Internet shares outshone the major indexes in listless trading on the stock market today. Despite the small declines, Wall Street remains in a confirmed uptrend.
Meanwhile, Google owner Alphabet (GOOGL) stormed higher and continued to exercise market leadership.
At 3 p.m. ET, the web-advertising and driving-technology firm rose nearly 0.7% and hit a session high of 1,271.72. That rally extended a gain past a 1,201.59 handle entry in a double bottom base to more than 5%. Thus, the megacap tech is exiting the 5% proper buy zone.
Match Group (MTCH) roared more than 18% higher after torching Wall Street estimates with a 156% jump in second-quarter earnings to 41 cents a share. That smashed the consensus view by more than 17%. The operator of multiple online-dating websites scored a 36% rise in revenue to $421.2 million.
That top-line increase matched a 36% increase in Q1. It also represents acceleration in year-over-year growth.
In the prior four quarters, Match.com’s revenue grew 15%, 12%, 19% and 29%.
The Nasdaq composite traded near breakeven. At times the leading equities index has risen a touch higher after being down only 0.2% in early morning trading. The S&P 500 was virtually flat; dairy, department store, managed care, TV, internet content, medical software and airline stocks each rose 1% to offset sharp losses in tobacco, tire, international oil and gas exploration, movie, leisure services and specialty steel alloy names.
The Dow Jones industrial average edged 0.1% lower. Only five of the 30 components fell 1 point or more, including Walt Disney (DIS).
The Innovator IBD 50 (FFTY) exchange-traded fund lost 0.6% to 35.80. On Tuesday, the growth stock-oriented ETF rallied for the fifth time in six sessions, but failed to rebound above the key 50-day moving average. Innovator IBD 50 is up 7.9% year to date, vs. a 7% lift by the S&P 500, excluding dividends.
The ETF rose 34% in 2017.
A Match With The Bulls
Going back to Match, the stock vaulted above its downward-sloping 50-day moving average and now stands less than 6% below a 52-week peak of 48.65.
While the stock may appear to have busted out of a double-bottom base, it would be a flawed one. Why? The recent low of 35.20 did not undercut the base’s first low of 33.48.
Internet Stocks And Stock Checkup
Thus, Match continues to work on the right side of its somewhat awkward-looking base. One may see the recent decline as a long handle on the cup base, enabling a buy point of 44.63. Match is trading around 3% above that entry and thus would be in buy range. However, the handle is excessively deep at 21%.
Keep in mind that the relative strength line is spiking higher but is far from eclipsing the earlier high seen at the start of Match’s base-building period.
According to IBD Stock Checkup, the up/down volume ratio for Match.com is neutral at 1.0. Watch to see if this ratio bullishly climbs above 1.0.
Match also holds a respectable 93 Composite Rating, ranking 5th within IBD’s Internet-Content group. Longtime IBD 50 member Grubhub (GRUB), Alphabet’s two share classes with the tickers GOOG and GOOGL, and Momo (MOMO) hold higher Composite scores. A 47th ranking for Match’s internet content group among 197 IBD industry groups for six-month relative performance also means that Match is in good company.
Grubhub, the leading mobile and online food ordering service, has now risen 21% past a double-bottom base with a 105.78 buy point. This means that some investors who bought at the recent correct breakout point could opt to sell some shares and land a nifty gain. Taking gains at 20% to 25% frees up cash to buy other new promising stock leaders.
The Chicago-based tech firm ranks No. 2 within the IBD 50.
Momo is building a new base. The Chinese social network focuses on video sharing. Momo rallied out of a deep and large cup with handle at 40.55 and ramped up 33% before giving back all of those gains in the past two months.
That kind of wild round-trip of profits further justifies IBD’s offense-style sell rule.
Supernus Sinks On Sales Miss
Elsewhere, Supernus Pharmaceuticals (SUPN) sank 11% and touched its 200-day moving average after reporting Q2 results. While earnings grew a stellar 78%, revenue of $99.5 million, while up 31%, missed Wall Street views. Sales had grown at a clip of 42% to 57% on a year-over-year basis in the prior four quarters.
Therefore, the 31% increase represents mild growth deceleration.
Supernus is testing buying support at the long-term 200-day moving average. See the 200-day line in black in all MarketSmith charts.
HR software play Workday (WDAY), a member of IBD Leaderboard, rallied more than 1% to 134.77, rising further back above an aggressive entry point near 129 in an unusual shakeout + 3 pattern.
