The stock market closed mixed on Tuesday as investors weighed the latest corporate earnings.
Overall, S&P 500 fell 0.2% to 3,991, while NASDAQ was up 0.1% to 11,095.
Tweet of the Day
I know everyone is saying how bad the first half of 2023 will be, but here's another clue that might not happen.
Total 10-day NYSE advancers to decliners was >2.1 recently. Very rare to see this much market breadth.
6 mos later? S&P 500 never lower and up nearly 16% on average. pic.twitter.com/Tl4TPm0M5m
— Ryan Detrick, CMT (@RyanDetrick) January 16, 2023
Chart of the Day
Our chart of the day is the one-year chart of CrowdStrike (CRWD) as of December 28, 2022, when the stock was at $100. Both Crowdstrike and Zscaler (ZS) anticipate slowing growth in 2023.
These stocks are also in deep downtrends. The trend is your friend and the trend is down.
But with both stocks now selling for a reasonable valuation of around 10x revenue, when they bottom the stocks could grow at the rate revenue does in the long-term.
And the growth rates could be around 35% a year.
CRWD is part of the Aggressive Growth Portfolio. But with a P/E of 50, the stock seems super reasonable.
