BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.
From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Must Read: Warren Buffett's Top 10 Stock Buys
Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.
While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis.
Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.
Must Read: 5 Toxic Stocks to Stay Away From
Amazon.com
Nearest Resistance: N/A¿
Nearest Support: $390¿
Catalyst: Q1 Earnings
E-commerce behemoth Amazon.com (AMZN - Get Report) is up more than 14% on huge volume this afternoon, the end-result of strong first-quarter earnings numbers from the world's biggest online storefront. That's good enough to make Amazon the biggest single gainer on a percentage basis in the entire S&P 500. AMZN lost 12 cents per share last quarter, coming right in line with expectations, but the real pop is being driven by the double-digit top-line growth the firm achieved last quarter. That growth is continuing to accelerate, and management expects a small profit in the second quarter.
The news was good enough to send shares of AMZN to a new 52-week high. Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses.
For traders who want to ride the bullish momentum, there's still time to build a position in AMZN now.
Must Read: 10 New Stocks Billionaire David Einhorn Loves
Pandora Media
Nearest Resistance: 19¿
Nearest Support: $17¿
Catalyst: Q1 Earnings
Internet radio stock Pandora Media (P - Get Report) is seeing a big-volume move today, up about 2% this afternoon following the firm's first quarter numbers release. Pandora lost less money than expected during the quarter, shedding 12 cents per share versus average estimates of 17 cents.
While the reaction is pretty muted this afternoon, Pandora's chart looks solid. Shares have been in a downtrend for most of the last year, but this stock is finally showing signs of a turnaround, with a well-defined uptrend in play now. Shares touched trend line support at $17 at the open this morning, and they've been gaining steam over the course of the session. That makes now a good opportunity to be a buyer.
Must Read: 10 Stocks Carl Icahn Is Buying
Starbucks
Nearest Resistance: $52¿
Nearest Support: $48¿
Catalyst: Q2 Earnings
Last up on our list of high-volume movers is Starbucks (SBUX - Get Report). This mega-cap coffee chain is up almost 5% in this afternoon's trading, boosted by second-quarter earnings results. Starbucks hit its earnings estimates dead-on, bringing in profits of 33 cent per share. The firm also reaffirmed its full-year earnings forecast of $1.55 to $1.57, a range that also fell in line with what Wall Street was looking for.
From a technical standpoint, SBUX has been in a textbook uptrend going back to October. Even with today's big bounce higher, shares remain squarely in that price channel right now. There isn't a lot of upside room between where SBUX sits now and $52 resistance. If you're looking for a buying opportunity, wait for a pullback to trend line support before jumping in
From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Must Read: Warren Buffett's Top 10 Stock Buys
While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis.
Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.
Must Read: 5 Toxic Stocks to Stay Away From
Amazon.com
Nearest Resistance: N/A¿
Nearest Support: $390¿
Catalyst: Q1 Earnings
E-commerce behemoth Amazon.com (AMZN - Get Report) is up more than 14% on huge volume this afternoon, the end-result of strong first-quarter earnings numbers from the world's biggest online storefront. That's good enough to make Amazon the biggest single gainer on a percentage basis in the entire S&P 500. AMZN lost 12 cents per share last quarter, coming right in line with expectations, but the real pop is being driven by the double-digit top-line growth the firm achieved last quarter. That growth is continuing to accelerate, and management expects a small profit in the second quarter.
The news was good enough to send shares of AMZN to a new 52-week high. Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses.
For traders who want to ride the bullish momentum, there's still time to build a position in AMZN now.
Must Read: 10 New Stocks Billionaire David Einhorn Loves
Pandora Media
Nearest Resistance: 19¿
Nearest Support: $17¿
Catalyst: Q1 Earnings
Internet radio stock Pandora Media (P - Get Report) is seeing a big-volume move today, up about 2% this afternoon following the firm's first quarter numbers release. Pandora lost less money than expected during the quarter, shedding 12 cents per share versus average estimates of 17 cents.
While the reaction is pretty muted this afternoon, Pandora's chart looks solid. Shares have been in a downtrend for most of the last year, but this stock is finally showing signs of a turnaround, with a well-defined uptrend in play now. Shares touched trend line support at $17 at the open this morning, and they've been gaining steam over the course of the session. That makes now a good opportunity to be a buyer.
Must Read: 10 Stocks Carl Icahn Is Buying
Starbucks
Nearest Resistance: $52¿
Nearest Support: $48¿
Catalyst: Q2 Earnings
Last up on our list of high-volume movers is Starbucks (SBUX - Get Report). This mega-cap coffee chain is up almost 5% in this afternoon's trading, boosted by second-quarter earnings results. Starbucks hit its earnings estimates dead-on, bringing in profits of 33 cent per share. The firm also reaffirmed its full-year earnings forecast of $1.55 to $1.57, a range that also fell in line with what Wall Street was looking for.
From a technical standpoint, SBUX has been in a textbook uptrend going back to October. Even with today's big bounce higher, shares remain squarely in that price channel right now. There isn't a lot of upside room between where SBUX sits now and $52 resistance. If you're looking for a buying opportunity, wait for a pullback to trend line support before jumping in
By Jonas Elmerraji
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