These 13 Nasdaq-100 stocks had the biggest swings up and down after the Fed raised rates. Should you be scared off?

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By Philip van Doorn

Airbnb, eBay and Moderna were among the stocks with the biggest price swings during two wild trading sessions

One day after the Nasdaq Composite Index rose more than 3%, in what appeared to be a positive reaction by investors to the Federal Reserve’s latest moves to fight inflation, U.S. stocks reversed on May 5 with brutal volatility.

Market Extra:As Dow sinks over 1,000 points, signs of panic selling emerge in the stock market

The Nasdaq sank 5% on Thursday, more than reversing its gains over the previous three trading sessions. The tech-weighted index has now fallen 21.3% for 2022 (excluding dividends).

Diving into the index’s large-cap non-financial subset (tracked by the Invesco QQQ Trust (QQQ)), here are the 13 stocks among the Nasdaq-100 that had the biggest two-day swings — 12% or more:

Company                                       Ticker  Two-day high/low price swing  Price change -- May 5  Price change -- 2022  Decline from 52-week high  Date of 52-week intraday high 
Match Group Inc.                               MTCH                          23.3%                 -8.3%               -41.9%                     -57.8%           10/21/2021 
Datadog Inc. Class A                           DDOG                          18.8%                 -6.0%               -37.2%                     -44.0%           11/17/2021 
Cognizant Technology Solutions Corp. Class A   CTSH                          16.4%                -12.8%               -17.0%                     -21.3%           03/22/2022 
Booking Holdings Inc.                          BKNG                          15.6%                  3.3%                -9.5%                     -20.0%           02/16/2022 
eBay Inc.                                      EBAY                          15.2%                -11.7%               -27.8%                     -40.8%           10/22/2021 
Fortinet Inc.                                  FTNT                          14.4%                 -1.0%               -20.8%                     -23.5%           12/29/2021 
Pinduoduo Inc. ADR Class A                     PDD                           14.3%                -11.2%               -30.9%                     -71.9%           06/01/2021 
MercadoLibre Inc.                              MELI                          14.3%                -10.7%               -32.3%                     -53.6%           09/02/2021 
CrowdStrike Holdings Inc. Class A              CRWD                          13.3%                 -9.7%               -11.6%                     -39.4%           11/10/2021 
Zscaler Inc.                                    ZS                           12.7%                 -8.9%               -40.7%                     -49.4%           11/19/2021 
Airbnb Inc. Class A                            ABNB                          12.7%                 -8.4%               -14.1%                     -32.7%           11/17/2021 
Moderna Inc.                                   MRNA                          12.1%                 -8.4%               -44.1%                     -71.5%           08/10/2021 
DocuSign Inc.                                  DOCU                          12.0%                 -8.6%               -46.9%                     -74.3%           08/10/2021 
                                                                                                                                                                        Source: FactSet 

Click on the tickers for more about each company.

Read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

Jump in or head for the hills?

Buying “on the dips” hasn’t been a very good trading strategy this year:

But there are always investors looking to ride a recovery. If you are one of those, analysts polled by FactSet believe that eight of the volatile stocks listed above are worth a second look.

Leaving the list in the same order, here’s a summary of analysts’ opinions and consensus price targets:

Company                                       Ticker  Share "buy" ratings  Consensus price target  Closing price -- May 5  Implied 12-month upside potential 
Match Group Inc.                               MTCH                   86%                 $122.38                 $76.88                                59% 
Datadog Inc. Class A                           DDOG                   79%                 $179.76                $111.87                                61% 
Cognizant Technology Solutions Corp. Class A   CTSH                   48%                  $93.14                 $73.60                                27% 
Booking Holdings Inc.                          BKNG                   68%               $2,781.75              $2,171.91                                28% 
eBay Inc.                                      EBAY                   41%                  $59.60                 $48.04                                24% 
Fortinet Inc.                                  FTNT                   59%                 $365.24                $284.52                                28% 
Pinduoduo Inc. ADR Class A                     PDD                    80%                  $65.51                 $40.28                                63% 
MercadoLibre Inc.                              MELI                   91%               $1,588.64                $913.22                                74% 
CrowdStrike Holdings Inc. Class A              CRWD                   93%                 $272.75                $180.98                                51% 
Zscaler Inc.                                    ZS                    79%                 $324.60                $190.41                                70% 
Airbnb Inc. Class A                            ABNB                   43%                 $192.50                $143.09                                35% 
Moderna Inc.                                   MRNA                   48%                 $234.47                $142.02                                65% 
DocuSign Inc.                                  DOCU                   48%                 $104.06                 $80.93                                29% 
                                                                                                                                            Source: FactSet 

Don’t miss:With interest rates rising, it’s time to focus on MANG stocks instead of FAANG, according to Jefferies

-Philip van Doorn

 

(END) Dow Jones Newswires

05-07-22 1409ET

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