EU Fines Google, Sprint Eyes Wireless Partners, and Alder Gaps Lower

Reports of a new wireless partnership are propelling Sprint stock higher

Managing Editor
Jun 27, 2017 at 10:31 AM
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U.S. stocks are slightly higher this morning, as Wall Street preps for a busy day. Among specific names on the move today are Google parent Alphabet Inc (NASDAQ:GOOGL), telecommunications specialist Sprint Corp (NYSE:S), and drugmaker Alder Biopharmaceuticals Inc (NASDAQ:ALDR). Here's a quick look at what's moving shares of GOOGL, S, and ALDR.

EU Fine Cuts Into Google

Google stock is down 1% to trade at $961.62, as it deals with the fallout from a record EU fine of $2.7 billion for favoring its own shopping results in search. Alphabet says it's considering an appeal of the ruling.

This is a bump in the road for what has otherwise been a solid year for GOOGL, which is up 21% year-to-date, and crossed the $1,000 level for the first time in early June. However, today's drop has the stock on pace to close below its recently supportive 40-day moving average for the first time since mid-April.

Analysts have stuck by GOOGL as the EU probe has unfolded. Of the 26 brokerages covering the stock, 23 rate it a "buy," and 20 of those are "strong buys."

Wireless Partnership Has Sprint Stock Surging

Sprint stock is up 5.6% to trade at $8.46, after news broke of a possible wireless partnership with Charter Communications and Comcast. On the charts, Sprint is bouncing from its 200-day moving average, and looking to reclaim its perch in positive year-to-date territory.

Options traders have been strongly bullish on S lately. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Sprint boasts a 10-day call/put volume ratio of 4.85, which ranks in the 95th percentile of its annual range. This means calls have been purchased over puts at a near annual-high clip.

Ugly Migraine Drug Data Hits ALDR Shares

Alder Biopharmaceutical stock has cratered, down nearly 18% to trade at $15.40 after late-stage trial data for its episodic migraine drug left investors unimpressed. Today's bearish gap -- and new two-year low of $13.80 -- only adds to what has been a rough year for the biopharmaceutical stock, which is down 26% year-to-date.

Increased attention from short sellers isn't helping the case for ALDR stock. Short interest grew by more than 9% during the last two reporting periods, and over 22% of the stock's total available float is currently sold short. At ALDR's average daily volume, it would take nearly three weeks to repurchase all of those pessimistic positions. 

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