Cloudflare Is On Cloud Nine

Cloudflare Is On Cloud Nine

Happy Friday folks! 

It’s been yet another wild week on Wall Street. Debates around the U.S. debt ceiling continued before finally finding a resolution yesterday, and a Big Tech rally took off just as some stocks were entering into correction territory. 

Having said that, there was not much company-specific news affecting our weekly movers. It seems that market volatility due to fears over rising inflation is the main cause of a lot of the losses this week. If you are worried about your portfolio and are about to hit that sell button, read our analyst Mike's piece on the role of fear in investing here.

Here were the biggest movers in the MyWallSt shortlist this week:

Moving Up ⬆️

Cloudflare (NET) +19.1%

Baozun (BZUN) +10.3%

IMAX (IMAX) +8.3%

Take-Two Interactive (TTWO) +7.7%

Boston Beer Co. (SAM) +7.1%

Moving Down ⬇️

Stitch Fix (SFIX) -10.3%

ShotSpotter (SSTI) -7.4%

MercadoLibre (MELI) -6.8%

GoPro (GPRO) -5.1%

Avalara (AVLR) -4.7%

What investors need to know 

Cloudflare (NET) +19.1% 

Cloudflare shares are on the rise as analysts grow increasingly bullish over the cloud infrastructure company, believing it will disrupt Amazon (AMZN) Web Service (AWS). Last week, Cloudflare announced a host of new products, including Cloudflare R2 Storage, which will allow users to host any kind of file in the cloud. While cloud storage may not be new technology, this product is set to compete with AWS in pricing as Cloudflare intends to attract more clients by charging significantly lower compared to the Big Tech giant. With the cloud storage market expected to reach $222 billion by 2027, any push that puts Cloudflare ahead of AWS is great news for shareholders.

IMAX (IMAX) +8.3% 

Movie stocks are in the spotlight once again after a blockbuster weekend for James Bond’s ‘No Time To Die’ and ‘Venom’ sent IMAX stock soaring. The busy weekend pushed theater stocks across the industry higher on Monday, with IMAX shares jumping 3.3% on the day and continuing to rally throughout the week. IMAX’s global box office totaled a whopping $30 million last weekend, marking its best October three-day period ever, and notched its biggest weekend tally since December of 2019. The hype has shareholders excited as the solid performance suggests that cinema sales volumes are finally returning to normal. 

Growth stocks are traded in for value

While there may have been less company-specific news in our list this week, what we are seeing is a move away from growth stocks as investors prepare for rising inflation across global markets. Shareholders are instead picking up value stocks to reduce the damaging impact a hike in costs for products and services might have on their portfolio. 

Despite these sell-offs, the Nasdaq, S&P 500, and Dow Jones have all jumped between 1% and 2.5%, marking a positive change from September’s losses. A pivotal point in this recovery came yesterday when lawmakers reached a deal to increase the U.S. debt ceiling, which will hopefully be the start of a market recovery. Don’t forget, long-term investors do not need to be overly concerned about this short-term noise. Volatility in your portfolio is an inevitable part of a buy-and-hold strategy. Remember, in the long run, the stock market has always balanced out and grown at an average of 9% over a 10-year period.