Date
stringdate 2022-01-02 00:00:00
2023-12-16 00:00:00
| Symbol
stringclasses 220
values | Article
stringlengths 332
142k
|
|---|---|---|
2023-12-16
|
TSLA
|
By Nivedita Balu
TORONTO, Dec 18 (Reuters) - Bank of Nova Scotia (Scotiabank) BNS.TO is eying North America's booming $1.6 trillion trade with its renewed Mexico bet, a strategy that offers hope but brings risks that have seen many global lenders including Citigroup Inc. C.N scaling back.
Scotiabank's new CEO Scott Thomson, who built a career specializing in Latam, sees the "Mexico First" strategy unveiled last week, offering clients in Canada, the United States and Mexico end-to-end trade finance, helping to differentiate Scotiabank among its Canadian rivals.
The plan will see Canada's No. 4 lender move away from other struggling South American markets. Still, it will expose Scotiabank to a market with unpredictable political risks and where foreign banks have struggled to make inroads, analysts said.
But that is not deterring Scotiabank.
"Trade is a key component of why Mexico is attractive. ... When you see the connectivity of a North American corridor, that's the essence of what we're going after," Scotiabank head of international business Francisco Aristeguieta said in an interview.
Since the three countries hammered out a "New NAFTA" deal in 2020, North American trade has hit $1.6 trillion in 2022 and international companies are moving production closer to customers to tackle supply chain woes. That is expected to add about 1.2% to Mexico's GDP this year.
Aristeguieta, who joined the bank in May, said 14% of Scotiabank's Canadian commercial bank clients have operations in North America and has a 10% market share in Mexico, giving its clients more access to the corridor.
He highlighted auto, energy and medical equipment as attractive sectors. Mexico accounts for more than a third of Scotiabank's international income.
While the strategy shows promise, analysts and shareholders were not convinced as it comes with risks.
"Focusing on that (Mexico) market does make sense. ... But despite those tailwinds, there's still more political, economic, and currency risks in Mexico and Latin America than in Canada or the U.S.," Veritas Investment Research analyst Nigel D'Souza said.
Scotiabank's new strategy is key to reviving confidence in Canada's worst-performing big bank stock this year, which is down 6.6% versus a 5.9% rise in the financial sub-index .SPTTFS. It trades at a forward price-to-earnings ratio of 9.6, compared with an industry average of 10.7, according to LSEG data.
Aristeguieta sees 12% growth in the multinational business in Mexico and 50% of its commercial and wealth banking incremental earnings coming from Mexico by the next five years as trade finance often opens door to higher-margin businesses.
Aristeguieta is paying close attention to Mexico's June 2024 election and is hoping that regardless of the outcome, the country offers a stable regulatory framework for foreign investment.
Some 48 banks operate in Mexico, but just seven control 78% of the market share by total assets. Foreign banks like Citigroup have lost market share to local Mexico banks, prompting the U.S. lender to exit. But after struggling to find a buyer, Citigroup is planning an IPO of its Mexico unit.
Flavio Volpe, president of Automotive Parts Manufacturers Association of Canada said Scotiabank could face competition from China, as exporters setting up factories in Mexico to preserve their sales to the United States rely on Beijing lenders.
Tapping the North American trade drove Canadian Pacific Railway to buy Kansas City Southern to create the first direct railway linking Canada, the United States and Mexico in 2021 in a hotly contested deal.
Volpe said Scotiabank could make it work.
"It's a smart strategy for Scotiabank. Because the (manufacturers) in Mexico are the same ones that they probably have as customers here on a retail basis," he said.
Canada's big five banks in the past five years Canada's big five banks in the past five years https://tmsnrt.rs/3TwojIq
(Reporting by Nivedita Balu in Toronto; Editing by Mark Porter)
((Nivedita.Balu@thomsonreuters.com; X: @niveditabalu;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
M
arket commentators love tortured acronyms or catchy phrases when it comes to big tech stocks. First it was FANG, which was reputedly first used by CNBC's Jim Cramer. That stood for Facebook (now Meta: META), Amazon (AMZN), Netflix (NFLX), and Google (now Alphabet: GOOG, GOOGL). Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Then corporate expansion and a shifting tech landscape caught up with that one too. Facebook and Google changed their names to better reflect the fact that they were no longer one-product affairs, streaming wars made Netflix less of a rapid growth stock, and the once moribund Microsoft (MSFT) took off under Satya Nadella, forcing their inclusion. That led to MAMAA: Meta, Apple, Microsoft, Amazon, and Alphabet becoming the phrase du jour.
Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. That one is credited to a Bank of America (BAC) analyst, but the very fact that over the last few years there have been so many iterations of the way analysts and pundits refer to outperforming big tech stocks shows why such things are of little use.
There is always a group of outperformers but is a fluid thing, almost by definition. Tech is about meeting trends and grabbing opportunities, and while doing that well can lead to rapid, short-term success, there is no guarantee that even the best companies will maintain their outperformance for any length of time. Nor is it true that, as MSFT showed all too well, one that missed out for a while cannot burst back onto the scene with a change of management and/or focus.
So the obvious answer to the question, “Can the Magnificent Seven continue to lead the market in 2024?” is no. That is not because those seven stock can’t or won’t do well. In fact, if the bond and stock markets are right and the Fed cuts rates early next year, they almost certainly will perform well.
But I say the answer is "no" is because if the ever-changing history of who's in this group tells us anything, it is that the name of the group itself will probably have changed twelve months from now. Maybe it will have to include at least one company making weight-loss drugs, or the long-awaited and oft-predicted rise of fuel cells will force the inclusion of a name from that industry, or a new social media platform could take off.
Or maybe what we will be talking about a year from now will be a stock in a field that most of us have never heard of, or have already written off. Let’s face it, how many of you were screaming about AI at this time last year when NVDA was trading at around $150 after it had lost half of its value in around a year? My guess is not that many would have imagined NVDA to have gone from $150 to almost $500 in twelve months.
Then there is the very real chance that the market will fall next year. That isn’t out of the realm of the possible, for several reasons: The fight against inflation is still ongoing and may not have as happy an ending as is now generally assumed. There are two major wars in strategically important parts of the world which could yet get worse. Also, 2024 is an election year in a country where “divided” doesn’t even come close to describing the political environment, and where a win for either party will have a third of the country believing that the end of America is coming. The chance of any or all of those things derailing stocks next year is another subject for another day, but they do have to be considered.
All things considered, the chance of the “Magnificent Seven” -- as that phrase is currently understood -- leading the market higher next year is close to zero. That may be because the market doesn’t go up at all next year, or it may be because trends and developments in technology create a shifting landscape, but either way, it looks like someone will have to come up with a new acronym or cute phrase to describe next year’s stock market leaders.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $584.9 million dollar outflow -- that's a 1.8% decrease week over week (from 125,400,000 to 123,150,000). Among the largest underlying components of IWB, in trading today Tesla Inc (Symbol: TSLA) is up about 1.8%, Eli Lilly (Symbol: LLY) is up about 1.9%, and Johnson & Johnson (Symbol: JNJ) is relatively unchanged. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average:
Looking at the chart above, IWB's low point in its 52 week range is $206.23 per share, with $261.35 as the 52 week high point — that compares with a last trade of $261.13. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
Also see:
Seth Klarman Stock Picks
PTLO Options Chain
FDS Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
STOCKHOLM, Dec 18 (Reuters) - Most Swedes support an ongoing mechanics strike at Tesla's TSLA.O workshops in the Nordic country over the right to collective bargaining, an opinion poll by Novus showed.
The U.S. car maker is facing a backlash from unions and pension funds across the Nordic region over its refusal to accept the demand from trade union IF Metall, whose members at Tesla workshops have been on strike since October.
"A clear majority - or 58% of Swedes - believe the union is right to take the fight with Tesla," said daily Svenska Dagbladet, which commissioned the poll. "Only 20% of those who answered believe the union's industrial action is wrong."
The dispute has sparked sympathy strikes across the Nordics - a key region for Tesla - and prompted some pension funds to sell their shares in the company.
Tesla has avoided collective bargaining agreements with its roughly 127,000 workers, and CEO Elon Musk has been vocal about his opposition to unions.
A clear majority of Swedes polled by Novus said their confidence in Tesla had faded during the conflict, SvD reported.
"The support for the Swedish model is very strong," Novus CEO Torbjorn Sjostrom told the daily.
The Swedish labour market model means employers and unions negotiate working conditions and salaries with very little involvement of the government.
(Reporting by Anna Ringstrom, editing by Terje Solsvik)
((anna.ringstrom@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
It’s the time of year when investors are treated to a slew of market predictions for the next year. The onslaught of those offerings is dizzying. Add those predictions up and it’s likely market participants can absorb hundreds of stock picks for the year ahead. That's neither efficient nor practical for many investors to have portfolios populated in the dozens or hundreds. The good news is that some of the stocks market observers are most bullish on for 2024 are found in several familiar, cost-effective ETFs. Those include the Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM).
The two Nasdaq-100 Index (NDX)-tracking ETFs have delivered stellar showings this year. They have surged 52.22% as of December 15. QQQ and QQQM may not deliver comparable performances in 2024. But more upside is possible for the ETFs next year. That's assuming predictions about some of the funds’ holdings prove accurate.
Familiar Names Could Lift QQQ, QQQM in 2024
This year, QQQ and QQQM benefited in large part from significant exposure to the magnificent seven. That group includes Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. On aggregate basis, that group delivered jaw-dropping showings this year. Some analysts believe it’s possible some of the super seven could build on 2023 gains next year.
Alphabet is “expected to grow as fast as Microsoft, with earnings forecast to be up 15% in 2024, three times as quickly as Apple’s 5% growth. Yet its stock trades for just 20 times earnings, a discount to both Microsoft and Apple’s 30 times, despite gaining 50% this year,” reported Andrew Bary for Barron’s. “Investors have been worried about slowing growth in Alphabet’s cloud computing division, the threat that artificial intelligence poses to its search business, and antitrust scrutiny. Those issues look manageable.”
QQQ and QQQM have long been associated with growth investing. That's rightfully so given the ETFs’ large weights to tech and communication services stocks. But it might surprise some investors to learn the funds have some defensive exposure.
Take the case of Pepsico (PEP), which is the second-largest consumer staples holding in the ETFs behind Costco (COST).
“Fears that weight-loss drugs will curb snacking caused PepsiCo stock, at $168, to drop 7% in 2023. A confident Pepsi, though, said in October that it expects to deliver per-share earnings growth at the top of its high-single-digit annual target in 2024 after a projected 13% gain this year. And the stock trades for 20.6 times next year’s projected earnings, below its five-year average. It also yields 3% and has raised its dividend for 51 straight years, including a 10% increase this past summer,” according to Barron’s.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
TORONTO, Dec 18 (Reuters) - Bank of Nova Scotia (Scotiabank) BNS.TO is eying North America's booming $1.6 trillion trade with its renewed Mexico bet, a strategy that offers hope but brings risks that have seen many global lenders including Citigroup Inc. C.N scaling back.
Scotiabank's new CEO Scott Thomson, who built a career specializing in Latam, sees the "Mexico First" strategy unveiled last week, offering clients in Canada, the United States and Mexico end-to-end trade finance, helping to differentiate Scotiabank among its Canadian rivals.
The plan will see Canada's No. 4 lender move away from other struggling South American markets. Still, it will expose Scotiabank to a market with unpredictable political risks and where foreign banks have struggled to make inroads, analysts said.
But that is not deterring Scotiabank.
"Trade is a key component of why Mexico is attractive. ... When you see the connectivity of a North American corridor, that's the essence of what we're going after," Scotiabank head of international business Francisco Aristeguieta said in an interview.
Since the three countries hammered out a "New NAFTA" deal in 2020, North American trade has hit $1.6 trillion in 2022 and international companies are moving production closer to customers to tackle supply chain woes. That is expected to add about 1.2% to Mexico's GDP this year.
Aristeguieta, who joined the bank in May, said 14% of Scotiabank's Canadian commercial bank clients have operations in North America and has a 10% market share in Mexico, giving its clients more access to the corridor.
He highlighted auto, energy and medical equipment as attractive sectors. Mexico accounts for more than a third of Scotiabank's international income.
Not everyone is convinced.
"Focusing on that (Mexico) market does make sense. ... But despite those tailwinds, there's still more political, economic, and currency risks in Mexico and Latin America than in Canada or the U.S.," Veritas Investment Research analyst Nigel D'Souza said.
Scotiabank's new strategy is key to reviving confidence in Canada's worst-performing big bank stock this year, which is down 6.6% versus a 5.9% rise in the financial sub-index .SPTTFS. It trades at a forward price-to-earnings ratio of 9.6, compared with an industry average of 10.7, according to LSEG data.
Aristeguieta sees 12% growth in the multinational business in Mexico and 50% of its commercial and wealth banking incremental earnings coming from Mexico by the next five years as trade finance often opens door to higher-margin businesses.
Aristeguieta is paying close attention to Mexico's June 2024 election and is hoping that regardless of the outcome, the country offers a stable regulatory framework for foreign investment.
Some 48 banks operate in Mexico, but just seven control 78% of the market share by total assets. Foreign banks like Citigroup have lost market share to local Mexico banks, prompting the U.S. lender to exit. But after struggling to find a buyer, Citigroup is planning an IPO of its Mexico unit.
Flavio Volpe, president of Automotive Parts Manufacturers Association of Canada said Scotiabank could face competition from China, as exporters setting up factories in Mexico to preserve their sales to the United States rely on Beijing lenders.
