3 Stocks to Watch on Monday: ARM Holdings plc (ADR) (ARMH), Alphabet Inc (GOOGL) and Groupon Inc (GRPN)

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A recent rally from the S&P 500 and the Dow Jones Industrial Average that has seen the markets set several new records finally blunted on Friday, with the S&P 500 actually declining, and the Dow Jones eking out a mere 10-point gain.

3 Stocks to Watch on Monday: ARM Holdings plc (ADR) (ARMH), Alphabet Inc (GOOGL) and Groupon Inc (GRPN)While earnings season will hit a number of sectors on Monday morning, tech is in focus thanks to big news in Arm Holdings plc (ADR) (NASDAQ:ARMH), Groupon Inc (NASDAQ:GRPN) and  Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL).

Here’s what you need to know:

Arm Holdings plc (ADR) (ARMH)

ARMH shares are shooting higher on Monday amid SoftBank’s (OTCMKTS:SFTBF) confirmed plans to buy out the British semiconductor firm.

Softbank plans to pay $32 billion for the chipmaker, with CEO Masayoshi Son calling ARMH “an excellent strategic fit within the SoftBank group as we invest to capture the very significant opportunities provided by the ‘Internet of Things.'” ARM’s designs are used by a wide number of tech firms, including Apple Inc. (NASDAQ:AAPL) and Qualcomm, Inc. (NASDAQ:QCOM).

While some wondered whether the deal was made because of the Brexit vote hammering down the value of the pound, Son said that while he only first engaged with ARM Holdings just a couple of weeks ago, the Brexit did not affect his decision.

ARMH shares were up 44% in Monday’s premarket trade.

Groupon Inc (GRPN)

GRPN is making a strong move itself Monday thanks to an analyst upgrade.

A Piper Jaffray analyst upgraded Groupon stock to “Overweight” on Monday, giving it a price target of $6, which would be a whopping  71% of upside from Friday’s closing price.

Samuel J. Kemp says, “While the Street is modeling for Groupon’s marketing ramp, it is not accounting for the gross profit generation from newly acquired customers.”

The bullish note continues to praise the company’s narrowed focus and “more rigorous financial and operational standards.”

GRPN shares were up 9% before Monday’s bell.

Alphabet Inc (GOOG,GOOGL)

Google is reportedly working on the next big thing in augmented reality.

After the company shut down a project to develop an Oculus Rift rival, the tech giant went back to the drawing board and designed a standalone headset that could mix augmented and virtual reality and that could have strong appeal among gadget lovers.

According to The Verge, “It’s not clear what that would look like yet, but it could mean the device is closer to Microsoft’s HoloLens than something like the Oculus Rift.”

GOOG shares are down 5% YTD, while GOOGL shares have fallen 5.5% YTD.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/07/3-stocks-to-watch-on-monday-arm-holdings-plc-adr-armh-alphabet-inc-googl-and-groupon-inc-grpn/.

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