The stock market rally before yesterday lasted only two days. Despite Nvidia (NVDA) showcasing its latest artificial intelligence tools and platform, the Nasdaq (QQQ) dropped by 1.7%. The market sent three stocks in sale territory on Tuesday.
In the tourism sector, Royal Caribbean (RCL) fell by around 7.3% after nearing $280 just weeks ago. At $203, RCL stock trades at a 19 times price-to-earnings ratio. The cruise ship operator trades at a discount because markets are expecting lower tourism activity. Trump created tariffs that slow global trade. This risks damaging the economy. Furthermore, U.S. consumers end up paying more when Mexico and Canada boycott U.S. goods. The countries will also retaliate with similar tariffs.
Super Micro Computer (SMCI) is rapidly losing buying momentum. SMCI stock spiked toward $70 after the firm filed its financial statements. This keeps the stock listed on the exchange. At below $38, SMCI trades at a 16.5 times P/E. SMCI’s peers, including Hewlett Packard Enterprise (HPE), HP Inc. (HPQ), and Dell (DELL) are all trading lower.
On March 11, SMCI added Intel (INTC) Xeon 6 chips to its server products.
AppLovin (APP) dropped by 9% yesterday to close at $278.84. Investors are skeptical about its long-term opportunities. Investors may buy APP stock at a fraction of its 52-week high. Its software platform enhances digital marketing for advertisers.
