Deep Dive

Philip van Doorn

May 9, 2022, 7:37 a.m. EDT

These 13 Nasdaq-100 stocks had the biggest swings up and down after the Fed raised rates. Should you be scared off?

By Philip van Doorn

One day after the Nasdaq Composite Index rose more than 3%, in what appeared to be a positive reaction by investors to the Federal Reserve’s latest moves to fight inflation, U.S. stocks reversed on May 5 with brutal volatility.

Market Extra: As Dow sinks over 1,000 points, signs of panic selling emerge in the stock market

The Nasdaq (NASDAQ:COMP) sank 5% on Thursday, more than reversing its gains over the previous three trading sessions. The tech-weighted index has now fallen 21.3% for 2022 (excluding dividends).

Diving into the index’s large-cap non-financial subset (tracked by the Invesco QQQ Trust (NAS:QQQ) ), here are the 13 stocks among the Nasdaq-100 (NASDAQ:NDX) that had the biggest two-day swings — 12% or more:

Company Ticker Two-day high/low price swing Price change – May 5 Price change – 2022 Decline from 52-week high Date of 52-week intraday high
Match Group Inc. (NAS:MTCH) 23.3% -8.3% -41.9% -57.8% 10/21/2021
Datadog Inc. Class A (NAS:DDOG) 18.8% -6.0% -37.2% -44.0% 11/17/2021
Cognizant Technology Solutions Corp. Class A (NAS:CTSH) 16.4% -12.8% -17.0% -21.3% 03/22/2022
Booking Holdings Inc. (NAS:BKNG) 15.6% 3.3% -9.5% -20.0% 02/16/2022
eBay Inc. (NAS:EBAY) 15.2% -11.7% -27.8% -40.8% 10/22/2021
Fortinet Inc. (NAS:FTNT) 14.4% -1.0% -20.8% -23.5% 12/29/2021
Pinduoduo Inc. ADR Class A (NAS:PDD) 14.3% -11.2% -30.9% -71.9% 06/01/2021
MercadoLibre Inc. (NAS:MELI) 14.3% -10.7% -32.3% -53.6% 09/02/2021
CrowdStrike Holdings Inc. Class A (NAS:CRWD) 13.3% -9.7% -11.6% -39.4% 11/10/2021
Zscaler Inc. (NAS:ZS) 12.7% -8.9% -40.7% -49.4% 11/19/2021
Airbnb Inc. Class A (NAS:ABNB) 12.7% -8.4% -14.1% -32.7% 11/17/2021
Moderna Inc. (NAS:MRNA) 12.1% -8.4% -44.1% -71.5% 08/10/2021
DocuSign Inc. (NAS:DOCU) 12.0% -8.6% -46.9% -74.3% 08/10/2021
Source: FactSet

Click on the tickers for more about each company.

Read  Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

Jump in or head for the hills?

Buying “on the dips” hasn’t been a very good trading strategy this year:

But there are always investors looking to ride a recovery. If you are one of those, analysts polled by FactSet believe that eight of the volatile stocks listed above are worth a second look.

Leaving the list in the same order, here’s a summary of analysts’ opinions and consensus price targets:

Company Ticker Share “buy” ratings Consensus price target Closing price – May 5 Implied 12-month upside potential
Match Group Inc. (NAS:MTCH) 86% $122.38 $76.88 59%
Datadog Inc. Class A (NAS:DDOG) 79% $179.76 $111.87 61%
Cognizant Technology Solutions Corp. Class A (NAS:CTSH) 48% $93.14 $73.60 27%
Booking Holdings Inc. (NAS:BKNG) 68% $2,781.75 $2,171.91 28%
eBay Inc. (NAS:EBAY) 41% $59.60 $48.04 24%
Fortinet Inc. (NAS:FTNT) 59% $365.24 $284.52 28%
Pinduoduo Inc. ADR Class A (NAS:PDD) 80% $65.51 $40.28 63%
MercadoLibre Inc. (NAS:MELI) 91% $1,588.64 $913.22 74%
CrowdStrike Holdings Inc. Class A (NAS:CRWD) 93% $272.75 $180.98 51%
Zscaler Inc. (NAS:ZS) 79% $324.60 $190.41 70%
Airbnb Inc. Class A (NAS:ABNB) 43% $192.50 $143.09 35%
Moderna Inc. (NAS:MRNA) 48% $234.47 $142.02 65%
DocuSign Inc. (NAS:DOCU) 48% $104.06 $80.93 29%
Source: FactSet

Don’t miss: With interest rates rising, it’s time to focus on MANG stocks instead of FAANG, according to Jefferies

Link to MarketWatch's Slice.