10 Hot Stocks to Watch — Friday, August 7, 2026

Datadog tumbled 19% after posting a 36% revenue beat and raising full-year outlook, as investors punished the cloud-monitoring specialist for a major customer's usage reduction and expectations of slower deceleration. The options market turned sharply bearish, with a 0.47 call-to-put ratio and over 2,400 contracts of $230 puts (now in-the-money) flooding the tape ahead of Friday's expiration. Broader tech weakness and Middle East tensions compounded the selloff. Watch the $220 support level; a close below it could accelerate downside toward $210.

SoundHound AI tumbled 8.65% to $5.70 today, erasing Thursday's 26% post-earnings rally after Q2 revenue beat and FY26 guidance raise to $230–260M midpoint. Despite the sharp reversal, options traders remain aggressive: call-to-put ratio sits at 8.36 with heavy buying in $7.0–$8.0 strikes expiring tomorrow and August 21, signaling conviction in a rebound. Watch $5.83 support (52-week low) and the $7.0 call strike as pivotal resistance.

AST SpaceMobile surged today after announcing partnerships with Vodafone, Orange, and Deutsche Telekom to deploy satellite broadband across Europe, alongside successful launches of three BlueBird satellites. The company has secured $3.8B in liquidity and maintains $150–200M revenue guidance for 2026, though recent downgrades flagged deployment risks and dilution concerns. Options markets are pricing aggressive upside: call volume is running 5.7-to-1 versus puts, with heavy positioning in $70–$75 strike calls expiring August 7, suggesting traders are betting on a push toward $75 before earnings on August 10.

Arm Holdings surged today on broad semiconductor strength, with call buying accelerating ahead of near-term expiries. Options flow signals conviction: a 4.08 call-to-put ratio and heavy volume in $310 calls expiring Thursday suggest traders expect the chip designer to breach resistance imminently. Wall Street remains divided on whether ARM can reclaim its $450 year-to-date peak or stumble further, but the options market is pricing a near-term leg higher. Watch the $310 level as a pivot—breach confirms bull thesis; a close below $280 resets the narrative.

Moderna slumped 4.26% despite FDA approval of mFlusiva, its first mRNA flu shot for seniors 50+, signaling investor skepticism about near-term commercial impact. Yet options markets tell a different story: call-to-put ratio of 18.38 reveals aggressive positioning, with heaviest volume concentrated in $56–$63 calls expiring August 2026. The disconnect suggests traders view the vaccine as a longer-term diversification play beyond COVID dependence, pricing in potential recovery to $60+ within 18 months.

MARA Holdings slid 4.23% to $11.32 on lackluster sector momentum ahead of Q2 earnings, with bitcoin mining stocks broadly struggling to separate execution from weakness. Options markets show mixed conviction—call volume clusters at $11.50–$12.50 strikes through tomorrow's close, while put interest at $10.50 signals downside protection near recent lows. The stock trades 52% below its 52-week high of $23.45, and sector peer downgrades (Morgan Stanley cut Gemini Space Station by 54%) add pressure. Watch whether earnings can reignite technicals above $12.

Occidental Petroleum jumped 4.14% after posting its strongest free cash flow since 2022 and raising its dividend, while debt fell to seven-year lows. The energy major signaled a sustainable $4 billion annual cash generation pathway by 2030, underpinned by midstream strength and above-guidance production. Options traders are decidedly bullish, with call-to-put ratio at 6.64 and heavy concentration in $60 calls expiring mid-to-late August—just 3.6% above current levels. Watch the $60 strike as key resistance into earnings season.

BA climbed $7.53 to $218.82 today, buoyed by the FAA's long-awaited 737 Max 7 commercial approval—a milestone seven years in the making that clears a major operational bottleneck. Options flow remains mixed with a 1.48 call-to-put ratio, though notable volume concentrated in August $240 calls (2,801 contracts) and $230 puts (2,930 contracts) suggests traders are hedging around the $240 resistance level through early August. Watch the $230 support; breach below could signal profit-taking after the certification pop.

PayPal climbed 3.19% to $59.78, approaching the $60.50 level the board rejected in takeover talks—a technical flashpoint Wall Street is now testing. Options positioning screams conviction: call-to-put ratio of 2.58 with heavy volume in $60–$61 August 2026 calls signals institutional accumulation ahead of earnings. The stock's 79% five-year decline has left it trading near historical support zones that typically catalyze rallies, though weaker growth narratives temper upside enthusiasm. Watch $60 resistance; a close above could unlock further call buying.

Target climbed 3.09% to $144.68, extending a 50% year-to-date rally as investors await second-quarter results on August 19 to confirm the retailer's turnaround momentum. UBS expects comparable sales to accelerate despite tough year-ago comparisons, signaling durability in consumer demand. Options markets show mixed conviction: heavy call volume at $150 (Aug 21) suggests upside targets near resistance, while put activity at $133–$149 indicates hedging ahead of earnings. Watch the $150 level as a near-term breakout marker.