Could the reopening trade's success come at a cost?<\/p>\n
Bank of America analysts brought that question into focus on Monday in a note upgrading Booking Holdings and downgrading Pinterest and Snap, citing changing tides on the interest rate front that could put a crimp on stay-at-home stocks' valuations.<\/p>\n
"This is not a call that Snap or Pinterest will miss estimates," the note said. "This is a call that stocks could be range bound and we have better reopening ideas."<\/p>\n
Booking Holdings finished trading down nearly 2.5% on Monday, backing off its all-time high set Wednesday. Pinterest fell nearly 1%. Snap lost less than half of 1%.<\/p>\n
"We're \u2026 bullish on the reopening trade, but I guess where we would disagree with the report is that we don't think it comes at the expense of some of these higher-growth companies," Oppenheimer technical analyst Ari Wald told CNBC's "Trading Nation" on Monday.<\/p>\n
Instead, it's likely to come at the expense of higher-dividend-paying, lower-volatility sectors, leaving Pinterest and Snap as the long-term winners, he said.<\/p>\n
As for Booking Holdings, "it has mostly been trading in a very wide range \u2014 aside from that Covid collapse \u2014 between about $1,600 and $2,200 for much of the last four years," Wald said.<\/p>\n