Tapping the North American trade drove Canadian Pacific Railway to buy Kansas City Southern to create the first direct railway linking Canada, the United States and Mexico in 2021 in a hotly contested deal.
Volpe said Scotiabank could make it work.
"It's a smart strategy for Scotia. Because the (manufacturers) in Mexico are the same ones that they probably have as customers here on a retail basis," he said.
(Reporting by Nivedita Balu in Toronto; Editing by Mark Porter)
((Nivedita.Balu@thomsonreuters.com; X: @niveditabalu;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
There's reason to believe interest rates may decline in 2024, and that usually means it's a good idea to start investing in some interest-rate-sensitive stocks. In that line of thought, here's a look at why UPS (NYSE: UPS), Tesla (NASDAQ: TSLA), and machine vision company Cognex (NASDAQ: CGNX) are good ways to play this theme.
Why rates could fall next year
I'll start with a few words/charts on why rates could be lower. A quick look at the recent inflation data shows a continuation of a downtrend that began in the summer of 2022.
US Inflation Rate data by YCharts
The data was good enough to lower market interest rates, with the benchmark 10-year Treasury rate falling. In addition, note that one-year and two-year rates are notably lower than the six-month rate, implying that the Federal Reserve target rate will be lower in one year than in six months.
10-Year Treasury Rate data by YCharts
While there's no guarantee the bond markets are right, history suggests higher interest rates, over an extended period, will result in lower inflation.
UPS
This stock will suit investors looking for solid returns and some income. UPS will benefit from the effect lower rates will have on the economy. That should result in increased volumes, or at least increased levels of the delivery volumes that management targets. In addition, there's likely to be a positive margin mix impact as customers stop shifting to lower-cost delivery options the way they have been doing in the rising rate environment.
While it's true that UPS enjoyed a couple of boom years during the pandemic (as lockdowns drove customers into buying online), and according to Wall Street analysts, it won't get back to 2022 levels of sales of $100.3 billion until 2025, there are a couple of favorable things to bear in mind.
First, analyst forecasts have UPS generating earnings of $9.71 a share in 2024 and free cash flow (FCF) of $7.1 billion, putting the stock at 16.7 times 2024 earnings and less than 19 times FCF in 2024. Those are reasonable multiples for a stock that will be in volume recovery mode in 2024.
Second, UPS is achieving good traction in its goal of growing revenue in targeted markets like small and medium-sized businesses and healthcare. As such, it will emerge from the slowdown with a better revenue quality than when it entered it. Throw in a 4% dividend yield, and UPS is a solid choice for investors in 2024.
Tesla
Like UPS, Tesla will likely have a stronger underlying business coming out of a rising rate environment. Yes, Tesla is an automaker, meaning rate movements will impact its sales; consumers usually buy cars on credit, so monthly interest payments are a crucial part of the decision.
In contrast to the internal combustion engine (ICE) market of recent decades, the electric vehicle (EV) market is not a low-single-digit type growth market; it's high-growth and relatively early-stage. That distinction impacts the decisions CEO Elon Musk has made this year.
In response to rising rates, Tesla reduced prices to keep cars affordable and maintain market share while enabling volume growth. It's much documented that preserving market share is a crucial aim of a company in the early innings of a multiyear growth market, but what's less discussed is the importance of volume growth in reducing Tesla's cost per unit vehicle.
Image sources: Getty Images.
Volume growth justifies investment in facilities and technology that enables cost per unit vehicle cost reductions. For example, its average vehicle cost decreased from $39,500 in the fourth quarter of 2022 to $37,500 in the third quarter of 2023. That's a major plus in enabling Tesla to produce affordable cars. It stands in good stead to win market share when ICE-heavy manufacturers like Honda and General Motors cut back on plans to produce lower-cost EVs.
With lower rates, Tesla can raise prices and benefit from margin expansion after cutting its cost per vehicle on its established cars.
Cognex
This machine vision company will suit enterprising investors looking for a beaten-up stock with plenty of growth potential. Higher interest rates hit Cognex's main end markets by slowing consumer electronics sales (which impacts investment in developing new production lines that use machine vision) and ICE sales (ICE automakers are pausing investment as well). Slower consumer sales exacerbated the correction in e-commerce warehouse automation spending from the boom of previous years.
Image source: Getty Images.
All these issues hit Cognex in 2023, and its nine months of sales were down by 16% compared to the same period last year, with net income down a whopping 36%.
That said, lower rates will help all these end markets, and all it will take is a few large orders from, say, consumer electronics companies (Apple is a Cognex customer), automakers (ICE, EV, and EV battery manufacturers), or e-commerce companies and the narrative and growth trajectory of Cognex will look dramatically different than it does now.
Should you invest $1,000 in United Parcel Service right now?
Before you buy stock in United Parcel Service, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Cognex, and Tesla. The Motley Fool recommends General Motors and United Parcel Service and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
Electric vehicle (EV) behemoth Tesla TSLA is recalling more than 2 million vehicles on U.S. roads to install new safeguards in their Autopilot system.
U.S. legacy automaker General Motors GM delayed EV drive production at its Toledo plant. This follows GM's October announcement of postponing the production of its electric trucks, including the Chevy Silverado RST and GMC Sierra Denali EVs, to late 2025. GM’s crosstown rival Ford F also announced a reduction in the production of its Lightning Pro model by half. Initially, EV pickups were expected to revolutionize the market by replacing traditional gas-powered trucks with zero-emission alternatives boasting impressive towing capabilities. However, challenges such as higher pricing, charging issues and reduced range during towing have led to consumer hesitation.
Telecom giant AT&T inked deal to purchase EVs from Rivian Automotive RIVN and deploy those to its fleet in early 2024. The collaboration is a bold statement in the ongoing narrative of environmental responsibility and technological advancement.
While TSLA carries a Zacks Rank #4 (Sell), GM, F and RIVN currently carry Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last Week’s Top Stories
Tesla is recalling more than 2 million vehicles after the U.S. safety regulator cited safety concerns. Per the U.S. safety regulator, the autopilot features are either too confusing for the drivers or too easy to misuse. Per the National Highway Traffic Safety Administration (“NHTSA”) filings, the automaker did not agree with the agency’s analysis but has agreed to issue a recall and release an over-the-air update. The agency found that under some circumstances, the Autosteer feature may increase the risk of a collision.
Per the filings, the Autosteer feature provides steering, braking and acceleration support to drivers in certain conditions. However, the drivers are supposed to remain attentive and keep their hands on the steering wheel while using the feature. The Autopilot system uses several controls to find out if the drivers are attentive or not. NHTSA found that the controls may not be sufficient to prevent drivers from exploiting the feature. Tesla will recall a total of 2,031,220 of its Model S, Model X, Model 3 and Model Y. The automaker has started rolling out a software update, which will be free for Tesla’s customers.
Rivian has joined forces with AT&T, which will encompass the integration of RIVN’s EVs into AT&T’s operational fleet. The deal is set to be launched in early 2024 The collaboration is a testament to Rivian’s commitment to sustainability and innovation in the EV sector and also positions AT&T at the forefront of the eco-friendly corporate movement. AT&T's plan to incorporate EVs into its fleet is a key component of its broader ambition to achieve carbon neutrality by 2035. The tie-up will see the telecom leader integrating Rivian's commercial vans and the much-anticipated R1 EVs into its operations.
The alliance between Rivian and AT&T extends beyond the mere purchase of EVs. In a strategic move, AT&T has been designated as the exclusive connectivity provider for all Rivian vehicles across the United States and Canada.After the conclusion of its exclusivity pact with Amazon, this deal with AT&T showcases Rivian’s appeal to a wide range of corporate clients. Rivian remains committed to delivering 100,000 vans ordered by Amazon by 2030. The ongoing relationship with Amazon, coupled with the new deal with AT&T, underscores Rivian's growing influence in the EV market.
General Motors announced a significant delay in the launch of its EV drive production at the Toledo Propulsion Systems plant, a notable setback in the company's EV strategy. Originally slated to begin in early 2024, the production of the electric drives is now rescheduled for the end of 2024, a delay of nine months. Last year, GM committed $760 million to transform the Toledo plant into its first U.S. facility dedicated to EV drive production. The Toledo Propulsion Systems plant, located on Alexis Road, was gearing up to commence building the EV units in the first quarter of 2024. However, this timeline has been pushed to the fourth quarter of the year.
This delay directly impacts approximately 75 temporary workers who were terminated following the plant's cessation of 6-speed transmission production in April to accommodate the new EV drive line. The deal offers Toledo plant's management and workforce additional time to prepare for a crucial transition in automotive manufacturing.
Ford reduced its planned production target of F-150 Lightning to half for 2024. In light of slowing demand, the automaker took a step back after significantly increasing its plant capacity for EVs this year. Ford plans to bring down its average weekly production volume at Rouge Electric Vehicle Center in Dearborn, MI, to 1,600 trucks, down from the current production volume of 3,200 per week.
After receiving 200,000 reservations for the F-150 Lightning in January 2022, Ford announced it would double its production capacity to 150,0000 units per year by mid-2023. However, the demand for EVs has been slower than anticipated due to higher prices and interest rates. The growth in demand lags far behind the expectations of automakers, which compelled them to reduce investments in EVs. On the third-quarterearnings call Ford’s executives shared plans to cancel or delay nearly $12 billion in EV investments due to softening demand for premium vehicles. Year to date, the company has lost almost $3.1 billion on EV spending and anticipates losing a total of $4 billion this year.
Price Performance
The following table shows the price movement of some of the major EV players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
The NASDAQ 100 Pre-Market Indicator is up 5.92 to 16,629.37. The total Pre-Market volume is currently 50,840,748 shares traded.
The following are the most active stocks for the pre-market session:
NIO Inc. (NIO) is +0.72 at $8.70, with 11,608,982 shares traded. NIO's current last sale is 83.65% of the target price of $10.4.
United States Steel Corporation (X) is +11.27 at $50.60, with 8,847,350 shares traded., following a 52-week high recorded in prior regular session.
Arcutis Biotherapeutics, Inc. (ARQT) is +0.74 at $3.18, with 8,086,768 shares traded. ARQT's current last sale is 35.33% of the target price of $9.
CNH Industrial N.V. (CNHI) is -0.01 at $11.47, with 3,395,069 shares traded. CNHI's current last sale is 75.91% of the target price of $15.11.
Gaotu Techedu Inc. (GOTU) is -1.07 at $3.56, with 3,004,839 shares traded. GOTU's current last sale is 154.78% of the target price of $2.3.
ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $14.18, with 2,756,780 shares traded. This represents a .78% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is +0.2199 at $49.46, with 1,180,973 shares traded. This represents a 207.2% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +0.71 at $254.21, with 924,434 shares traded. TSLA's current last sale is 101.68% of the target price of $250.
Ebix, Inc. (EBIX) is -2.24 at $2.69, with 897,523 shares traded. EBIX's current last sale is 5.38% of the target price of $50.
Vodafone Group Plc (VOD) is +0.52 at $8.69, with 885,823 shares traded. VOD's current last sale is 60.24% of the target price of $14.425.
Cleveland-Cliffs Inc. (CLF) is +1.55 at $20.25, with 734,632 shares traded. CLF's current last sale is 95.29% of the target price of $21.25.
ZIM Integrated Shipping Services Ltd. (ZIM) is +0.39 at $10.03, with 718,619 shares traded. ZIM's current last sale is 159.21% of the target price of $6.3.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
There's been no shortage of news and interest surrounding electric vehicle (EV) leader Tesla (NASDAQ: TSLA) this year. The stock has more than doubled so far in 2023. But one Wall Street analyst thinks the stock is heading back down to near where it began the year.
A crash could be coming
On Friday, Guggenheim analyst Ronald Jewsikow raised his firm's price target for Tesla stock, but that doesn't mean he thinks it's a good buy. The new price target of $132 per share was bumped from $125 as Jewsikow acknowledged continued strong sales overseas and the likelihood that Tesla hits its 2023 global production target of 1.8 million EVs. But he still thinks the company is valued way too high. Jewsikow's price target represents a drop of 48% from Friday's closing price.
There's no denying that Tesla is valued with a high price-to-earnings (P/E) ratio. But there's another side to the Tesla story. That side was told by a different Wall Street analyst just one day before the Guggenheim report was released. Deutsche Bank analyst Emmanuel Rosner lowered his firm's price target on Tesla by $15 per share to $260, but still thinks it's a buy.
What should investors believe?
Rosner also thinks the company will reach its 2023 production guidance. He also agrees that there are risks ahead with potential headwinds for growth and earnings. So what gives?
The two analysts agree on the basics, but not the valuation. It comes down to what analysts see beyond the next year or two. That conundrum reflects how investors need to think about Tesla, too.
Rosner sees a new phase of growth coming when Tesla launches its next-generation platform. That could also mark a new slate of EV offerings to stir fresh demand. Lower interest rates could also help consumers decide they can afford to transition to an EV. Tesla also has a burgeoning energy storage business and continues to expand its charging network and battery production. Investors who see those ancillary businesses continuing to grow along with EV sales over the long term might agree with Rosner that Tesla can still be a profitable stock to buy now.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
I
f there were any doubt for when the Federal Open Market Committee (FOMC) would be done with their interest rate hiking cycle, those doubts were blown away last Wednesday when the Fed not only maintained its pivotal policy rate unchanged, but also projected a reduction of 75 basis points in 2024.
