Diamonds and Dogs
Red Hat (RHT) gets the nod. Plenty of stocks are up following earnings, but Red Hat is the diamond today jumping 10% to new highs after beating and raising guidance for the quarter and full year. Revenue rose 19% year over year. The analysts love the stock with at least six upgrades with price targets as high as $120 a share, but the stock is not cheap trading for 30 times earnings while only growing 20%.
The next shoe to drop. Foot Locker (FL) and Dicks (DKS) are down 6% on comments from a Goldman Sachs analyst saying Nike (NKE) could be nearing a possible direct relationship with Amazon (AMZN) to sell its products. Nike already sells in Amazon and I doubt Nike leaves Foot Locker and Dicks, but shareholders are certainly spooked.