Apple's Latest Deal and GoPro Stock's Huge Rally

Plus, RH stock is taking off after earnings

Josh Selway
Sep 7, 2017 at 9:58 AM
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U.S. stocks are pushing higher out of the gate this morning. Among specific stocks in focus are iPhone maker Apple Inc. (NASDAQ:AAPL), mobile camera specialist GoPro Inc (NASDAQ:GPRO), and home furnishings retailer RH (NYSE:RH). Here's a quick look at what's boosting shares of AAPL, GPRO, and RH.

Warner Music Deal Fails to Boost Apple Stock

Bloomberg is reporting that Apple has come to an agreement with Warner Music Group, giving its Apple Music service access to the music label's sprawling catalog. Still, the stock is slightly lower this morning, last seen trading at $161.89. AAPL shares have gained 50% over the past year, recently enjoying support from their 20-day moving average, as they sit just below their Sept. 1 all-time high of $164.94. 

Options traders have been betting on more upside, too. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 2.40, which ranks above 80% of readings from the past year. This means call buying has been more popular than usual in recent weeks, relative to put buying. 

GPRO Shares Rally on Rosy Outlook

GoPro stock has jumped 21% today to trade at $10.78, after the company gave an upbeat current-quarter outlook. The shares briefly traded in double-digit territory early last month, and quickly retreated, but found support at their 50-day moving average. Of course, the equity remains far removed from its 52-week high of $17.68 from last October. 

But if GPRO can turn things around on the fundamental and technical fronts, there's plenty of room for a round of bullish analyst attention. Specifically, just one of 11 covering brokerage firms recommends buying the security, so upgrades could be in store. 

RH Stock Takes Off After Earnings

RH stock is exploding higher this morning, last seen 46% higher at $72.31, thanks to the company's strong quarterly results and upbeat full-year outlook. A handful of analysts have already weighed in, including Buckingham Research, which upgraded the shares to "buy" from "neutral," and raised its price target to $88 from $46. While RH is now up more than 133% year-to-date, it's still staring up at its July 20 peak of $79.91. 

But if short sellers continue to cover, it could help the shares retake those highs. For example, short interest dropped almost 20% in the last two reporting periods, though one-third of the stock's float is still dedicated to short interest. This leaves ample room for the short-covering trend to continue, which could provide tailwinds for RH. 

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