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Buzz Stocks: Cyberark Software Ltd, Square Inc, and Amazon.com, Inc.

Today's stocks to watch include Cyberark Software Ltd (CYBR), Square Inc (SQ), and Amazon.com, Inc. (AMZN)

Feb 12, 2016 at 9:29 AM
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U.S. stocks look primed to pop thanks to a rebound in crude oil prices. Meanwhile, cybersecurity firm Cyberark Software Ltd (NASDAQ:CYBR), mobile payments company Square Inc (NYSE:SQ), and e-tailer Amazon.com, Inc. (NASDAQ:AMZN) are among the equities in focus today.

  • CYBR reported better-than-expected (and record) earnings last night, but a disappointing guidance prompted no fewer than eight analysts to cut their price targets on the stock. Setting the bar lowest was D.A. Davidson, which slashed its target price to $39 from $46. Against this backdrop, Cyberark Software Ltd is down nearly 12% ahead of the bell, putting it on pace to open at a new annual low. Yesterday, the shares settled at $36.74, after earlier touching $33.89 -- their lowest market in just over a year. Option traders can't be happy with this turn of events. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 6.33 CYBR calls for every put -- a ratio that ranks in the high 94th percentile of its annual range.

  • SQ is pointed over 11% higher in pre-market trading, after Visa Inc (NYSE:V) disclosed a nearly 10% stake in the company. The shares could certainly use the boost. Square Inc settled at $8.62 yesterday, down close to 42% since its all-time high of $14.78 on Nov. 19 -- the day it went public. One group of traders that could take it on the chin today is short sellers. Specifically, roughly 8.3 million SQ shares are sold short, translating to five days' worth of pent-up buying power, at typical daily trading volumes.

  • The web services arm of AMZN has agreed to buy technical computing specialist NICE -- a move that's being well-received on Wall Street. Ahead of the bell, Amazon.com, Inc. is pointed 1.3% higher after landing yesterday at $503.82. Longer term, though, it's been a struggle for the shares, down 27.7% from their all-time high of $696.44 in late December. If today's expected gains eventually give way to this prevailing downward trend, the brokerage bunch could begin to throw in the towel. Currently, 25 of 31 analysts rate AMZN a "buy" or better, compared to six "holds" and not a single "sell" recommendation. Plus, the stock's consensus 12-month price target of $738.13 sits in never-before-seen territory.
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