For his Executive Decision segment of "Mad Money" Thursday, host Jim Cramer spoke with Howard Lerman, founder and CEO of Yext Inc. (YEXT) , a company that's helping to contain the spread of misinformation about the coronavirus.
Lerman announced that for the next 90 days any business can add Yext to their website for free and help customers to get quick and accurate answers to the questions they have. He said by adding Yext search tools, customers can ask any question, from "Are you still open?" to "Does your product kill the coronavirus?"
In the interest of providing sound information, let's get right to the charts of YEXT.
In this daily bar chart of YEXT, below, we can see that prices have been in a downtrend the past 12 months. Prices have nearly been cut in half. The slopes of both the 50-day moving average line and the 200-day moving average line are negative. The daily On-Balance-Volume (OBV) line shows a rise from September to the middle of February even though prices were trending sideways. Since the middle of February prices and the OBV line have moved lower together, telling us that at this time sellers of YEXT are more aggressive.
The 12-day price momentum study shows equal or slightly higher lows from December to March for a bullish divergence when compared to prices making lower lows. This is not a major bullish divergence, but it is a divergence and could generate some upward price movement in the stock in the days and weeks ahead.
In this weekly bar chart of YEXT, below, we can see that prices have been in a downtrend since the middle of 2018 and prices are down to levels not seen since early 2018. The 40-week moving average line is bearish and the weekly OBV line shows a decline from February. The 12-week price momentum study in the lower panel shows that momentum has slowed since October, and this time frame could be meaningful.
In this daily Point and Figure chart of YEXT, below, the software is projecting a potential downside price target in the $9.77 area.
Bottom line strategy: While YEXT seems to have an interesting, useful and timely product, the charts could use some help. Momentum has slowed and that is a positive, but it may not be enough to declare that the downtrend is over and shares should be bought.