Fed Chairman Jerome Powell, in the post-decision press briefing, mentioned that discussions about reducing rates were "clearly a topic of conversation" among policymakers. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked. And now the central bank has given the market some confirmation that it is done with its rate hikes and is poised to initiate reductions soon.
As you can expect, stocks skyrocketed last week as investors celebrated the Fed’s gift. For the week, the S&P 500 gained 2.6% and is now less than 1.6% away from a record close set in January 2022. The Dow Jones Industrial Average added 2.7% during the week, after jumping more than 400 points on Thursday to surpass 37,000 for the first time. The Nasdaq gained 2.9% and is roughly 9% from its all-time intraday high. There is now some assurance that a year-end Santa Claus rally is now more than just a wish.
Investors don't need to look too far to find the source of the recent rally. With the Fed announcing its pivot from its hawkish stance to a dovish policy, growth stocks, particularly the "Magnificent Seven" mega-cap stocks, will now be in vogue. These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today.
Some investors who have missed the massive three-month rally are wondering whether there is still room for gains in 2024. Year to date, Apple -- the largest of the bunch in terms of market cap — has retuned by 58%, while Microsoft the second largest, boasts a gain of 55%. But the impressiveness doesn’t stop there when considering that Tesla (up 134%) has doubled in value, while Meta has enjoyed a remarkable return of 170%.
There are a range of opinions as to whether there is still value to be gained in these mega-cap stocks, which have already been stellar performers. But while their collective valuation might have gotten a bit stretched, their tech leadership in the financial markets remain undeniable. The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence.
While there are some reasons for caution as their collective valuation have soared, investors should position their portfolios to be on the right side of the pivot in 2024, especially amid clearer signs of dampening inflation risk. In that vein, the Fed has done a solid job managing inflation which has dropped to 3.7% year-over-year in November, after hitting the highest levels in decades at over 9% in mid-2022. While the inflation is not yet at the Fed’s 2% target, the Fed has just told us they are done raising rates.
The Magnificent Seven stocks, aptly coined by Bank of America analyst Michael Hartnett, have more than doubled the return of the S&P 500 over the past decade. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, they are well-positioned to continue leading their respective markets in 2024 and making new all-time highs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
Without a doubt, Tesla (NASDAQ: TSLA) has been one of the best investments in the past decade. As of this writing, shares have soared 2,330% since December 2013.
This top automotive stock is now the ninth most valuable company in the world. And it has done this by spearheading the EV (electric vehicle) industry, while also keeping its foot on the gas as it relates to technological innovation.
Even at a current market cap of $750 billion, some investors might be hoping that Tesla's stock can double in the next five or so years. Here's what has to happen for this lofty outcome to become a reality.
Profitable growth is a necessity
Between Q3 2018 and Q3 2023, this business was able to grow revenue from $6.8 billion to $23.4 billion, translating to an unbelievable compound annual rate of 28%. Surely, this top-line metric can be credited for being a key factor driving shares higher.
Over the next five years, there's no question that Tesla will need to continue increasing sales. That's not hard to believe. According to Canalys, EV units represented 16% of total light vehicle sales globally in the first half of 2023. Some estimates call for this figure to jump to 86% by 2030. I don't think anyone doubts that Tesla should continue to be a clear leader in the industry far into the future.
Perhaps more importantly, this company will need to continue finding ways to boost profitability. To its credit, Tesla generated positive net income in 2020, a trend that hasn't changed. This contrasts wildly with the unprofitable EV operations at rival companies. Bolstering manufacturing capabilities and lowering the cost of production has helped Tesla grow the bottom line.
But investors shouldn't easily assume that this business will be able to expand its margins going forward. We've seen macro headwinds, like higher interest rates and inflation, as well as stiff competition, lead Tesla to implement numerous price cuts for its vehicles this year. That's why the operating margin last quarter of 7.6% was meaningfully lower than 17.2% in the year-ago period. Competition isn't going away, which will surely make things more difficult.
Nonetheless, the thesis for investors to own Tesla shares likely incorporates the successful rollout of a worldwide robotaxi service. Should this happen, Elon Musk says margins and profitability would skyrocket, and there would be "quasi-infinite demand."
"The short-term variances in gross margin and profitability really are minor relative to the long-term picture," Musk said on the Q2earnings call "Autonomy will make all of these numbers look silly."
High expectations
Whether autonomy happens or not, it's still easy to believe that Tesla will post strong revenue and earnings growth, even if these numbers rise at a slower clip than in the past.
But the current valuation presents a major headwind getting in the way of the stock doubling in the next five years. Shares currently trade at 77 times trailing earnings. That's a steep price to pay, even for one of the world's most disruptive companies.
If Tesla is successful at finally introducing its full self-driving capabilities to market, an innovative breakthrough that has been delayed multiple times, then the optionality and upside potential is truly massive. However, there is still a ton of uncertainty around this outcome, especially within the next five years.
While it hasn't been a smart idea historically to bet against Elon Musk, I think the current valuation represents the enthusiasm that shareholders have toward this company. It's almost as if investors believe that robotaxis are an inevitability, which is not the case.
Based on its track record of incredible returns, investors might think Tesla shares are automatically going to double in the next five years. But I don't think it's a sure thing.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
By Carolina Mandl
NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters.
San Francisco-based SoMa Equity Partners' long/short fund, led by chief investment officer Gil Simon, soared 48% this year through November, according to a document, versus a 36% gain in the Nasdaq. Last year, the fund was down 33.9%.
Whale Rock Capital's long/short rose 28%, compared with a decline of 43% last year, two sources familiar with the matter said. Tiger Global Management's long/short fund was up 27%, a third source said - it lost 56% last year.
Coatue Management was up 20% through November, a source familiar with the return said. Last year, it was down 19%.
The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence. That compared with 2022 when the index fell 33%.
This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O.
In a letter to investors seen by Reuters, SoMa Equity told its clients it had holdings in Microsoft, Amazon and Meta. Still, those shares were not among SoMa's five top contributors to performance in the last quarter. The hedge fund profited the most from exposure to Universal Music Group NV UMG.AS, Wix.Com Ltd, Uber Technologies Inc UBER.N, Varonis Systems Inc VRNS.O and Atlassian Corporation TEAM.O, it said.
On the short side, bets against consumer-led shorts related to automotive, travel and luxury spending also helped performance, according to the letter.
On average, TMT long/short hedge funds are up 14.2% this year through November, according to data provider PivotalPath, after tumbling 22.4% in 2022.
The numbers show they are on track for a "semi-magnificent" year as on average they were not able to recover from previous losses or beat the Nasdaq.
Jon Caplis, Chief Executive Officer at PivotalPath, which tracks over $3 trillion in hedge funds, said that TMT hedge funds started this year with a lower exposure to the Nasdaq, as they reduced their risk appetite throughout last year amid mounting losses.
"While the Nasdaq has roared back, gaining 36% through November, being levered down caused TMT managers on average to catch much less of this rally," he said.
(Reporting by Carolina Mandl, in New York; editing by Jonathan Oatis and Josie Kao)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
Adds details; paragraphs 2,4,6,7
SHANGHAI, Dec 18 (Reuters) - Electric vehicle maker Nio 9866.HK has signed a pact for an investment of $2.2 billion from CYVN Holdings, an investment vehicle based in Abu Dhabi, the Chinese company said on Monday.
The investment comes as Nio, with its EV sales and profitability under pressure in a price war started by Tesla TSLA.O, has sought to boost efficiency by cutting a tenth of the workforce and deferring non-core projects.
The deal, expected to close in the final week of December, would take CYVN's shareholding to 20.1% of Nio's total issued and outstanding shares, following an investment of $1 billion in July, Nio said in a statement on its website.
That would make CYVN the largest single shareholder of Nio, although founder and chief executive William Li retains the most voting power, with his ownership of Class 'C' ordinary shares.
CYVN, which will subscribe to 294,000,000 newly issued Class A ordinary shares priced at $7.50 each, will also be entitled to nominate two directors to Nio's board, the company said.
The company, whose Nio-branded EVs compete with premium brands such as Mercedes-Benz and BMW in China, has been developing two new brands for mass markets that it aims to bring them to Europe from 2025, its executives have said.
In its drive to become more efficient, Nio is considering a spin-off of its battery production unit while continuing to develop technologies for key components on its own, Reuters has reported previously.
(Reporting by Zhang Yan, Brenda Goh; Editing by Jason Neely and Clarence Fernandez)
((Zoey.Zhang@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
Adds U.S. targets, EV auto sales in the U.S. in the last three paragraphs
Dec 17 (Reuters) - Canada expects to announce this week that all new cars will have to be zero emissions by 2035, a senior government source said, as Ottawa is set to unveil new regulations in the latest example of countries around the world pushing for electrification.
The new rules, known as the Electric Vehicle Availability Standard, would help ensure supply is available to the Canadian market and shorten wait times to get an electric vehicle, the source told Reuters, confirming earlier media reports.
The Canadian provinces of British Columbia and Quebec already have the same regulated sales targets.
Zero-emission vehicles - which include battery electric, plug-in and hydrogen models - must represent 20% of all new car sales in 2026, 60% in 2030 and 100% in 2035, the source said on condition of anonymity.
Officials at Canada's environment ministry declined comment.
Global EV sales now make up about 13% of all vehicle sales and are likely to rise to between 40%-45% of the market by the end of the decade, according to the Paris-based International Energy Agency (IEA).
In the United States, the Republican-led House of Representatives voted earlier this month to bar the Biden administration from moving forward with stringent vehicle emissions regulations that would result in 67% of new vehicles being electric by 2032. The vote drew a veto threat from the White House.
Market leader Tesla TSLA.O sold 325,291 vehicles in the United States during the first half of 2023. General Motors’ GM.N Chevrolet brand was a distant second at 34,943, trailed by Ford F.N, Hyundai 011760.KS and Rivian RIVN.O.
(Reporting by Costas Pitas and Allison Lampert; Editing by Sandra Maler and Lisa Shumaker)
((Costas.Pitas@thomsonreuters.com; Reuters Messaging: @Cpitas on X))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
Below is Validea's guru fundamental report for TESLA INC (TSLA). Of the 22 guru strategies we follow, TSLA rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
TESLA INC (TSLA) is a large-cap growth stock in the Auto & Truck Manufacturers industry. The rating using this strategy is 83% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
DEFINE THE UNIVERSE: PASS
TWELVE MINUS ONE MOMENTUM: PASS
RETURN CONSISTENCY NEUTRAL
SEASONALITY NEUTRAL
Detailed Analysis of TESLA INC
TSLA Guru Analysis
TSLA Fundamental Analysis
More Information on Wesley Gray
Wesley Gray Portfolio
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
In this week's video, I cover need-to-know news items related to Tesla (NASDAQ: TSLA) during the week of Dec. 11. Today's video will focus on Tesla's sales numbers in China and Europe, Tesla's humanoid robot, some announcements that might impact the company in 2024, and a look at Tesla stock from a technical analysis standpoint.
You can find last week's summary here.
*Stock prices used were from the trading day of Dec. 15, 2023. The video was published on Dec. 16, 2023.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Neil Rozenbaum has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
Over the past decade, Ark Investment Management has established its niche on Wall Street by making sizable investments in disruptive and groundbreaking technologies. These include genomic research, robotics, artificial intelligence (AI), autonomous driving, and more. Ark is helmed by founder Cathie Wood, who grabbed the spotlight by investing early in hugely successful companies including Tesla, Nvidia, and Block, among others.
After a punishing 2022, the ARK Innovation ETF has come roaring back, generating returns of 55% so far this year, more than two-and-a-half times the returns of the S&P 500. Driving the results were blockbuster performances by Coinbase Global, Roku, and UiPath, which have gained 290%, 153%, and 93%, respectively. Wood believes this could be just the beginning.
While some of Ark's more high-profile calls seem to get all the headlines, Wood makes the case that biotech company Exact Sciences (NASDAQ: EXAS) has significant upside and will likely rise to $139 by 2027, representing upside of 115% compared to Monday's closing price. Then there's the bull case, which calls for the stock to surge to $208, which would represent gains of 222%.
The stock is already up 31% so far this year, so how likely is it that it will more than triple from here, and how should investors approach Exact Sciences going forward? Let's review the evidence.
Image source: Getty Images.
The case for Exact Sciences
Cancer is the No. 1 cause of death for people under the age of 85, so it's no wonder that a cancer diagnosis can be so devastating. However, recent advances in medicine have changed the landscape, leading to early detection. That combined with a host of new treatments has drastically improved survival rates. Exact Sciences, for its part, "helps detect cancer earlier and provide smarter answers at every step."
The company's Cologuard screening test is the industry standard test for colon cancer, with more than 13 million tests completed to date. However, recent updates by insurers and Medicare could be a catalyst. Policy changes enacted earlier this year stipulate that once a patient tests positive for cancer via a Cologuard test, a follow-up colonoscopy can be administered at no cost to the patient. This will likely encourage patients to take the relatively inexpensive test in advance of more complex procedures.
Exact Sciences' next-generation test, Cologuard 2.0, is showing impressive results in clinical trials, generating even more accurate results than its predecessor, with improved sensitivity in cancer detection and fewer false negatives.
The company has also developed the multi-cancer early detection (MCED) screening test, which can check for multiple types of cancer with a single, minimally invasive blood test.
Perhaps most exciting is the development of Oncotype DX tests, which provide genetic information about the specific patient and the biology of their tumor, which gives physicians much-needed insight into the most effective treatments for each case.
