Buzz Stocks: Alibaba, Fidelity National, and Macy's

Today's stocks to watch include Alibaba Group Holding Ltd (NYSE:BABA), Fidelity National Information Services (NYSE:FIS), and Macy's, Inc. (NYSE:M)

by Josh Selway

Published on Aug 12, 2015 at 9:43 AM
Updated on Jul 2, 2020 at 12:33 PM

U.S. markets are hurting again this morning on more currency news out of China. Among the equities in focus are online retailer Alibaba Group Holding Ltd (NYSE:BABA), financial services provider Fidelity National Information Services (NYSE:FIS), and retailer Macy's, Inc. (NYSE:M).

  • BABA is sliding this morning after the Chinese firm released mixed fiscal first-quarter numbers, including its slowest sales growth in three years. The stock is off 7.7% at $71.38 -- after touching an all-time low of $71.23 -- and is now less than 4 points above its initial public offering price of $68, with traders considering what effects a weakening Chinese economy could have on the e-commerce heavyweight going forward. Despite this dreary performance, brokerage firms have yet to give in on their bullish positions. Twenty-one of 22 analysts covering Alibaba Group Holding Ltd call it a "buy" or better, and the stock's average 12-month price target stands at $106.82 -- a 50% premium to current levels. 

  • FIS has picked up 6.2% this morning to trade at $69.09, on news the company has agreed to purchase software firm SunGard Data Systems Inc. in a more than $9 billion deal. Today's price action puts Fidelity National Information Services 23.6% higher over the past 12 months, and the shares also struck a new all-time high of $69.70 out of the gate. It appears speculators were positioned well for this upward move. FIS' Schaeffer's put/call open interest ratio (SOIR) of 0.14 reveals that call open interest heavily outweighs put open interest among options expiring within three months. What's more, this reading is only 4 percentage points from an annual low. 

  • M's second-quarter numbers failed to meet the Street's expectations this morning, which may have some traders wary about the state of the U.S. consumer. The company also lowered its sales outlook for the year. As such, the shares are down 4.3% at $64.66, and now in negative year-to-date territory. In fact, Macy's, Inc. has slid 12% since hitting an all-time high of $73.61 on July 17. It appears many option traders have been expecting M to struggle. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.53 is only 7 percentage points from an annual bearish extreme. 

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