This Top Stock Pick Is Set to Benefit From $5 Billion AT&T Announcement
Plus, a cheaper AI play and a space sector pick as market conditions shift.
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After the DeepSeak and tariffs drama, there is little new flow hitting the market on Tuesday, and that is positive. It is rather dull action, but there is an old Wall Street saying, "Don’t short a dull market," which appears to be in play.
After a flat start, things picked up, with breadth running 6,750 gainers to 2,500 losers. The Nasdaq 100 QQQ is leading the charge, with the Magnificent Seven MAGS gaining 1.6%. Small caps are filling the gap on the chart but are still lagged.
I haven’t made many big moves lately, but the charts are developing nicely. I’m watching the biotechnology sector closely. That group has lagged for years, but conditions are improving, and it may finally be time for the sector to pick up. Merck MRK is being hit today, and there are concerns that it is losing patent protection for its blockbuster drug, Trulieve. Dan Rosenblum of Shark Biotech believes that Merck will be shopping for some major acquisitions that may finally kickstart the biotech sector.
I recently discussed AST SpaceMobile ASTS as a top play. The stock dipped on news that Starlink was testing its own satellite communication network, but the market soon recognized that ASTS has far superior technology and is now starting beta testing. At the Pebble Beach Golf Tournament, the CEO of AT&T T talked about how they will be spending $5 billion for worldwide connectivity. ASTS is the vehicle for that.
I have a core position in ASTS, but I believe this is a game changer at an early stage, and I will increase my position substantially as opportunities arise. There should be plenty of news flow as the company moves forward.
Another stock I recently highlighted was Snowflake SNOW. Snow took a hit on DeepSeek news, but it is actually a beneficiary of cheaper AI. The stock is breaking out to a new high this morning, and I plan to add it as it heads into earnings on February 26.
A third stock that is still on my radar is in the space sector. Spire Global SPIR trades very thinly and has pulled back after a strong breakout. It has support around $17, and I’m going to build my position in anticipation of upcoming news.
Market conditions look good here, but there is a risk of macro news flow that can shift things very fast. I’m sticking with stocks with good fundamentals that I can add to as charts develop.
At the time of publication, DePorre was long ASTS, SNOW and SPIR.
