Here’s what’s hot and what’s not today…
P.S. For more stocks making moves, check out our new Zen Ratings Upgrades & Downgrades screener.
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🥶 NOT: Roblox (NYSE: RBLX) fell by 6.3% on Friday in what could be only the beginning of a major pullback. The company reportedly spent more than 20% of its operating costs on safety, including a new AI system designed to keep children safe, but the move could be too little too late, given that Louisiana is suing the company over child endangerment. RBLX’s Momentum (A rating) was excellent up until late last month, when the stock started consolidating due to uncertainty over its second-quarter earnings. Now, with Sentiment at an all-time low (D rating), investors are worried that the company could lose its status as the premier children’s gaming platform. We give RBLX a D Zen Rating and a Sell recommendation. The current Sentiment surrounding the stock is enough to give us pause, but its overinflated price makes it an easy sell.
🔥 HOT: Salesforce (NYSE: CRM) began to right the ship on Friday, gaining 3.9% for its largest single-day gain since the middle of May. The stock’s strong performance was fueled by a rating upgrade from D.A. Davidson and the news that Starboard Value was increasing its stake in Salesforce by 50%. CRM currently gets a B rating in Value, with its current price of $242.44 representing an excellent entry point given its growth potential. We give the stock a B Zen Rating and a Buy recommendation.
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