Hot or Not, Stock Market Edition: 06/20/2025

• HOT: Astera Labs (ALAB) has gained over 110% this year; Reddit ( RDDT) takes a new approach to generating ad revenue  
• NOT: Mastercard (MA) drops on an interest rate standstill; Zoetis (ZTS) comes crashing back to earth after a powerful run

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

🔥 HOT: Astera Labs (NASDAQ: ALAB) gained 7.1% on Wednesday, bringing its total return since the beginning of April to an impressive 111.2%. The stock’s recent momentum comes from strategic partnerships with Nvidia and Alchip that aim to expand the reach of Astera Lab’s cutting-edge AI infrastructure. Our metrics have ALAB rated B in both Sentiment and Financials, but D in Safety, which reflects the general uncertainty around innovative tech companies like Astera. Our overall Zen Rating for ALAB is B, and we give the stock a Buy recommendation.

🥶 NOT: Shares of Mastercard (NYSE: MA) dropped 5.4% on Wednesday after the Federal Reserve announced that it was holding interest rates steady. The drop came shortly after a similar 4.6% drop last Friday and leaves MA up a scant 1.8% YTD. Our analysis still has MA as a solid stock, with an A rating in Financials and a B in Momentum. With rates being maintained yet again, however, we give MA a C Zen Rating and a Hold recommendation.

🔥 HOT: Reddit (NYSE: RDDT) gained 5.5% on Wednesday after launching a new ad platform that it says will let brands monitor conversations around their products in real-time across the entire site. The company is hoping to revolutionize its ad experience in a similar way to how Google used AdSense to propel itself to new growth. Our analysis is conservative in that we’re not sure how impactful Reddit’s new approach to ads will be. We give the stock B ratings in Growth, Sentiment, and Financials and an overall Zen Rating of B.

🥶 NOT: After an exciting few months that saw Zoetis (NYSE: ZTS) gain 23.3%, the stock has now lost 10.0% over the last 15 sessions after Wednesday’s 4.1% drop. Stifel downgraded the stock from Buy to Hold and lowered its price target to $160 from $165, which contributed to the selloff. Our research is split on ZTS. On one hand, the stock earns A ratings in Safety and Financials. On the other hand, it gets C ratings across the board in the other components. The company itself looks healthy, but without much growth potential and its momentum flagging a bit, we give ZTS a C Zen Rating and a Hold recommendation.

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