Finally, after being buffeted by macroeconomic headwinds for a couple of years, Exact Sciences appears to be back on track. In the third quarter, revenue climbed 20% year over year. Excluding last year's COVID-19 testing and foreign currency fluctuations, core revenue increased 23%. Perhaps as importantly, excluding one-time charges, Exact Sciences not only swung to a profit but also generated strong operating and free cash flow. Furthermore, management raised the company's full-year guidance, with increases across each of its major segments.
The assumptions in Ark's thesis
Ark's valuation model for Exact Sciences was released in January 2023, outlining three potential outcomes by 2027. The base case suggests the stock will reach $139 by 2027, which would represent gains of 115%. During the same period, the bull case suggests the stock will increase to $208, or gains of 222%. The bear case suggests a price of $74, suggesting upside of just 15%.
While the thesis is based on several variables, the continuing success of Cologuard represents the biggest contributor to its future success, with demand for Oncotype DX as the wildcard.
Exact Sciences is guiding for revenue of roughly $2.48 billion this year, which would represent year-over-year growth of about 19%. In order to achieve Ark's bear case, the company would have to achieve revenue growth of roughly 14% annually by 2027, which seems like an easy bar to clear given its current pace of growth.
To achieve Ark's base, Exact Sciences would have to grow revenue by 21% annually over the coming four years, or 26% to reach its bull case. The base case certainly seems achievable, while the bull case seems like a bit of a stretch -- but still within the realm of possibility.
Will Exact Sciences stock soar 222%?
Given the economic speed bumps of the past couple of years, Exact Sciences has its work cut out for it in order to achieve Ark's bull case. If the company can ramp up its precision oncology revenue -- or more specifically that of Oncotype DX -- it certainly has a shot. Exact Sciences is forecasting revenue from the segment of about $625 million at the midpoint of its guidance, and by Ark's calculations that would have to climb to more than $1.1 billion by 2027.
That's not to say the company won't achieve Ark's bull case price target of $208 -- but it might take a year or two beyond 2027.
Exact Sciences isn't exactly cheap, currently selling for 4 times next year's sales. Despite the recent downturn, the stock has soared 449% over the past decade, an enviable performance and worthy of a slight premium.
With multiple catalysts to fuel its growth, a reasonable stock price, and a strong endorsement from Ark Investment Management, now seems like a great time to buy Exact Sciences ahead of a robust move higher.
Should you invest $1,000 in Exact Sciences right now?
Before you buy stock in Exact Sciences, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Exact Sciences wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Danny Vena has positions in Block, Nvidia, Roku, and Tesla. The Motley Fool has positions in and recommends Block, Coinbase Global, Nvidia, Roku, Tesla, and UiPath. The Motley Fool recommends Exact Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
TSLA
|
Recasts, adds details on Nissan exports plan in paragraphs 1-4
BEIJING, Dec 17 (Reuters) - Nissan Motor 7201.T said on Sunday it would sell China-developed electric vehicles (EVs) globally as it struck a deal with the country's top university to leverage local resources to accelerate research and development on electrification.
The Japanese automaker is considering exporting the line-up of existing internal combustion engine vehicles and upcoming pure electric and plug-in hybrid cars manufactured and developed in China to overseas markets, Masashi Matsuyama, vice president of Nissan Motor and president of Nissan China, told reporters in Beijing.
Nissan is considering aiming at the same markets as Chinese rivals such as BYD 1211.HK, he said.
The company is joining foreign brands including Tesla TSLA.O, BMW BMWG.DE and Ford F.N that are expanding their exports of China-made cars to exploit the country's lower manufacturing costs and increase the capacity utilisation of their factories.
China accounted for just over a fifth of Nissan's worldwide sales of about 2.8 million vehicles over the first 10 months of the year, down from over a third for the same period last year.
Japanese automakers have faced a severe sales challenge this year in China, the world's biggest auto market, due to the popularity of domestic brands and heavy price competition amid a rapid shift to EVs.
Nissan announced it would establish a joint research centre with China's leading Tsinghua University next year, focussing on research and development of EVs, including charging infrastructure and battery recycling.
"We hope that this collaboration will help us gain a deeper understanding of the Chinese market and develop strategies that better meet the needs of customers in China," Nissan President and Chief Executive Makoto Uchida said in a statement.
The launch of the research centre is an extension of joint research efforts the company has had with Tsinghua since in 2016 that focussed on intelligent mobility and autonomous driving technology.
(Reporting by Zhang Yan in Beijing and Daniel Leussink in Tokyo; Editing by Antoni Slodkowski and William Mallard)
((antoni.slodkowski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-15
|
TSLA
|
By Francesca Landini
ROME, Dec 16 (Reuters) - Oil and gas should not be demonised in the medium-term, Elon Musk, the founder of electric car maker Tesla TSLA.O, said on Saturday, but he also said it was important to reduce carbon emissions to preserve the planet.
Musk, speaking at a right-wing political gathering organised by Italian Prime Minister Giorgia Meloni's Brothers of Italy party said: "Climate change alarm is exaggerated in the short term," adding that the environmental movement may have gone too far, causing people to lose faith in the future.
At this month's COP28 climate summit, representatives from nearly 200 countries agreed to begin reducing global consumption of fossil fuels to avert the worst of climate change, signalling the eventual end of the oil age.
Musk said he considers himself an environmentalist and added that it is important that, in the long run, industries reduce the billions of tons of carbon they take from the earth and release into the atmosphere by burning fossil fuels.
"We should not demonise oil and gas in the medium term," he added.
Asked whether his companies would invest in Italy, Musk said he was worried about the country's declining birth rate.
"I think Italy is a great place to invest, but I do want to emphasise that I worry about a low birth rate. If the workforce declines than who will work in the country?" he said.
He called for the Italian government to create incentives for families to have more children, adding that a country could not rely only on immigration flows to fill the gap.
Italy has earmarked around 1 billion euros ($1.09 billion) in next year's budget to tackle the country's demographic crisis. Births in Italy last year fell for the 14th year in a row and were the lowest since the country's unification in 1861.
Speaking about social media site X, Musk played down concerns about a fall in advertising on the platform.
The platform is "already seeing advertisers return", he said.
($1 = 0.9179 euros)
(Reporting by Francesca Landini; Editing by Kirsten Donovan and Jane Merriman)
((francesca.landini@thomsonreuters.com; +39 02 66129437; Reuters Messaging: reutersitaly.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-15
|
TSLA
|
In June 2021, shortly after its mega listing, Lucid Motors (LCID) CEO Peter Rawlinson said in an interview that the company was looking to make the electric vehicle (EV) industry into a “two-horse race” – with Tesla (TSLA), of course, being the other horse in the race.
Cut to 2023, and Lucid is looking to produce only 8,000-8,500 cars this year – which is even below the 12,000 that it projected at the beginning of the year, and a tiny fraction of the 49,000 that it predicted in 2021 ahead of the SPAC merger.
Far from being a potential “Tesla killer,” as it was labeled by some, Lucid is now looking like an “also ran” - and many fear whether the company will even survive the current EV industry slump. The recent departure of its CFO Sherry House is not building any confidence, either.
Here’s how Lucid Motors went from being a market favorite to its current state, where the stock has sunk to near-record lows - and, as of this Monday's rebalancing, will also be booted from the Nasdaq-100 Index ($IUXX).
www.barchart.com
Lucid Motors Was the Largest SPAC Merger
Lucid went public in 2021, during a time of widespread euphoria toward green energy companies. It was the biggest special purpose acquisition company (SPAC) merger up until that point, before Grab (GRAB) took the honors later that year – and Churchill Capital IV stock soared 550% on rumors that it would merge with Lucid Motors. If anyone had any doubt about an EV bubble or a SPAC bubble, it became clearly apparent with Lucid’s mega-merger.
In a rare move, the investors in Lucid’s private investment in public equity (PIPE) transaction paid $15 per share, which - albeit below the then-SPAC stock price - was a 50% premium to the SPAC IPO price, and an affirmation by institutional investors (including Saudi Arabia’s sovereign wealth fund) in the company's valuation and outlook.
By November 2021, Lucid Motors' market cap topped $90 billion, and it looked set to join the league of $100 billion companies, like fellow EV startup Rivian (RIVN) - which also went public that month. In December 2021, Lucid joined the Nasdaq-100 as leading indices looked to make their composition more contemporary amid the green energy pivot.
Just over two years later, Lucid Motors will be removed from the Nasdaq-100 Index. More than just the regular rebalancing of the index, it’s a story of how the company - which is led by a former Tesla engineer, and seems to have a promising product in its Air sedan - has fallen out of favor with markets.
What Went Wrong with Lucid Motors?
Nothing much has actually gone right for Lucid Motors over the last couple of years. To begin with, the global automotive industry faced a severe supply-chain crisis in 2021, which negatively impacted production. The Fed’s relentless rate hikes since 2022, which have since lifted benchmark rates to their highest level dating back to 2007, haven’t helped matters either for growth names like Lucid Motors.
And for Lucid, the troubles are also company-specific. First, and as it has also acknowledged, it hasn’t been able to build brand equity to the extent it would have wanted, which has resulted in fewer-than-expected sales. Lucid’s perennial cash burn and multiple rounds of capital raises have meant that the outstanding share count has exploded, leading to dilution for existing shareholders.
In my view, Lucid was a bit too optimistic about its cars and abilities, which led it to overpromise and underdeliver on multiple occasions. A mere look at its merger presentation would tell us how generously it benchmarked itself to Tesla, both in terms of car quality as well as valuations. What a lot of “wannabe Teslas” failed to envision or incorporate was Tesla’s manufacturing prowess and the brand power - which has largely withstood the self-inflicted damage by CEO Elon Musk, whose “free speech absolutism” hasn’t gone down well with many potential Tesla buyers.
Will Lucid Motors Be Around by 2025?
While many EV and green energy companies might go bankrupt over the next couple of years, Lucid Motors might not - for the simple reason that it had a total liquidity of $5.45 billion at the end of September 2023, which it believes will fund the launch of its Gravity vehicles and also last into 2025.
www.barchart.com
It also has the “Saudi backstop,” as the oil-rich kingdom has so far looked amenable to fund Lucid Motors’ cash burn. Also, unlike many other startup EV companies that have, at best, “me-too” products - or worse, unviable and questionable products, Lucid Motors has a reasonably good offering. MotorTrend awarded the Car of the Year 2022 award to Lucid Air, and said, “The win affirms Lucid Air as the new EV benchmark, with the most advanced electric powertrain available today — technology wholly designed, developed, and manufactured in-house.” Luxury carmaker Aston Martin has also partnered with Lucid to buy electric motors and batteries, which provides credence to Lucid Motors’ claim that it offers a world-class product.
But for now, Lucid Motors is facing a severe demand crunch. While CEO Rawlinson had described low brand awareness, which he blamed for fewer sales, as an “entirely solvable problem,” it is proving to be a lot more complicated. While Lucid Motors could still be a multibagger if the management can execute well, with every passing day even the most ardent LCID stock bulls might be getting disenchanted with the company.
On the date of publication, Mohit Oberoi had a position in: RIVN . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-15
|
TSLA
|
Fool.com contributor Parkev Tatevosian highlights the phenomenal year Tesla's (NASDAQ: TSLA) stock price had in 2023. Also, he includes a discussion of Tesla's longer-term prospects and answers if investors should buy the EV stock for 2024.
*Stock prices used were the afternoon prices of Dec. 13, 2023. The video was published on Dec. 15, 2023.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
Tesla (NASDAQ: TSLA) stock has crushed the market so far this year. However, it's still down over 40% from its all-time high during a time when many other mega-cap growth stocks, like Microsoft, Apple, and Nvidia, are making new all-time highs.
Tesla has what it takes to continue its hot streak going into 2024. But it has to execute across some key aspects of its business. Here's what to watch next year and what the electric car stock needs to do to justify a higher valuation.
Image source: Getty Images.
Managing margins
In hindsight, it's easy to see why Tesla hit an all-time high in early 2022. The once-unprofitable company shocked the investing world with quarter after quarter of consistent profits paired with high revenue growth and high margins.
Tesla carried its torrid growth pace into 2022 -- posting a banner year across the board. But Tesla's margins have since come down, and its top- and bottom-line growth rates have slowed.
Over the last year, Tesla's trailing-12-month revenue has grown by only 17.8%, while its net income is down 14.3%, and its operating margin has fallen by over a third to 11.2%. The following chart does a good job of showing Tesla's massive growth, followed by this year's deceleration.
TSLA Operating Margin (TTM) data by YCharts
Price cuts and lower growth contributed to Tesla's margin decline this year. However, its margins could be lower in the future as Tesla tries to unlock entry into the coveted mass-market electric vehicle market, which would shift the company's strategy toward higher volume, lower-priced vehicles.
In its third-quarter earnings presentation, the company reiterated its goal of a 50% long-term production compound annual growth rate. It would be a worthy trade-off if Tesla achieves solid revenue and earnings growth at the expense of a lower margin.
In the short term, be on the lookout to see if Tesla can improve its operating margin. Longer-term, the challenge will be finding the sweet spot between revenue growth and profitability.
Monetizing AI and robotics
Tesla has done an impeccable job of becoming a profitable and (generally) high-growth electric vehicle company. But it has yet to monetize its artificial intelligence (AI) and robotics ventures -- mainly fully autonomous self-driving vehicles.
