A big website called Benzinga wrote an article about some important companies that lost money before the market opened on a Friday. These companies include Adobe, Coinbase, Ulta Beauty and others. The reason they lost money is because the price of Bitcoin, a type of digital money, went down. When this happens, it can affect other companies that are connected to Bitcoin or use it in their business. So, people who invest in these companies might be sad because their money went down too. Read from source...
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One possible way to approach this task is to use a two-step method. First, we would analyze the article and identify the main factors that affect the stock prices of Adobe, Coinbase, Ulta Beauty and other companies mentioned in the title. Second, we would apply some investment criteria and filters to narrow down our choices and generate a list of potential candidates for investment or trading opportunities.
Step 1: Analyzing the article
The article reports that several big stocks are moving lower in Friday's pre-market session, mainly due to a sharp decline in Bitcoin prices and other factors. The article mentions Adobe, Coinbase, Ulta Beauty as some of the notable examples of companies whose shares fell in pre-market trading. It also provides some details on how much each stock dropped and why they are moving lower. For example, it says that Marathon Digital Holdings shares fell 5.4% to $17.24 amid a pullback in Bitcoin, while Riot Platforms shares fell 4.3% to $10.46 for the same reason. The article also suggests some other stocks to watch and provides a link to its premarket coverage.
Step 2: Applying investment criteria and filters
To narrow down our choices and generate a list of potential candidates, we would apply some investment criteria and filters based on our goals, risk tolerance, time horizon and personal preferences. For example, some possible criteria and filters are:
- Market capitalization: We could filter out small-cap stocks or focus only on large-cap stocks, depending on how much exposure we want to the smaller and more volatile companies in the market.
- Sector: We could focus on specific sectors or industries that we think are performing well or have growth potential, such as technology, healthcare, consumer discretionary, etc. Alternatively, we could diversify our portfolio by investing across different sectors and industries to reduce risk and increase exposure to various opportunities.
- Price performance: We could filter out stocks that are overpriced or underperforming relative to their peers or the market average, using metrics such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, return on equity (ROE), etc. We could also look for stocks that are undervalued or have strong momentum, using indicators such as price-to-book (P/B) ratio, earnings per share (EPS) growth, forward P/E ratio, etc.
- Dividend yield: We could filter out stocks that do not pay dividends or have low dividend yields, unless we are looking for income-generating invest