Hot or Not, Stock Market Edition: 05/06/2025

A rolling stone gathers no moss — and stocks in motion tend to stay in motion. Here’s what we’re following RN: 

• HOT: JD.com (JD) gains despite significant competition; MasTech (MTZ) is riding high following better-than-expected earnings
• NOT: Reddit (RDDT) has a pullback; Block, Inc.’s (XYZ) drops following disappointing earnings

P.S. For more stocks making moves, check out our new Zen Ratings Upgrades & Downgrades screener.

🔥 HOT: JD.com (NASDAQ: JD) gained 4.9% by Friday’s close even as competition heats up in the online food-delivery space. The company is well-positioned to parry the increased competition from Alibaba’s Ele.me and Meituan, the former of which is slated for a 10-billion yuan subsidy program. Our analysis sees Value and Growth as JD’s strongest areas right now, earning A scores in both categories. The company is also above average according to our advanced AI analysis. We’re pretty bullish on JD right now and give it an A Zen Rating and a Strong Buy recommendation.

> Learn more about how AI can help your investments

🥶 NOT: Reddit (NYSE: RDDT) pulled back from its post-earnings rally on Friday, losing 4.2% by the closing bell. The company’s earnings report was solid, but its volatility lately raises some concerns for us. Additionally, we’re concerned about its long-term stability given that it dropped by more than 4% on a day when the S&P 500 and Nasdaq were both up 1.5%. Still, Reddit has a strong Growth rating of A and a solid B in Financials. We’re playing it safe and giving RDDT a C Zen Rating and a Hold recommendation.

🔥 HOT: Shares of MasTech (NYSE: MTZ) gained 5.3% on Friday after its first-quarter earnings report exceeded expectations. The company’s EPS and revenue for the first quarter were both above Wall Street’s projections, and the company raised its full-year guidance. Our research gives the company an A score in Growth and B scores in Sentiment and Financials. The stock is now up 3.3% YTD and receives a B Zen Rating and a Buy recommendation.

> Here’s why “Boring Financials” are so crucial for stocks

🥶 NOT: Block, Inc.’s (NYSE: XYZ) stock plummeted on Friday after an abysmal earnings report. The company’s EPS came in at $0.56, a far cry from the consensus estimate of $0.97. Block’s revenue also missed its mark by $414 million, 6.7% below predictions. Block’s issues stem from declining Cash App volume, which has fallen by 32% since last year. The company is blaming the app’s shortcomings on low-income consumers tightening their budgets amid the current economic uncertainty. We see XYZ as a stock to hold right now and give it a C Zen Rating.

What to Do Next?

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