The impact of the collapse of the Silicon Valley Bank has been felt in the Financial market. This is not leaving out the stock market in the latest development.
In this post, we’ll look at the top 4 stocks to watch out for after the collapse of the Silicon Valley Bank. Let’s get stuck in the stock market.
TOP STOCKS TO WATCH OUT FOR
1. JP Morgan
Every financial sector stock struggled recently as investors took a ‘shoot-first, ask-questions-later’ approach to the crisis. JP Morgan, as America’s biggest bank, is naturally one which has seen its share price fall. However, its stock was being driven by reports that it could effectively “bailout” SVB by acquiring the company.
JP Morgan shares plunged last week, as the broader financial sector sold-off, off before the stock found support around the 200-week MA. Sellers have taken control of the price upon any push above $145 resistance, while key support is around $125.
2. Goldman Sachs
Goldman Sachs was one of the worst-performing Dow constituents on Friday, amidst the broad sell-off in financial stocks. Goldman Sachs’ sensitivity to the situation is more indirect. However, given the institution is more focused on investment banking, the issue for investors is whether SVB’s troubles are indicative of a weaker investment and business backdrop for tech firms.
Momentum has shifted to the downside for Goldman Sach’s shares, with price breaking to the downside of an ascending wedge pattern. The stock has found support at just below $330 per share. But if that level breaks, a drop below $300 could open up. Resistance is around $360.
3. Roku
Roku is one business that has direct exposure to SVB’s collapse. It has already notified the market that it has $487 million held at the bank, which represents around 26% of its cash and cash equivalents.
Roku shares have pulled back in recent days as the issues at SVB came to light. The stock is now testing upward-sloping trendline support, which if broken, may open a pullback to support at $46 per share. The 50-week moving average is acting as key resistance right now.
4. Roblox
Another company with deposits tied up at SVB is Roblox. The firm disclosed last week that it has around $150 million (5% of total cash) with the bank.
The drop in Roblox shares has been modest so far. However, aside from the issues associated with SVB, the company’s stock remains in a clear downtrend. In the short term, the price does appear supported by an upward-sloping trendline. Resistance appears to be around $46, while support is at $33 and $26 per share.
Closing Thought
Many companies in the U.S has its deposits tied to the Silicon Valley Bank (SVB). Since its collapse, it is important to know how these companies are coping especially for investors.
