It's still a stock market correction, but a rally attempt is underway. So it's time to build up watchlists. Spotify, Rubrik, Uber Technologies, Nutanix and Doximity are among a few growth stocks that are clawing their way back above the 50-day moving averages.
The 50-day moving average is a key support and resistance area. Generally, investors should be looking for stocks above this level when considering possible buys. Sometimes, a break above the 50-day line can offer an early entry.
On the other hand, if these stocks suffered a decisive break of the 50-day line, that would be a negative signal. And the risks are high right now. The stock market is in a correction, though a rally attempt is underway. Investors should be cautious about any new buys.
Market Rally Attempt, Market Correction
Friday marked day three of a market rally attempt for the Nasdaq, but just day one for the S&P 500 and Dow Jones. The Nasdaq could stage a follow-through day as soon as Monday. A follow-through day needn't happen. The stock market has suffered four straight big weekly losses, with the last three capped with a Friday bounce.
But a follow-through day would confirm the rally attempt. The risk of failure would be high, given the sharp sell-off and Trump tariffs headlines whipsawing investors. Still, it's a good idea to buy something on a FTD.
Doximity stock is on the IBD Leaderboard watchlist. Rubrik stock is on the IBD 50.
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Spotify Stock
Spotify stock jumped 8% last week to 574.79 reversing powerfully higher after undercutting a prior buy point on Monday, March 10. On Friday, shares leapt 6.9%, reclaiming the 50-day line and 21-day line.
In a strong bull market, aggressive investors could have used Friday's move as a place to enter. In the current environment, waiting for a follow-through day seems prudent. A downward-sloping trendline, currently around the 600 level, could be another entry. In a couple weeks, SPOT stock could have a new base with a 652.63 traditional buy point.
Shares ticked higher on Monday.
Spotify turned profitable in 2024, with strong growth expected going forward for the music-and-podcast streaming giant.
Rubrik Stock
Rubrik stock spiked 23.2% last week to 70.65, with all of that and more coming on Friday's 27.8% earnings gap, clearing a sliding 50-day line. Aggressive traders could have taken a small position Friday. However, in bad markets, stocks may shine on earnings, then come under pressure, as both Nutanix and Doximity did. At this point, waiting to see if RBRK stock pauses above the 50-day, or keeps building the right side of a V-shaped consolidation may make sense.
Shares edged higher early on Monday.
Rubrik is still unprofitable, but the 2024 IPO's losses are shrinking. Revenue rose 47% in Q4, with growth accelerating for a second straight quarter.
Uber Stock
Uber stock tumbled 6.2% last week to 71.55, but rose 2.9% to just reclaim its 200-day and 50-day line. The ride-hailing and food-delivery giant has an 82.10 cup-with-handle buy point. A strong move above the 21-day line could break the downtrend of the handle, offering an early entry.
Uber shares rose slightly early on March 17.
In addition to market risks, Uber stock also can swing inversely to perceived Tesla robotaxi progress. If Tesla has its own robotaxi service, Uber could be shut out. Uber partners with Waymo, the robotaxi operation owned by Google-parent Alphabet, in some markets buy not others.
For now, Uber's profits have been booming, partly on investments. A big EPS drop is seen in 2025 before rebounding in 20026.
Nutanix Stock
Nutuanix stock fell 1.3% to 69.47 last week, but came well off March 10 lows. On Friday, the cloud-computing network management software maker popped 4.1% to retake its 50-day line.
Shares are still below their 21-day line, and there isn't a clear early entry. NTNX stock gapped up on Feb. 27 following strong earnings and guidance, breaking out to a new high. After a few days of holding the gains, Nutanix fell sharply, tumbling below the 75.80 buy point on March 6, according to MarketSurge.
At this point, Nutanix stock needs more time, perhaps setting up a new base.
Shares rose slightly Monday morning, near the 21-day line.
Doximity Stock
Doximity stock edged down 0.9% last week to 63.38. Shares did pop 4.2% on Friday to close just above the 50-day line. DOCS stock is still slightly below its 10-week moving average. A move above the 21-day line would also clear a downward-sloping trendline, offering an early entry.
Shares rose slightly early on Monday.
A communications tool and more for medical professionals, Doximity skyrocketed 36% on Feb. 7 following strong earnings and guidance, gapping above a 61.75 consolidation buy point. Shares hit a three-year high of 85.21 the following session but then rapidly declined, round-tripping the breakout.
Fiscal Q3 earnings did jump 55%, the best gain in years. Revenue grew 25% to $168.6 million, the third straight quarter of accelerating growth.
In addition to Spotify, Rubrik and other resilient traditional growth stocks, investors should looking broadly. Chinese and European stocks, gold plays and insurers are pockets of market strength right now.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
