Take Partial Profits in Fiverr (FVRR). Sell Remaining Stake in Domo (DOMO)
We’ve been waiting for a pullback in high growth names and that looks to have begun this week. While it’s hard to say if this is just a gut-check moment, the beginning of an overdue consolidation phase, or stage one of a deeper correction (and even harder to say how long any of the above could last and what the eventual damage will be) it seems prudent to take a few actions today.
Let’s take two swift actions to protect against further downside moves in two stocks.
Fiverr (FVRR) First, sell a quarter of your position in Fiverr (FVRR). The stock has been a rocket ship lately and it’s not at all surprising that it is giving some back. The story is still good but valuation has moved up and it’s time to take partial profits. SELL ONE QUARTER, HOLD REST
Domo (DOMO) We’ve been incredibly patient with Domo (DOMO) and have been through a series of horrendous corrections. With the stock back to where it was trading prior to the pandemic, near what would be typical stop-loss level for us on an initial purchase, and the big-picture story for the stock not necessarily any better (or maybe worse), it’s time to step aside. Of note, management will report next Thursday, June 4. SELL REMAINING HALF