For several years now, Tesla has been flaunting its self-driving software. It got to the point where Tesla was thinking far too long-term and had to reel itself in and focus on generating positive cash flow from the Model 3 and then the Model Y. Thankfully, Tesla did that. But the company has a history of throwing money at projects that either pan out later than expected or don't pan out at all.
Tesla has an extremely attractive portfolio of AI and robotics ideas. Cracking the code on vehicles that can safely drive themselves would open the door to electric robotaxis -- an idea integral to the ultra-bullish investment thesis held by Cathie Wood and others.
While you could argue that Tesla could have made a lot more money if it hadn't spent so many resources on self-driving, the long-tail potential is too appealing to ignore. If you invest in Tesla, you have to accept that this will simply be a part of the company's budget and that it may not prove to be a worthwhile investment for some time.
Preserving the balance sheet
Tesla has done an excellent job of keeping debt off of its balance sheet and relying on cash flows to fund both short- and long-term investments. The company has $15.9 billion in cash and equivalents on its balance sheet and just $3.7 billion in long-term debt.
It is impressive that Tesla can keep a largely debt-free balance sheet despite being in the capital-intensive auto industry and supporting expensive long-term projects. One of the biggest things Tesla investors should watch in the coming years is how the quality of the balance sheet responds if there is a prolonged slowdown in demand or if Tesla tries to invest even during a downturn in the business cycle. In other words, what is the extent of the damage to the balance sheet if expenses stay the same or increase, but cash flows decline?
The stock market can be overly focused on the short term. If Tesla barrels ahead full throttle on its multidecade plans even as growth slows, its performance deteriorates, and its leverage increases, then the stock could sell off. Even if investing throughout the market cycle is the right long-term move, it's vital to recognize that the market may be unwilling to think so long-term during a broad sell-off.
Know what you're getting into before you invest
If you invest in Tesla, it's important to understand that the company will probably stick to its long-term plans even at the expense of its short-term performance and the wishes of Wall Street. This mindset is why Tesla stock can suffer steep sell-offs and meteoric gains. When the stars align, Tesla looks like it can do no wrong. But when Tesla stubbornly pursues its goals no matter the market cycle, it can look reckless and borderline irresponsible.
Tesla is one of those companies where understanding the long-term investment thesis and what can move the stock in the short term are equally important. That way, you aren't caught off guard if the stock moves to the upside or the downside.
If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024. But there's also a good chance that Tesla needs more time to return to the growth that investors have come to expect.
In sum, Tesla has the makings of an excellent long-term investment and is certainly worth holding or even buying a small position in. But there's no rush to dive in headfirst and buy the stock hand over first at this time.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
Say you had invested $10,000 in each of the SPDR select sector ETFs on Jan. 1, 2023. There are 11 such ETFs, and they focus on different industries, such as consumer staples, energy, financials, health care, industrials, and technology.
Which one performed the best? Well, here's a chart showing their year-to-date performance:
XLK data by YCharts
As you can see, the Technology Select Sector ETF won. Granted, the Communications Services Select Sector ETF gave technology a run for its money, but more than 37% of that ETF is comprised of Meta Platforms and Alphabet shares. So one could argue those two names belong in the Technology ETF anyway.
At any rate, there's no denying this: Tech stocks were simply on fire in 2023. And for investors looking ahead to 2024 -- particularly those who are underweight tech stocks -- now is the time to think about which tech stocks are worth buying. Here are three names I think can keep the tech rally going in 2024 and beyond.
Image source: Getty Images.
Advanced Micro Devices
Topping my list of tech stocks to buy right now is Advanced Micro Devices (NASDAQ: AMD). The company designs semiconductors for data centers, personal computers, gaming devices, and embedded uses.
Crucially, AMD recently debuted its new MI300X graphics processing unit (GPU). This chip, designed to train large language models, puts AMD in direct competition with Nvidia, the current market leader in AI chips.
As AMD Chief Executive Officer (CEO) Lisa Su said at the recent rollout event for the MI300X:
"If you look at MI300X, we made a very conscious decision to add more flexibility, more memory capacity, and more bandwidth. What that translates to is 2.4 times more memory capacity and 1.6 times more memory bandwidth than the competition."
At any rate, the MI300X should boost AMD's fundamentals, which were already sound. Analysts expect the company to grow revenue to $26.4 billion in 2024, up 16% from this year. Meanwhile, 2024 earnings are estimated to rise to $3.71/share, an increase of 40%.
Yet despite the rosy outlook, AMD isn't the stock for every investor. Shares trade at a price-to-sales ratio of 10, which is more than double its 10-year average of 4.5. So for value-oriented investors, or those unwilling to hold through future volatility, AMD may not be the right choice.
Airbnb
It's now been more than three years since Airbnb (NASDAQ: ABNB) debuted via an initial public offering. And in that time its stock price is almost unchanged.
Granted, there have been ups and downs for sure. But for many investors Airbnb hasn't lived up to the hype.
However, I'm a believer in the stock for one reason: Its fundamentals are fantastic.
Let's start with the top line: revenue. The company has grown trailing 12-month revenue from a low of $3.4 billion in early 2021 to $9.6 billion as of its latest quarter (the three months ending on Sept. 30, 2023). That represents a compound annual growth rate (CAGR) of 41%. And while there's no denying the pandemic is behind that three-fold increase, it's an impressive bounce.
On top of the revenue growth, Airbnb is awash in net income and free cash flow. Net income over the last 12 months stands at $5.5 billion, and free cash flow has risen to $4.2 billion.
ABNB data by YCharts
Those are signs the business is maturing. And as that occurs, Airbnb can return more of its profits and free cash flow to its investors. In May 2023 the company announced a share buyback of $2.5 billion. Over the long term, share repurchases like this (combined with more modest stock-based compensation) will help drive up Airbnb's stock price -- thus rewarding its shareholders.
Tesla
Last on my list is Tesla (NASDAQ: TSLA).
Let me be clear: I'm a long-term Tesla bull, and that's because I believe certain things, like the following:
The world is transitioning away from internal combustion engines, and millions of electric vehicles will take their place in the decades to come.
Tesla will develop game-changing full-self-driving technology.
Elon Musk is a visionary corporate leader, following in the footsteps of other corporate giants like Steve Jobs, Walt Disney, and Henry Ford.
Nevertheless, you don't have to believe all of those points to think Tesla is a smart investment.
In the short term, Tesla's production figures continue to rise. The company is on pace to deliver around 1.8 million EVs in 2023, roughly in line with what Wall Street expected. 2024 estimates vary, but somewhere between 2 million and 2.5 million seems likely -- representing about 25% production growth year-over-year. Not only would those figures help keep revenue growing nicely, but hopefully Tesla can capture some cost savings as production ramps, thus boosting gross margins.
In addition, a new calendar year brings new federal and state tax credits, which could help increase demand. Moreover, a more accommodative Federal Reserve, combined with declining long-term interest rates, may entice prospective buyers off the sidelines and into new Teslas. Finally, the debut of the Cybertruck is yet another sign that Tesla intends to take on competitors -- even in markets traditionally dominated by traditional gas-powered vehicles.
In any event, investors would be wise to consider Tesla, not just for 2024 -- but for the long term.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Airbnb, Alphabet, Nvidia, Select Sector SPDR Trust - The Energy Select Sector SPDR Fund, Select Sector SPDR Trust - The Utilities Select Sector SPDR Fund, and Tesla and has the following options: short December 2023 $78 calls on Select Sector SPDR Trust - The Energy Select Sector SPDR Fund. The Motley Fool has positions in and recommends Advanced Micro Devices, Airbnb, Alphabet, Meta Platforms, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
In this video, Fool.com contributor Parkev Tatevosian discusses the implications of two big news items that impact Tesla (NASDAQ: TSLA) stock investors.
*Stock prices used were the afternoon prices of Dec. 13, 2023. The video was published on Dec. 15, 2023.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
When executives, directors, and major shareholders buy company shares, it's often considered a bullish sign. As per Peter Lynch, while company insiders might sell their shares for any number of reasons, they tend to buy stock for only one reason - because they think the share price is going higher.
Publicly available through Form 4 filings, insider buys by C-suite executives are particularly notable - like the one that just popped up on Ford Motor Company (F) after a long two-year drought of insider buying on the automaker. Here's a closer look.
About Ford
Synonymous with American engineering and an icon of the automobile industry, Henry Ford founded Ford Motor Company in Dearborn, Mich., in 1903. It has gone on to become a global auto giant, designing, manufacturing, and selling cars, trucks, SUVs, electric vehicles, and commercial vehicles. They also offer financing, leasing, and service solutions.
Commanding a market cap of $48.3 billion, Ford stock is up less than 3% on a YTD basis. The stock is underperforming the broader S&P 500 Index ($SPX), up over 22%, by a considerable margin.
www.barchart.com
A Rare C-Suite Buy on Ford Stock
John Douglas Field is the Chief EV, Digital and Design Officer at Ford. Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios.
On Dec. 8, Field purchased 182,000 shares of the company at an average price of $11.0472 per share for a total value of just over $2 million. This marks the first insider buy on Ford stock since Feb. 23, 2021, and the first purchase by a member of the C-suite since April 2020.
Though Ford has underperformed on a YTD basis, the stock is already up more than 8% from Field's Dec. 8 entry price.
Ford's EV Future After UAW Strikes
The UAW strike against Detroit's “Big Three” had a material impact on Ford's operations, but the automaker has since updated its guidance to reflect expected labor costs through 2028, along with a reduction to its earnings guidance. This offers some key visibility for shareholders and removes a significant overhang.
During Q3, revenues were up 11% from the year-ago period to $44 billion, supported by sales growth across its gas, hybrid and electric vehicles. All three core segments of the company reported year-over-year revenue increases, including Ford Blue (revenues of $25.6 billion, up 8% YoY), Ford Pro (revenues of $13.8 billion, up 15% YoY), and Ford E (revenues of $1.8 billion, up 29% YoY).
EPS improved 30% from the prior year to $0.39, up 30% from the previous year, but fell short of Wall Street's expectations.
The company closed the quarter with $51 billion of available liquidity. For the nine months ended Sept. 30, it recorded net cash from operating activities of $12.4 billion, substantially up from $5.7 billion in the same period last year.
Ford has scaled back its electric vehicle (EV) ambitions amid a tough macro environment, but remains committed to the market. Recently, Ford announced a partnership with Xcel Energy (XEL) to develop 30,000 commercial EV charging ports in Xcel Energy service territories across the U.S. by 2030.
Is Ford Stock a Good Value?
Ford stock currently offers a forward dividend yield right around 5%, based on the quarterly dividend of $0.15. Management has said they remain committed to returning 40% to 50% of free cash flow to shareholders.
At current levels, the auto stock looks attractively valued. Ford stock is trading at a forward price/earnings ratio of 6.44, forward price/sales of 0.29, and price/book of 1.09, representing a significant discount to sector medians.
Overall, analysts remain optimistic about the stock, which has an average “Moderate Buy” rating and a mean target price of $14.23. This denotes an expected upside potential of about 18.7% from current levels. Out of 14 analysts covering Ford shares, 6 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, 4 have a “Hold” rating, and 2 have a “Strong Sell” rating.
www.barchart.com
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
The NASDAQ 100 Pre-Market Indicator is up 46.86 to 16,584.69. The total Pre-Market volume is currently 58,117,891 shares traded.
The following are the most active stocks for the pre-market session:
Gaotu Techedu Inc. (GOTU) is +0.51 at $5.28, with 3,501,743 shares traded. GOTU's current last sale is 229.57% of the target price of $2.3.
C4 Therapeutics, Inc. (CCCC) is +0.37 at $5.38, with 2,596,467 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
NIO Inc. (NIO) is +0.3203 at $8.18, with 2,323,928 shares traded. NIO's current last sale is 78.66% of the target price of $10.4.
ProShares UltraPro QQQ (TQQQ) is +0.4202 at $49.08, with 2,048,431 shares traded. This represents a 204.85% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.1299 at $14.28, with 1,999,191 shares traded. This represents a 1.35% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +1.7286 at $252.78, with 1,482,563 shares traded. TSLA's current last sale is 101.11% of the target price of $250.
Rivian Automotive, Inc. (RIVN) is +0.66 at $23.09, with 1,253,412 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
Grab Holdings Limited (GRAB) is unchanged at $3.14, with 1,204,968 shares traded. As reported by Zacks, the current mean recommendation for GRAB is in the "buy range".
Palantir Technologies Inc. (PLTR) is +0.3299 at $18.54, with 924,092 shares traded. PLTR's current last sale is 115.87% of the target price of $16.
UBS AG (UBS) is +0.01 at $29.76, with 887,326 shares traded., following a 52-week high recorded in prior regular session.
Sumitomo Mitsui Financial Group Inc (SMFG) is -0.4247 at $9.56, with 751,352 shares traded. SMFG's current last sale is 94.61% of the target price of $10.1.
ChargePoint Holdings, Inc. (CHPT) is +0.2 at $3.10, with 748,158 shares traded. CHPT's current last sale is 77.5% of the target price of $4.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
For Immediate Release
Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN.
Why Tesla's Cheap (2024 Outlook)
An Up and Down Year for Tesla
Tesla is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. Over the years, Tesla has shifted from developing niche products for affluent buyers to more affordable EVs for the masses. The firm's three-pronged business model approach of direct sales, servicing, and charging sets it apart from other carmakers. Year-to-date, shares are higher by 128%. However, investor concerns are mounting, including:
· Valuation: The EV king's market capitalization is more than the combined value of all legacy automakers.
