rise in cybersecurity attacks worldwide. CrowdStrike has new products, including those that use generative AI. This will increase its earnings growth.
Tenable has strong growth prospects in the vulnerability management market. The analyst expects this segment to grow by 12%-13% annually through 2025.
Morgan Stanley also downgraded PayPal Holdings (PYPL) to Equal Weight. It cited the slow pace of implementing key strategic initiatives. For example, expanding Venmo and improving the branded checkout are progressing slowly.
In the gaming platform sector, Unity Software (U) may attract bargain hunters. The company is aggressively cutting 25% of its global workforce. It will restructure to concentrate on its core competencies. This positions the firm toward eventual profitability.
In the online dating sector, Match (MTCH) needs to continue its rally from Tuesday’s trading. Shares rose on reports that activist investor Elliott Investment Management bought $1 billion in MTCH stock. Competitor Bumble (BMBL) may pull back as bears with an 8.60% short interest gain control. Match has a wider reach and more dating websites than Bumble.