Schaeffer's Trading Floor Blog

Stocks at New Lows: Shutterfly and Zillow

SFLY and Z are just a couple of the Internet stocks hitting new lows today

by 11/29/2011 2:50 PM
Stocks quoted in this article:

It's been an up-and-down day for the major market indexes, with U.S. stocks trading on both sides of the breakeven line. However, today's high/low stats have a distinctly negative slant. The NYSE notes 36 equities at new 52-week lows, compared to just 28 new highs. Meanwhile, the Nasdaq tallies 56 annual lows, and only 16 annual highs. Among the dozens of stocks slipping to bearish technical milestones in today's trading are quite a few Internet names, including photo-sharing firm Shutterfly, Inc. (SFLY - 31.27) and real estate site Zillow, Inc. (Z - 22.44).

SFLY price chartLooking first at SFLY, the stock tagged an intraday nadir of $30.57. The shares have beaten a steady path lower since mid-July, and SFLY has waged a losing battle with resistance at its 10-day moving average over the course of the past month. On a year-to-date basis, the stock has declined 6.9%.

If the lackluster price action persists, SFLY could eventually be vulnerable to a few negative analyst notes. Zacks reports no fewer than 13 "buy" or better recommendations from brokerage firms, compared to just one "hold" and zero "sells." Any downgrades from this group could exacerbate SFLY's technical troubles.

Z price chartMeanwhile, Wall Street newcomer Z touched an all-time low of $22.28 earlier in today's session. The security is now trading well below resistance at its 40-day moving average, which thwarted all of Z's rally attempts from mid-September through late October.

Apparently, quite a few skeptics are looking for Z to continue its quest for record lows. Short interest on the stock edged up by 1% during the most recent reporting period, and now accounts for a notable 10.7% of Z's float. At the equity's average daily trading volume, it would take more than a week for all of these shorted shares to be covered.

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