Two former IPO Stocks Of The Week, Dutch Bros (BROS) and Robinhood Markets (HOOD), fell sharply this week, waylaying promising breakouts and signaling a potential shift in the market environment. Dutch Bros stock and Robinhood are both on Investor’s Business Daily’s IPO Leaders screen.
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Other notable stocks on the IPO Leaders screen include Samsara (IOT) and Nu Holdings (NU).
Coffee drive-thru kiosks leader Dutch Bros stock is sharply below its 36.17 buy point in a cup base following this week’s heavy losses. Dutch Bros stock held about 5% below that correct buy trigger.
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Dutch Bros Stock Tumbles, Robinhood Triggers Sell Signal
In the company’s May 7 report, earnings and sales handily topped Wall Street estimates. First-quarter earnings swung to a profit of nine cents per share vs. a penny loss in the year-ago period. Revenue rose 39% to $275.1 million.
Robinhood shares triggered the 7% loss rule below a 20.55 buy point during Thursday’s sharp losses. While shares were rebounding Friday, the breakout’s immediate failure is a bearish sign.
But if the stock is able to add a handle to its cup base, the new entry will be 21.21.
With the company set to turn profitable this year and the stock enjoying strong price action, IBD Stock Checkup shows that Robinhood stock boasts a strong 97 out of best-possible 99 with its IBD Composite Rating. The rating blends key fundamental and technical metrics to help investors easily find top stocks.
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Nu, Samsara Give Up Entries
Nu Holdings rallied Friday, trying to find support around its 50-day line, a key level to watch. Despite the gains, the stock is still below its 12.39 cup-base entry following a brief May 15 breakout attempt.
Nu Holdings provides a digital banking platform, with a newly digital, significantly unbanked Brazilian population offering a rich opportunity.
Similar to Dutch Bros stock, Samsara is squarely below a 40.54 buy point in a cup base, according to IBD MarketSurge pattern recognition, amid a potential four-day losing streak.
Investment in enterprise data systems to leverage generative-AI capabilities is right up Samsara’s alley, though the company approaches the challenge from the cloud. Samsara provides sensors and cloud-based software to manage vehicle fleets and other physical operations through its Internet of Things platform.
Investors should be more prudent following Thursday’s bearish action. During Thursday’s stock market reversal, IBD reduced its recommended market exposure range to 60%-80%.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on top stocks and the stock market.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
