Investors who want to avoid stocks that gained the most on the Nasdaq (QQQ) or S&P 500 (SPY) have two stocks to consider. After their stock price fell significantly, they offered a better entry zone.
In the utility sector, NextEra Energy (NEE) peaked at $80. The stock fell below $70 before closing at $72.81 last week. Markets are reacting negatively to the company’s plans to sell around $2 billion in equity units for $50. The holder of the equity unit gets a contract to buy NEE stock in the future. These debentures are due June 1, 2029.
The $2 billion equity raise strengthens NextEra Energy. Investors already took advantage of the stock’s dip. It supplies around 3 GW of power to data centers. Demand will increase in the years ahead since the information technology age continues to expand.
In fintech, SoFi (SOFI) shares continued to break down. The stock is down by over 25% in the last year. Short interest is 17.71% as bears bet that the continued stock dilution limits SoFi’s profits per share. On June 17, 2024, Qatar Investment Authority sold all SOFI stock (19.8 million shares) for an average price of $6.78.
SoFi may grow its bank products without the Qatar family’s influence from here. But first, it needs to grow its earnings per share.