· Underperformance: Though Tesla has more than doubled this year, it has underperformed the market and "Magnificent 7" recently.
· Recall: This week, news broke that Tesla must recall more than 2 million vehicles.
Below, I will debunk the most common investor concerns and lay out my bull case for the stock:
Don't Judge a Book By its Cover: Tesla Valuation is Cheap
The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). P/B is calculated by dividing the market price per share by the book value per share.
A low P/B ratio may suggest that a stock is undervalued, while a high ratio may indicate overvaluation. Investors use this ratio to assess a company's relative worth in the market compared to its accounting value. Tesla currently has a book value of 14.03. Compare that to another mainstream stock like Apple, whose book value is 49.54, and Tesla suddenly looks cheap.
Furthermore, it is essential to remember that Wall Street is a discounting device. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers.
Rallying on Negative Recall News
Earlier this week, Tesla was forced to recall over two million vehicles over autopilot safety concerns. As I always like to remind investors, the reaction to negative news supersedes the news itself. In the case of TSLA, the stock shook off the bad news and is green for the week.
Technical "Shakeout" and Price Rotation Higher
Savvy investors understand that price movement is the ultimate arbiter of decisions, because after all, price is the only thing that pays. TSLA shares sliced below the 50-day moving average on the recall news and then ripped higher. Such price action indicates a shakeout, where weak hands get stopped out of their positions, clearing the way for the next move higher. Now, TSLA is triggering a bullish swing trade signal by clearing last week's highs.
Cybertruck Hype Real
Many Tesla bears suggest that the hype around Tesla's Cybertruck is unfounded. However, Google Trends data suggests the opposite is true. As Tesla investor and enthusiast Sawyer Merritt points out, "Tesla has surpassed Ford to become the most searched auto brand in the US. Tesla's gone from not making the rankings at all in 2022 to second place in 2023, with 29 of 155 countries listing Tesla as their #1 car brand in Google Trends."
Competition Not a Threat
Thus far, all of the fully-EV focused automakers like Rivian have yet to achieve a quarterly profit. As Elon Musk points out, it's one thing to create a prototype and a whole other thing to manufacture at scale. Meanwhile, Ford, the only other profitable EV maker in the US, announced that it would cut F-150 Lightning production in half next year. (the Lightning is seen by the market as the biggest threat to the Cybertruck)
China Sales Growing Despite Weak Economy
Despite a floundering Chinese economy, recent registration numbers suggest that Tesla is on pace to break its quarterly record for deliveries in China (156.7k).
Exponential EV Growth is on the Horizon
A recent study suggests that by 2030, two-thirds of all global car sales will be EVs.
Bottom Line
Investors using traditional valuation metrics to value Tesla are likely to be wrong. Tesla's price-to-book ratio reveals an undervalued position compared to other mainstream stocks. Meanwhile, the Cybertruck's rising popularity and Tesla's sustained growth in China further underscore its market strength. As the automotive landscape continues to evolve towards electric vehicles, Tesla's innovative approach and global expansion prospects make it a must-own.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There is no denying that the Electric Vehicle industry is cooling. EV makers have reduced their capital allocation toward EV production and set a lower target for the first half of 2024. This could be due to the high interest rate environment and lower consumer spending. However, it is temporary, and we will see the demand pick up. If you are enjoying the transition toward EVs, remember there is much more to the industry than Tesla (NASDAQ:TSLA). While it is a leader and one of the biggest players in the industry, the competition is growing, and several EV makers have a stronghold on the market. With that in mind, let’s look at the three EV stocks to buy that are better than Tesla.
Li Auto (LI)
Source: Carrie Fereday / Shutterstock.com
At the top of my list of electric vehicle stocks is Li Auto (NASDAQ:LI), one of the best EV makers right now. Li Auto is leading the EV race, whether you consider the delivery numbers, financials or product lineup. Trading at $34 today, the stock is up 64% year to date but still trading lower than the 52-week high of $47. It has launched Li Mega, a fully electric EV that will be available in February, and the 10,000 pre-orders already show the enthusiasm surrounding the car.
The company has impressed investors with the delivery numbers—over 40,000 cars in November. It is very close to achieving the final quarter delivery target, and we could see it report even better delivery numbers in 2024. While EV sales are slowing for several companies, Li Auto is picking up pace. At the end of November, its cumulative year-to-date deliveries stood at 325,677, higher than the target of 300,000 for the year.
Its Li-One SUV is one of the best-selling models in China, and aims to launch four new models in 2024. Li Auto’s financials prove that the company is thriving despite rising competition. In the third quarter, it reported a revenue of $4.75 billion, which is a 271% increase year over year, and its net income stood at $385.5 million, up from the net loss it reported in the prior period.
The EV maker has achieved success through its upscale SUVs which are well-priced compared to the premium cars offered by Tesla. It is the product lineup, execution, and pricing that has helped Li Auto grow over the years.
BYD Company (BYDDF)
Source: J. Lekavicius / Shutterstock.com
Next on the list of EV stocks is an obvious pick, BYD (OTCMKTS:BYDDF), a fierce Tesla competitor. The company is very close to beating Tesla on delivery numbers and is also the world’s second-largest battery maker. A huge advantage that BYD has over Tesla is its global presence. It is already exporting its cars to several countries globally and is steadily expanding its reach. BYDDF stock is exchanging hands for $26, much lower than the 52-week high of $36.
Another thing to remember is that Tesla only manufactures battery-powered EVs, whereas BYD makes BEVs and plug-in hybrid cars, which helps it achieve a larger market share. The company is expected to beat Tesla in delivery numbers in the final quarter of the year.
The company sets itself apart with the price point. It offers top-quality cars at a lower price than that of Tesla, where it benefits the most. As the EV market improves and we see higher demand, we will see BYD Co. thrive. It is at the top of the EV stocks that are better than TSLA.
In the first nine months of the year, we saw the company’s profits increase by 142% year over year to hit over $3 billion, and this is when Tesla’s profits dropped due to cost-cutting measures. It currently has a better profit margin than Tesla. The stock is highly undervalued with a huge potential to double, and if you think Tesla is expensive, this is your chance to own a strong EV stock before the year ends.
XPeng (XPEV)
Source: Koshiro K / Shutterstock
XPeng (NYSE:XPEV) disappointed investors in the third quarter results, but it expects the next year to be much better. It anticipates deliveries between 59,500 and 63,500 in the year’s final quarter, and it has already delivered 40,043 cars in October and November. It only needs to deliver 19,457 cars to achieve the lower end of its target.
Additionally, the company has revealed a 7-seater multi-purpose vehicle, which has garnered a lot of interest and attention from buyers. Its G6 EV has become the most popular SUV in China, and the launch of another car could benefit the company’s revenue.
While XPeng might find it difficult to compete with some of the industry leaders, it is still going strong. XPEV stock is trading at $15 today and is up 51% year to date. The company is still in growth mode, with much more to come.
XPEV stock was as high as $64 in Nov 2020 and has lost most of its value. Buying the stock at $15 is a good deal, not one that comes along easily. While the stock may not soar exponentially high anytime soon, there is a strong chance of it bouncing back in 2024. It is one of the top EV stocks to buy now.
Many EV makers are eyeing China’s top spot, but it is too soon to declare a winner. XPeng is still in the race and is riding strong, expecting a better 2024.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 EV Stocks That Are Definitely Better Buys Than Tesla appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These companies are considered the new leaders in the stock market.
There is a pureplay ETF called Roundhill Magnificent Seven ETF MAGS on this theme. The ETF has surged more than 32% this year. There is another ETF called Invesco S&P 500 Top 50 ETF XLG, which invests about 50% of the basket in Magnificent Seven. That fund is up about 34% this year.
Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year (as of Dec 12, 2023).
But there are a few tech ETFs that have beaten even the Magnificent Seven ETF MAGS. These include
Inside the Dominance of Magnificent Seven
The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023.
What About Other Tech Jewels?
Even in the narrow market breadth in 2023, some other tech ETFs that are not solely focused on “Magnificent Seven” shined. With the Fed expected to cut rates by 75 bps in 2024, overall tech space should do well as the area thrives better in a low-rate environment.
Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year.
ETF Picks
Below, we highlight those winning tech ETFs that trumped even Magnificent Seven in 2023.
VanEck Digital Transformation ETF (DAPP) – Up 192.3%
The underlying MVIS Global Digital Assets Equity Index is a rules-based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. Along with DAPP, several other digital asset ETFs, bitcoin mining ETFs and blockchain ETFs have exceled and beaten MAGS this year by a wide margin (read: Block (SQ) Soars on Upbeat Earnings & Outlook: ETFs to Gain).
VanEck Semiconductor ETF (SMH) – Up 63.9%
The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. Along with SMH, other semiconductor ETFs also soared this year (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
SPDR NYSE Technology ETF (XNTK) – Up 63.9%
The underlying NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies. The fund includes semiconductors (25.85%), Systems Software (12.33%), Application Software (9.82%), Interactive Media & Services (7.88%), Internet Services & Infrastructure (6%) and so on.
iShares U.S. Technology ETF (IYW) – Up 60.4%
The underlying Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index (read: Buffett's Favorite 4 Sectors: ETFs in Focus).
WisdomTree Cybersecurity Fund (WCBR) – Up 59.1%
The underlying WisdomTree Team8 Cybersecurity Index is designed to track the performance of companies primarily involved in providing cyber security-oriented products. The fund charges 45 bps in fees (read: Here's Why Cybersecurity ETFs Are At a 52-Week High).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports
WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
Tesla TSLA is recalling more than 2 million vehicles after the U.S. safety regulator cited safety concerns.
Per the US safety regulator, the autopilot features are either too confusing for the drivers or too easy to misuse.
Per the National Highway Traffic Safety Administration (“NHTSA”) filings, the automaker did not agree with the agency’s analysis but has agreed to issue a recall and release an over-the-air update. The agency found that under some circumstances, the Autosteer feature may increase the risk of a collision.
Per the filings, the Autosteer feature provides steering, braking and acceleration support to drivers in certain conditions. However, the drivers are supposed to remain attentive and keep their hands on the steering wheel while using the feature.
The Autopilot system uses several controls to find out if the drivers are attentive or not. Per the report, NHTSA found that the controls may not be sufficient to prevent drivers from exploiting the feature.
Tesla will recall a total of 2,031,220 of its Model S, Model X, Model 3 and Model Y. The automaker has started rolling out a software update, which will be free for Tesla’s customers.
NHTSA began an investigation into 11 incidents that involved Tesla cars with Autosteer and Autopilot in 2021, leading to the recent recall.
Per Part 573 Recall report, the company is planning to launch additional controls and alerts to persuade the driver to adhere to their continuous driving responsibility even when the Autosteer feature is active.
The new update will increase the prominence of visual alerts, simplify engagement and disengagement of Autosteer and require additional check-ins while using Autosteer to ensure that the driver is concentrating.
Zacks Rank & Stocks to Consider
TSLA currently carries a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2024 has increased 2 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased 59 cents and 55 cents, respectively, in the past 60 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
AB Volvo (VLVLY) : Free Stock Analysis Report
RENAULT (RNLSY) : Free Stock Analysis Report
Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
By Caroline Valetkevitch and Noel Randewich
NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.
Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%.
Tesla TSLA.O shares surged 4.9%, with about $40 billion worth changing hands. Its turnover was more than double that of Nvidia NVDA.O, the next most traded company. The heavyweight chipmaker gained 0.5%.
Sectors that have underperformed this year also rose. Of the 11 S&P 500 sector indexes, six closed higher, led by energy .SPNY, up 2.94%, followed by a 2.62% gain in real estate .SPLRCR.
The S&P 500 .SPXclimbed 0.26% to end at 4,719.55 points. It remains down less than 2% from its record high close in January 2022.
The Nasdaq Composite Index .IXICgained 0.19% at 14,761.56 points, while the Dow Jones Industrial Average .DJIrose 0.43% to 37,248.35 points.
Volume on U.S. exchanges was unusually heavy, with 17.1 billion shares traded, compared to an average of 11.1 billion shares over the previous 20 sessions.
The PHLX semiconductor index .SOX surged 2.7% to close at a record high. The Russell Index .RUT of smaller companies also jumped about 2.7%.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view."
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
AdobeADBE.O fell 6.35% after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.9-to-one ratio.
The S&P 500 posted 96 new highs and no new lows; the Nasdaq recorded 259 new highs and 64 new lows.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
Adds background in paragraphs 3-4
BERLIN, Dec 15 (Reuters) - Chinese EV startup Nio's 9866.HK affordable Firefly brand will launch in Europe in 2024, a year earlier than previously disclosed, with a second cheaper brand possibly launching after 2025, president Lihong Qin said in a press conference on Friday.
Both brands, the second of which was dubbed Alps, will produce cars for families, with the Firefly brand offering smaller models, Qin said.
Nio, which currently competes with EVs offered by premium carmakers like BMWBMWG.DE, and Mercedes-Benz MBGn.DEat a price point above 298,000 yuan ($41,971.24) in China, has been facing expanding losses as a price war started by Tesla TSLA.Oweighed on its profitability.
The company has laid off 10% of its workers, is considering spin-offs of units such as its battery manufacturing business, and has struck partnerships to help fund ventures such as battery swapping as it looks to cut costs.
