Exelixis and Priceline Impress, while Apple disappoints.
Apple Inc. (APPL)
Apple (AAPL) stocks plunged significantly on Tuesday, which results in the third five-day losing streak of the past month. The stock decreased by 3.2% to $114.64 in regular trading Tuesday and fell for the 10th time in 11 days. Moreover, the company has fallen close to 15% from their high of $134.54 roughly two months ago, meaning an astonishing loss of about $133 billion in paper wealth.
China is viewed by most analysts as the last big market of potential growth for Apple, but investors are concerned over the fierce competition for smarthphones in that area. Despite all of that, analysts remain bullish on the stock with an average rating of “outperform”, while the 18-month price target is close to $149.
PricelineGroup Inc. (PCLN)
Priceline is an American company and commercial website providing online travel and travel related reservations and search services. They claim to help users obtain discount rates online and offering those reservations through its Booking.com, priceline.com and agoda.com brands.
The company reported excellent Q2 profits today and stocks soared dramatically shortly after, resulting in a new high for the year. Priceline reported an adjusted EPS of $12.45 beats by $0.47, and is now up 65.74 at $1349.73 on above average volume. On Tuesday the company had already risen by 13% throughout the year.
The total value of all services purchased through its website rose by 11%. CEO Darren Huston suggests the strong dollar and the weak euro have both affected travel habits. Priceline is European-based and most Europeans are better off staying in Europe, while U.K. travelers decide to go to Europe because of the relatively cheap euro.
Exelixis Inc. (EXEL)
Exelixis is a genomic-based discovery company located in South San Francisco, California. It focuses on the development of drugs, crop protection, and plant biotechnology. Two weeks ago their stocks increased by nearly 50% when their own METEOR study involved testing of their drug Cometriq, which is meant to treat a form of kidney cancer, was approved against Novartis’ Afinitor. According to the top-line data, Cometriq is able to reduce the risk of disease progression or death by 42%, meeting its primary endpoint of a statistically significant improvement in progression-free survival.
This fantastic news has indeed complied very nicely with The I Know First algorithm which gave a bullish signal of 23.62 and a strong predictability indicator of 0.39. The forecast can be seen below.