Competition Analysis | These mooers gained so much in US papertrading contest last week!

Hello, mooers!!

Congrats to these Top 10 mooers who gained most in the US stocks Papertrading Competition last week:

The Federal Reserve's rate cut is favorable for the improvement of liquidity preference, and it is beneficial for the valuation lift of flexible assets such as technology stocks and small and mid-cap stocks. Therefore, we observed an increase in the preference for risk assets among the top three performing traders last week.

For example, one investor profited by buying Tesla's common stock and call options. Tesla's stock rose an impressive 9.3% last week, with a 7.4% increase on September 19th alone. On that day, star tech stocks such as TSMC and Nvidia also rose, mainly due to the Federal Reserve's announcement of a 50 basis point rate cut the day before.

At the same time, fundamentally, there are only about three weeks left until the "Tesla Robotaxi Unveiling Ceremony" on October 10th. Investors and Wall Street analyst teams are highly anticipating this Tesla event, with some short sellers turning bullish due to the potential of the Robotaxi. They are hoping that this significant unveiling ceremony will drive a substantial rebound in Tesla's stock price.

For investors, the Robotaxi Event on October 10th will be an event-driven opportunity. Tesla has the chance to convince investors that the current valuation is reasonable and that the company still has significant growth potential. The stock price  is likely to show strength before the event, but there is uncertainty whether Tesla can meet high expectations and maintain momentum after the event.  

In addition, we have also noticed an investor's purchase of Duolingo. This stock has risen by 56% since August, and the stock has started to gain momentum since the company announced its earnings and raised its full-year performance expectations on August 7th.

Duolingo has raised its revenue forecast for the year to $731.3 million to $738.3 million, representing growth of 37.7% to 39.0%, higher than the previous range of 37.0% to 38.0%. The company has also raised its adjusted EBITDA margin from the previous range of 23% to 24% to 24% to 25%. Due to strong revenue growth and continuous improvement in profitability, the stock price has continued to rise.

However, as the stock price has continued to rise, the valuation has also increased. The current stock price corresponds to a P/E Non GAAP forward of 62 times, which is much higher than the valuation of peers in the same industry. From a technical perspective, the current support level for the stock is at $201, and the resistance level is at $269. Due to the current large number of profitable positions, investors need to be aware of the risks and be cautious about chasing highs.