Why Vistra, AppLovin and Oracle Are Spiraling Today

• StockStory Top Pick APP -0.11%
• ORCL -5.66% VST -2.99%

With the markets taking investors on a roller coaster ride of late, three technology stocks are on the downward slope today, including Vistra (NYSE: VST), AppLovin (Nasdaq: APP) and Oracle (NYSE: ORCL). The markets have been processing strong fundamental tailwinds against worrisome economic headwinds that throw the fate of short-term interest rates into the balance. While there's no single negative catalyst for their declines, other than some hedge fund selling, these stocks are trading against the herd as the broader stock market moves higher. Let's dive into what is dragging sentiment lower in these three on-again, off-again stocks.

Quick Read

• Vistra (VST) is down 3% today despite being up 22.5% year-to-date as hedge funds including David Tepper and Peter Thiel reduce or exit positions.

• AppLovin (APP) fell below $500 per share after recent highs above $600 following its S&P 500 inclusion and strong Q3 earnings.

• Oracle (ORCL) dropped 5.4% below $200 per share while software peers rose.

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Vistra

Starting with Vistra, the nuclear power stock is reeling by 3% in today's session to below the $170-per-share threshold. YTD Vistra stock is up 22.5%, so investors seemingly have little to fear. But nevertheless, today's sharp drop while the wider stock market is pushing forward could be unsettling.

Nuclear stocks have had the wind at their backs with some regulatory tailwinds of late, but investors must be willing to take a long-term horizon. Famous investors have been selling: According to SEC filings, David Tepper, founder of Appaloosa Management, has recently reduced his exposure to VST stock, while Peter Thiel's investment fund has fled its position in this power stock entirely. Wall Street analysts remain bullish with an average rating of "buy" on Vistra stock, which has an active share buyback program underwway.

AppLovin

Investors are not loving AppLovin's stock today, with shares dipping below $500 per share today before trimming those losses. Nevertheless, this "marketing platform" stock, as the company describes itself, uses an AI engine and is up 59% year-to-date. Earlier this month, AppLovin reported a strong Q3 earnings print, around which time the stock had shot up above the $600-per-share level after muscling its way into the S&P 500 index. Now that the spotlight has shifted, APP stock is taking it on the chin. Wall Street analysts remain bullish, with mostly "buy" ratings attached and an average price target of almost $750 per share, suggesting APP investors will have to wait for the stock to recapture the spotlight before the bulls return.

Oracle

Technology stalwart Oracle is getting caught up in the selling today, losing 5.4% while many of its software peers are rising. Oracle stock, which specializes in cloud infrastructure and AI, has dipped below the $200-per-share threshold but remains up nearly 20% year-to-date. While industry peer Nvidia has dispelled worries of an AI bubble, Oracle could be experiencing some overhang from the risk-off trade.

Similar to APP and VST, today's selling appears to be short-term fear motivated rather than any long-term trend, with Bernstein analysts assigning a $364 price target on ORCL stock with an "outperform" rating.

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