Please ensure Javascript is enabled for purposes of website accessibility

These 6 Nasdaq-100 Stocks Jumped More Than 10% Friday

By Dan Caplinger - May 13, 2022 at 3:29PM

Key Points

  • The Nasdaq rebounded sharply on Friday.
  • Six stocks in the Nasdaq-100 Index were up 10% or more.
  • Even with today's gains, all six are still down sharply from their best levels just months ago.

Motley Fool Issues Rare “All In” Buy Alert

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The market is seeing a big bounce.

After months of declines, stock markets often offer investors a day on which they rebound substantially. That day came on Friday, as Wall Street seemed to come to the conclusion that the accelerated downturn in recent weeks had gone too far. Major market benchmarks were all up on the day, and the Nasdaq Composite (^IXIC -1.90%) led the way higher with a gain of 3.3% as of 2 p.m. ET.

However, a number of stocks were up more than 10%. Few of them had any company-specific news supporting their moves, though, and the gains only clawed back a portion of the ground they've lost going back to last year.

Person using thumbprint to unlock laptop.

Image source: Getty Images.

Friday's big winners

Among Nasdaq-100 stocks, the following stocks posted the biggest gains on Friday afternoon:

  • Electric vehicle company Lucid Group (LCID -6.57%) led the way with a 14% rise.
  • DocuSign (DOCU -5.14%) gained almost 13%.
  • Cybersecurity did well, with Zscaler (ZS 3.02%) and CrowdStrike Holdings (CRWD 3.22%) both gaining 11%. Okta (OKTA -1.08%) was higher by 10% on the day.
  • Even Zoom Video Communications (ZM -3.64%) saw a 10% rise on Friday afternoon.

There was precious little in the way of fundamental business news to justify moves in any of these stocks. Indeed, in many ways, it seemed to be the lack of news that motivated the pause in their respective downturns.

Just about all of these stocks have been targets of Wall Street analyst angst in over the past few weeks. Lucid had its stock target cut by 20% on Monday, and it has regularly sported above-average short-selling interest. DocuSign faced multiple downgrades earlier in May amid skepticism about its ability to keep up its momentum from the early stages of the COVID-19 pandemic. Even just today, Zoom got a $30 price target cut from analysts at BTIG, setting a new figure of $150 per share. Zscaler, Okta, and CrowdStrike have seen similar reductions and downgrades recently.

Long-term fundamentals vs. short-term stock prices

What's evident from today's market action is that just as many investors indiscriminately sold these stocks as their share prices fell, so too are some buying them indiscriminately on the way up. The prospects for these companies look promising in the long run, but some of them have stronger prospects than others.

For instance, cybersecurity needs are only becoming more important as geopolitical conflict rises. That should help companies providing those services attract customers, albeit with differing needs potentially driving enterprise clients toward different providers. By contrast, it's unclear how successful Zoom will be in continuing to push people toward videoconferencing, and its efforts to expand the scope of its business have been mixed at best thus far.

Perhaps most importantly, it's crucial not to make too much of one-day gains. Even after today's climbs, all six of the stocks above are down between 12% and 33% over just the past month. They're still down roughly 50% to 85% from their all-time highs, and there's no guarantee that they'll be able to recoup their lost ground ever, let alone within a short period of time.

Optimism is a favorable trait for investors, but preparing for eventualities that fall short of the best-case scenario is a smart thing to do. Whether a stock is rising or falling, it's best to keep your eyes on how the business is likely to perform. That can help you maintain a long-term mindset even amid high volatility in both directions for the stock price.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lucid Group, Inc. Stock Quote
Lucid Group, Inc.
LCID
$18.00 (-6.57%) $-1.26
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$11,172.52 (-1.90%) $-215.19
Okta Stock Quote
Okta
OKTA
$82.13 (-1.08%) $0.90
DocuSign Stock Quote
DocuSign
DOCU
$74.16 (-5.14%) $-4.02
Zscaler Stock Quote
Zscaler
ZS
$136.30 (3.02%) $4.00
Zoom Video Communications Stock Quote
Zoom Video Communications
ZM
$87.63 (-3.64%) $-3.31
CrowdStrike Holdings, Inc. Stock Quote
CrowdStrike Holdings, Inc.
CRWD
$147.23 (3.22%) $4.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
331%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.