($1 = 7.1001 Chinese yuan renminbi)
(Reporting by Victoria Waldersee, Zhang Yan Editing by Miranda Murray and Linda Pasquini)
((Victoria.Waldersee@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
Corrects headline and paragraph 1 to show Firefly brand launching in Europe in 2025 (not 2024), removes reference in paragraphs 1-2 to Alps brand coming to Europe
BERLIN, Dec 15 (Reuters) - Chinese electric vehicle (EV) maker Nio 9866.HK will launch its cheaper Firefly brand in Europe in 2025, its president said on Friday.
Both the Firefly and Alps brands will produce cars for families, with Firefly offering smaller models, Lihong Qin said in a news conference online.
He did not give details of pricing for the two brands.
A wave of Chinese EV makers are expanding in Europe as demand slows at home and they look to capitalise on a cost advantage versus Western rivals, which have been slower to adopt the new technology. The European Union, however, is investigating Chinese EV imports to see if they breach competition rules.
Nio, which currently competes with EVs offered by premium carmakers like BMW BMWG.DE, and Mercedes-Benz MBGn.DE at a price point above 298,000 yuan ($42,000) in China, has been facing expanding losses as a price war started by Tesla TSLA.O weighed on its profitability.
The company has laid off 10% of its workers, is considering spin-offs of units such as its battery manufacturing business, and has formed partnerships to help fund ventures such as battery swapping as it looks to cut costs.
The partnerships - struck in November with Geely 0175.HK and state-owned Changan Automobile 000625.SZ - will involve building a new battery pack and chassis architecture together with the carmakers to use as a blueprint for future partners, Qin said.
Nio has since signed a third partnership agreement, but it is too soon to disclose details, he added.
($1 = 7.1001 Chinese yuan renminbi)
(Reporting by Victoria Waldersee, Zhang Yan; editing by Linda Pasquini and Mark Potter)
((Victoria.Waldersee@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
The magnificent seven cohort of mega-cap growth stocks have loomed large for investors. They drove a significant portion of the impressive returns notched by broad market indexes.
Big gains by Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla are prompting market participants to wonder whether or not sequels are in store next. History isn’t guaranteed to repeat. And asking for a similar upside to what was notched by the magnificent seven may be too demanding. But these beloved names may continue their bullish ways in 2024.
That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Both ETFs follow the Nasdaq-100 Index (NDX). They’re fine options for investors who want exposure to each of the magnificent seven without having to directly own those names.
Expensive, But Justifiably So
During rallies, such as the one that occurred this year, investors often that the Nasdaq-100 is richly valued. With QQQ and QQQM higher by 51.49% year-to-date, a case can be made that plenty of the stocks residing in the ETFs are expensive. But when it comes to the magnificent seven, that’s not necessarily an indictment. Why? Because these companies have the fundamentals to support elevated earnings multiples.
“The second point is that it is important to remember that large market capitalisation can be justified by large fundamentals. This might sound obvious, but these companies are some of the most profitable and cashflow generative in the world. For that reason, they command higher-than-average valuations in the stock market,” according to Schroders.
Another point to consider is that AI is far from the only reason the magnificent seven surged this year. And that's actually good news for QQQ and QQQM. Experienced investors know as much. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. Still, it’s worth remembering that there’s more to the ETFs and the magnificent seven than just AI.
“While generative AI has and will be a significant tailwind for some of these businesses (as with Nvidia), their strength in 2023 cannot be attributed solely to AI. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations. This has led to significant improvements in profitability and cash flow, particularly at Meta,” concluded Schroders.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
With 2023 drawing to a close, the time has come once again to take a longer look at what next year might bring. As part of VettaFi’s 2024 Market Outlook Symposium, Vettafi Vice Chairman Robert Huebscher sat down with Professor Jeremy Siegel to discuss. Siegel, Russell E. Palmer Professor Emeritus of Finance at the Wharton School, who also serves as WisdomTree’s senior economist, took the time to share his thoughts on the 2024 market outlook.
The pair’s conversation followed recent dovish signaling from the Fed. For Siegel, 2023 saw a “tale of two markets” take place, with the so-called Magnificent Seven on one side and styles like value on the other. In 2024, he believes, markets will see a reversal, with value and small stocks shedding their lethargy as part of his market outlook.
“I’m not saying these large stocks won’t do well, they've got incredible franchises and growth prospects, but I’m bullish and I’m going to say they're 10% to 15% from today’s level toward the end of 2024,” Siegel said.
Inflation, the Fed, and the Market Outlook
The pair turned to Siegel’s ongoing coverage of the Fed’s battle with inflation, with Huebscher asking Siegel to share his 2024 inflation market outlook. For Siegel, the money-supply drop was concerning, welcoming the Fed’s recent dovish signaling given what he sees as a need for cuts next year.
“Why has inflation gone down? Because of high interest rates and lower money-supply growth. I think the supply side normalized earlier so I’m going to give it to the tightness of the money supply,” he said. “I would’ve stopped decreasing it earlier, but I’ve been surprised by the resistance of the economy to the money supply and the higher real interest rates.”
“The indications for a soft landing are certainly increasing and I would say are odds on now for 2024,” he added.
Huebscher underlined Siegel’s accurate prediction of about 3% growth for 2023, turning toward the possibility of a recession next year and what growth may look like then. They also talked about the future of the 10-year yield, for example, as part of an overall market outlook.
Siegel shared that he believes the 10-year won’t drop to 2%, 2.5%, with people more suspicious about the hedging ability of bonds. He believes, then, that the 10-year will land between 3.5% and 4%.
“Inflation is coming down, commodities are coming down. That puts downward pressure on the long rate and induces the Fed to lower that short term interest rate," Siegel noted.
TIPS and Housing Ahead
Huebscher responded, asking if real rates do come down, what would that mean for stocks. To Professor Siegel, TIPS may hit about 1% or 1.5%, with inflation fears priced into bond yields and even TIPS yields. That comes with a new 3.5% equilibrium for inflation.
“I’m looking for TIPS much closer to that 1%, 1.5%. I don’t think we’re going back to that zero we had before the pandemic,” he explained.
Turning to housing, the duo assessed the current CAPE Shiller index and housing prices. Siegel, who has spoken to Professor Shiller, shared that the high end of the market is still seeing cash transactions doing very well. At the lower end, there have been fewer transactions, not holding up as well as the upper end.
“The CAPE-Shiller is overstating what has happened to housing. We’ve had a huge surge, a 35% increase in housing prices from the pandemic over the next two to two and half years,” he said. “The recent increase has been a distortion because of the factors you mentioned, that the lower-priced houses that need financing are not getting into that index.”
“However, if prices keep going down and there is a shortage of housing, housing starts are low … there won’t be a boom like 2020. But I would imagine we could have a rise in housing prices of 4% or 5% in 2024.”
Growth Stocks in the 2024 Market Outlook
The pair also discussed what sectors may be over- or undervalued. 2023 was a year for growth stocks, unusually to Siegel, as this is one of the very few times in which the new bull market was led by the leadership from the previous.
“Now we obviously, minus the speculation … the speculation that the pandemic darlings like Peloton (PTON), some of the craziness in the crypto market, some of the craziness in the NFT market, that’s gone,” he said. “The quality growth stocks reasserted themselves, the Googles (GOOGL), the Nvidias (NVDA), the Teslas (TSLA), the Amazons (AMZN) ... all those just reasserted themselves.”
Siegel identified a pretty big gap between valuation and growth, with his predictions last year that rates and value may have been 12 months early. He doesn’t believe the U.S. economy will see a recession, with value and small stocks perhaps set to benefit from that amid the Fed’s recent dovish signaling.
“When you're at 12X, 15X earnings, you just need a little growth and you’ll see a return,” he said.
Geopolitical Risks, Politics, and the Market Outlook
Turning to risks, the pair touched on what Siegel might see as big risks next year to the market. For Siegel, the standout issue is protecting the internet from foreign hacking.
“Can you imagine what the chaos would be if people woke up and tried to access their bank account or Vanguard funds and couldn’t get it,” Siegel said. “The security of our data is paramount.”
At the same time, however, Siegel doesn’t see much risk of new conflicts erupting or risk to oil supply. While war in Southwestern Asia could expand, he noted, an oil embargo is unlikely, and U.S. energy production should make markets more resistant to conflict in that region.
The pair also talked about the impact of U.S. elections in 2024, with Siegel assessing that the key factor at stake would be that the Trump tax cuts from his previous administration will expire in 2025.
“No matter who wins the presidency (and Congress), there’s going to be a real negotiation that’s going to take place,” Siegel said. “So I do not think that the presidency is going to affect the market substantially.”
He also recommended overall asset allocation, emphasizing a 75/25 portfolio with bonds mixed between Treasuries and hybrid corporates Siegel also underlined that junk bonds have been a solid long-term hold despite volatility, returning almost like stocks over long time frames.
For more news, information, and analysis, visit the Modern Alpha Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
The Ark Innovation ETF (NYSEMKT: ARKK) managed by Cathie Wood is one of the most closely followed actively managed funds in the world.
Wood rose to prominence in 2020 when all six of Ark Invest's active exchange-traded funds (ETFs) saw their prices soar more than 100%. The flagship Ark Innovation ETF climbed 148.7% that year. Wood and her team seek out companies developing disruptive technologies in the areas of genomics, automation, artificial intelligence (AI), and finance, among others, for the Ark Innovation fund.
But just four stocks out of 33 total holdings make up the bulk of the fund's investments. These are Ark Invest's biggest bets. And if Wood is right, these four could turn out to become much bigger companies than they already are today. Let's find out a bit more about these four stocks.
1. Coinbase: 10.6% of holdings
Coinbase Global (NASDAQ: COIN) has grown to become Ark Invest's biggest holding across several of its ETFs. The company is the leading U.S.-based cryptocurrency exchange, and it's a big beneficiary of the increased adoption of Bitcoin.
As a result, its stock price tends to move in coordination with the price of Bitcoin. Bitcoin's price has climbed over 163% so far in 2023, including a recent rally this month, pushing the price higher by 16%. Investors responded, pushing Coinbase stock 289% higher so far this year, including a 63% increase since reporting better-than-expected third-quarter earnings.
Coinbase has improved its net losses in 2023, producing positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). That's due in large part to reducing costs. Management slashed its operating expenses by 34% year over year in the third quarter. Meanwhile, revenue grew just 8%, including a 21% decline in transaction revenue. It's unlikely Coinbase can sustain its improvements in profits going forward.
Ark Invest has been selling off some of its shares of Coinbase recently, not necessarily because it's soured on the long-term prospects of the company, but because the stock's recent rally has pushed the weighting so high.
2. Roku: 8.4% of holdings
Roku (NASDAQ: ROKU) is a favorite of Cathie Wood and her teams in the connected-TV and streaming space. Ark analysts published a financial model last year, indicating their belief that Roku stock could reasonably reach $605 per share by 2026. With the stock currently trading at just over $100 per share, Ark still sees a lot of upside.
There's a lot to like about Roku. It's seeing strong momentum in active user growth and streaming hours on its platform. And while revenue growth has been slow amid a weak advertising spend environment, the growing and increasingly engaged user base is a stronger indication of long-term potential for the company.
After falling below EBITDA profitability in 2022, the company returned to the black last quarter on the back of cost-cutting and restructuring. Management is committed to full-year EBITDA profitability for 2024.
With the recent strength in Roku's stock price, Ark has been selling shares. Still, it remains one of its biggest holdings across multiple funds, and with expectations for the stock price to climb significantly higher in the long run, it'd be a big surprise if Ark changed channels midstream.
3. UiPath: 7.8% of holdings
UiPath (NYSE: PATH) is not just one of the biggest holdings in the Ark Innovation ETF, it's one of the biggest holdings in all six of Ark's active ETFs. The team seems to believe UiPath's robotic process automation (RPA) has the potential to span just about every industry, making it the biggest AI stock in Ark's holdings.
UiPath benefits from more and more businesses looking to cut overhead. With fewer employees, businesses need to automate more tasks. UiPath steps in, uses its AI to find tasks that can be automated, and then implements a solution for the business. As a result, it saw its annual recurring revenue improve 24% year over year last quarter.
That's a notable slowdown from the 30% growth in recurring revenue UiPath produced in 2022, and management expects a further slowdown in the fourth quarter. That said, the growing scale of the business has led to substantial improvements in operating margin, and the company should be able to produce stronger margins by implementing more AI solutions for each customer.
It does face much bigger competitors in the space, including Microsoft, which has its finger on the pulse of AI through OpenAI and its Azure cloud computing business. But if it can fend off its bigger competitors, it's in a strong position to keep growing at a rapid pace.
Ark has been trimming its position in UiPath as the stock price climbs. But considering it's still held across every single one of its funds, the managers' commitment to the stock can't be questioned.
4. Tesla: 7.5% of holdings
Tesla (NASDAQ: TSLA) has long been a favorite of Cathie Wood and the team at Ark Invest. It was previously the fund's No. 1 holding, but has now fallen to fourth despite strong price performance in 2023. Wood sold off a significant number of shares this summer following the stock's strong run, and shares have since pulled back slightly in price.
Still, Wood's belief that Tesla is at the forefront of autonomous vehicle technology is unwavering. She sees the biggest challenge for solving autonomous driving as collecting enough data, and basically, every Tesla vehicle in operation is feeding data into the company's algorithms.
Ark's financial model published earlier this year sees Tesla shares climbing to $2,000 per share by 2027 for its base case, with an upside of $2,500 per share. The model is heavily reliant on Tesla launching autonomous vehicles in the very near future and a robotaxi service using those vehicles.
