Sure, the analyst warned investors that stocks still had downside risk and didn't utter a single peep about fundamentals like earnings, orders, inventory levels or revenues significantly improving anytime soon. Investors shook off the bad news and rushed into the sector, undaunted. Too bad no one had Joseph's back. While investors rushed to buy, the rest of Wall Street's analyst community called his upgrade a rush to judgment. We think that a bottom to semiconductor industry fundamentals is still at least a quarter away and would advise against going overweight semiconductor stocks right now.
Next week is the heart of the semiconductor earnings season.
If one doctor gives you bad news, it's not a bad idea to seek a second opinion. The dot-com bookseller announced a new strategic alliance, gave a few details, and bewildered the analysts who follow the stock. In fact, he thinks it will do well enough to justify maintaining his buy rating on the stock. Prudential Securities analyst Mark Rowen just doesn't agree. Time, as always, will tell who's right.