Concerns about the elevated valuations of artificial intelligence (AI) and tech stocks weighed on investor sentiment last week and impacted the Invesco QQQ ETF. Notably, the QQQ ETF has declined 3.99% over the past five days, but is up 19.7% year-to-date.
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What Moved the QQQ ETF?
The QQQ ETF, which tracks the performance of the Nasdaq 100 Index (NDX), declined 0.32% on Friday due to valuation concerns.
In Monday’s pre-market trading, the QQQ ETF was up 1.51% on news that the Senate is nearing a deal to end the government shutdown.
QQQ’s Key Holdings with Highest Upside/Downside Potential
According to TipRanks’ unique ETF analyst consensus, which is based on a weighted average of analyst ratings on its holdings, QQQ is a Moderate Buy. The Street’s average price target of $711.97 for the QQQ ETF implies an upside potential of about 17%.
Currently, QQQ’s five holdings with the highest upside potential are Strategy (MSTR), Dexcom (DXCM), The Trade Desk (TTD), Atlassian Corporation (TEAM), and CoStar Group (CSGP).
Meanwhile, its five holdings with the greatest downside potential are Tesla (TSLA), Micron Technology (MU), Intel (INTC), Applied Materials (AMAT), and CrowdStrike Holdings (CRWD).
Revealingly, QQQ ETF’s Smart Score is eight, implying that this ETF is likely to outperform the broader market.
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