Musk has continuously fallen short of his promises of delivering fully autonomous vehicles. Many believe Tesla's approach to eschew lidar and mapping systems like other autonomous vehicle companies will ultimately result in it falling short of achieving full autonomy capable of providing a robotaxi service.
Meanwhile, Tesla has been susceptible to pricing pressure and the macroeconomic environment has curbed new auto sales. That's seen in Tesla's margins, which have come under pressure this year.
Nonetheless, Wood believes Tesla has the foundational technology that will transform transportation. In fact, she recently told CNBC she thinks it will remain a top-five holding for the Ark Innovation fund for a long time.
Should you invest $1,000 in Ark ETF Trust-Ark Innovation ETF right now?
Before you buy stock in Ark ETF Trust-Ark Innovation ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ark ETF Trust-Ark Innovation ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Adam Levy has positions in Bitcoin, Microsoft, and Roku. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Microsoft, Roku, Tesla, and UiPath. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
By Caroline Valetkevitch and Noel Randewich
NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.
Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high.
Tesla TSLA.Oshares surged, with over $37 billion worth changing hands.
Sectors that have underperformed this year also rose, including energy and real estate.
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Tesla Inc (Symbol: TSLA), where a total volume of 3.2 million contracts has been traded thus far today, a contract volume which is representative of approximately 318.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 263.2% of TSLA's average daily trading volume over the past month, of 120.9 million shares. Particularly high volume was seen for the $250 strike call option expiring December 15, 2023, with 273,481 contracts trading so far today, representing approximately 27.3 million underlying shares of TSLA. Below is a chart showing TSLA's trailing twelve month trading history, with the $250 strike highlighted in orange:
Alteryx Inc (Symbol: AYX) saw options trading volume of 34,177 contracts, representing approximately 3.4 million underlying shares or approximately 262.8% of AYX's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $47.50 strike call option expiring December 15, 2023, with 6,549 contracts trading so far today, representing approximately 654,900 underlying shares of AYX. Below is a chart showing AYX's trailing twelve month trading history, with the $47.50 strike highlighted in orange:
And Super Micro Computer Inc (Symbol: SMCI) saw options trading volume of 72,742 contracts, representing approximately 7.3 million underlying shares or approximately 254.3% of SMCI's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $300 strike call option expiring December 15, 2023, with 6,852 contracts trading so far today, representing approximately 685,200 underlying shares of SMCI. Below is a chart showing SMCI's trailing twelve month trading history, with the $300 strike highlighted in orange:
For the various different available expirations for TSLA options, AYX options, or SMCI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Funds Holding NAAC
FTRI market cap history
Top Ten Hedge Funds Holding COUR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-14
|
TSLA
|
Updates with details in paragraphs 4-9
AMSTERDAM, Dec 15 (Reuters) - The Dutch vehicle authority RDW said on Friday it does not currently plan a Tesla TSLA.O recall in Europe following a major U.S. recall this week of the carmakers' models due to concerns about their Autopilot driver assistance systems.
The Netherlands' RDW oversees safety approval for Teslas in Europe.
The agency cited differences between Autopilot functions that are available on the European and U.S. markets and said it is in touch with Tesla.
The U.S. recall, Tesla's largest to date, was prompted by National Highway Traffic Safety Administration findings that drivers do not always pay enough attention to the road when the system's automatic steering functions are turned on, possibly increasing the chance of crashes.
Tesla's steering functions in Europe are tested against the U.N., not U.S. rules, they said.
Other "differences are, for example, in how the 'drivers monitoring' is done and the warning given to the driver when the system is abused," the spokesperson said.
(Reporting by Toby Sterling; Editing by David Evans and Susan Fenton)
((toby.sterling@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
An Up and Down Year for Tesla
Tesla (TSLA) is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. Over the years, Tesla has shifted from developing niche products for affluent buyers to more affordable EVs for the masses. The firm’s three-pronged business model approach of direct sales, servicing, and charging sets it apart from other carmakers. Year-to-date, shares are higher by 128%. However, investor concerns are mounting, including:
· Valuation: The EV king’s market capitalization is more than the combined value of legacy automakers, including Toyota (TM), Volkswagen (VWAGY), Daimler, General Motors (GM), and Ford (F).
· Underperformance: Though Tesla has more than doubled this year, it has underperformed the market and “Magnificent 7” recently.
· Recall: This week, news broke that Tesla must recall more than 2 million vehicles.
Below, I will debunk the most common investor concerns and lay out my bull case for the stock:
Don’t Judge a Book By its Cover: Tesla Valuation is Cheap
The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). P/B is calculated by dividing the market price per share by the book value per share. A low P/B ratio may suggest that a stock is undervalued, while a high ratio may indicate overvaluation. Investors use this ratio to assess a company's relative worth in the market compared to its accounting value. Tesla currently has a book value of 14.03. Compare that to another mainstream stock like Apple (AAPL), whose book value is 49.54, and Tesla suddenly looks cheap.
Image Source: Zacks Investment Research
Furthermore, it is essential to remember that Wall Street is a discounting device. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers.
Rallying on Negative Recall News
Earlier this week, Tesla was forced to recall over two million vehicles over autopilot safety concerns. As I always like to remind investors, the reaction to negative news supersedes the news itself. In the case of TSLA, the stock shook off the bad news and is green for the week.
Technical “Shakeout” and Price Rotation Higher
Savvy investors understand that price movement is the ultimate arbiter of decisions, because after all, price is the only thing that pays. TSLA shares sliced below the 50-day moving average on the recall news and then ripped higher. Such price action indicates a shakeout, where weak hands get stopped out of their positions, clearing the way for the next move higher. Now, TSLA is triggering a bullish swing trade signal by clearing last week’s highs.
Image Source: TradingView
Cybertruck Hype is Real
Many Tesla bears suggest that the hype around Tesla’s Cybertruck is unfounded. However, Google Trends data suggests the opposite is true. As Tesla investor and enthusiast Sawyer Merritt points out, “Tesla has surpassed Ford to become the most searched auto brand in the US. Tesla’s gone from not making the rankings at all in 2022 to second place in 2023, with 29 of 155 countries listing Tesla as their #1 car brand in Google Trends.”
Image Source: Sawyer Merritt/Google Trends
Competition is Not a Threat
Thus far, all of the fully-EV focused automakers like Rivian (RIVN) have yet to achieve a quarterly profit. As Elon Musk points out, it’s one thing to create a prototype and a whole other thing to manufacture at scale. Meanwhile, Ford, the only other profitable EV maker in the US, announced that it would cut F-150 Lightning production in half next year. (the Lightning is seen by the market as the biggest threat to the Cybertruck)
China Sales Growing Despite Weak Economy
Despite a floundering Chinese economy, recent registration numbers suggest that Tesla is on pace to break its quarterly record for deliveries in China (156.7k).
Image Source: @piloly
Exponential EV Growth is on the Horizon
A recent study suggeststhat by 2030, two-thirds of all global car sales will be EVs.
Bottom Line
Investors using traditional valuation metrics to value Tesla are likely to be wrong. Tesla’s price-to-book ratio reveals an undervalued position compared to other mainstream stocks. Meanwhile, the Cybertruck’s rising popularity and Tesla’s sustained growth in China further underscore its market strength. As the automotive landscape continues to evolve towards electric vehicles, Tesla’s innovative approach and global expansion prospects make it a must-own.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
Fool.com contributor Parkev Tatevosian discusses his Tesla Cybertruck predictions for 2024. Tesla (NASDAQ: TSLA) stock investors might be surprised at what he has to say.
*Stock prices used were the afternoon prices of Dec. 11, 2023. The video was published on Dec. 13, 2023.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
(New throughout, adds judge's tentative ruling)
By Chris Prentice and Jody Godoy
Dec 14 (Reuters) -
A federal judge in San Francisco on Thursday tentatively ruled that billionaire Elon Musk must testify again for the U.S. Securities and Exchange Commission's investigation of his $44 billion takeover of Twitter.
During a hearing, U.S. Magistrate Judge Laurel Beeler quickly rejected arguments by Musk's attorney that SEC officials do not have the authority to issue subpoenas, saying the agency has broad investigative powers and that no judge would "second guess" an SEC probe.
She said Musk and the SEC must agree to a date for the world's richest person to provide another day of testimony, or she would set a date.
"You’ve got one more four-hour deposition, one more day of depositions to survive and it’s over. It seems unlikely there’s going to be any more hassle," she said.
The SEC sued Musk in October to compel the Tesla and SpaceX CEO to testify as part of an investigation into his 2022 purchase of social media giant Twitter, which he subsequently renamed X. Musk refused to attend a September interview for the probe, the SEC said.
The agency is examining whether Musk followed the law when filing the required paperwork with the agency about his purchases in Twitter stock, and whether his statements in relation to the deal were misleading.
The court hearing is the latest spat in a years-long feud between Musk and the top U.S. markets regulator, dating back to 2018 when he tweeted that he had "funding secured" to take the electric carmaker private.
The SEC has been probing Musk's Twitter takeover since April 2022, when he first disclosed he had purchased stock in the company. Musk gave the SEC documents for its probe and testified via videoconference for two half-day sessions that July, the SEC said in its filing. SEC attorneys said they have more questions for Musk after receiving new documents, and had sought additional testimony in September, but Musk would not comply.
In response to the SEC's October lawsuit, Musk's lawyers urged Beeler to deny the SEC's request, calling the probe misguided. "The SEC's pursuit of Mr. Musk has crossed the line into harassment," they wrote in a filing last month. They argued that individual SEC attorneys do not have the legal authority to issue subpoenas for testimony.
The SEC rejected those claims, saying agency officials have legal authority to seek additional testimony as probes evolve.
On Thursday, Beeler within minutes sided with the SEC, emphatically dismissing Musk's attorney's arguments, although she conceded the demands of long-running investigations can be "frustrating."
TWITTER TAKEOVER
Musk and the SEC have been sparring since his "funding secured" tweet in 2018. The SEC settled that case but the commission sued Musk again in 2019 for allegedly breaching a that settlement. The tweets also prompted a shareholder lawsuit. A jury in February found Musk was not liable for misleading investors.
Over the years, the agency has opened multiple other probes into Musk and Tesla.
On April 4, 2022, Musk disclosed he had acquired a 9.2% stake in Twitter. It was 11 days after the SEC's deadline for such disclosures. Musk initially indicated via that regulatory filing that he planned to be a passive stakeholder, meaning he did not plan to take over the company.
Later that month, however, he announced plans to buy Twitter for $44 billion. He subsequently tried to get out of the deal, alleging Twitter was not disclosing the full extent of bot activity on its platform.
After being sued to complete the deal, Musk closed his acquisition of Twitter in late October 2022. (Reporting by Chris Prentice; Additional reporting by Jody Godoy in New York; Editing by Michelle Price and David Gregorio) ((christine.prentice@thomsonreuters.com; +1 (202) 843-6464;)) Keywords: USA SEC/MUSK (UPDATE 1, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
Shares of ChargePoint Holdings (NYSE: CHPT), the world's largest independent charging network for electric vehicles (EVs), were rallying today in response to the Federal Reserve's interest rate announcement yesterday, trending with other beaten-down stocks that stand to benefit from lower interest rates and the jolt they are expected to give to the economy.
As of 11:48 a.m. ET Thursday, ChargePoint stock was up 18.5%.
Image source: Getty Images.
Saved by the Fed
There was no major news on ChargePoint today, but yesterday's rate decision from the Fed was enough to push the stock up by double digits. The central bank did not adjust interest rates and indicated in its forecast that it expected three cuts to the fed funds rate, lowering the benchmark rate from the current 5.25%-to-5.5% range to 4.5% to 4.75% by the end of next year.
ChargePoint has struggled badly this year with slowing demand for EVs, macro challenges, and a threat from Tesla as a number of EV makers plan to switch to Tesla's North American Charging Standard (NACS), forcing ChargePoint to adapt.
The company is struggling on multiple fronts as revenue fell 12% to $110 million in the third quarter and a loss of $158.2 million under generally accepted accounting principles (GAAP).
ChargePoint also has nearly $300 million in debt on its balance sheet, though that is at a fixed rate, making it less sensitive to fluctuations in benchmark interest rates. However, if the company continues to lose money, it might need to tap the debt markets again.
Demand for EVs and the overall health of the economy are sensitive to interest rates as most car buyers use financing to purchase vehicles.
What's next for ChargePoint?
The Fed's forecast for lower interest rates shouldn't do much to affect ChargePoint's business directly, but it is breathing new life into the stock. The company is under the guidance of a new management team as its CEO and chief financial officer recently departed and the board of directors named Rick Wilmer as its new CEO.
There's no shortage of challenges facing Wilmer as he aims to deliver positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the fourth quarter of next year, but stronger EV demand would help. Still, investors should expect ChargePoint's volatility to continue as the business needs a lot of work to reach viability.
Should you invest $1,000 in ChargePoint right now?
Before you buy stock in ChargePoint, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and ChargePoint wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
The NASDAQ 100 Pre-Market Indicator is up 64.79 to 16,627.16. The total Pre-Market volume is currently 59,223,924 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $14.18, with 3,427,135 shares traded., following a 52-week high recorded in prior regular session.
C4 Therapeutics, Inc. (CCCC) is -0.04 at $5.47, with 3,252,368 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
ProShares UltraPro QQQ (TQQQ) is +0.64 at $49.38, with 3,152,568 shares traded., following a 52-week high recorded in prior regular session.
iShares 20+ Year Treasury Bond ETF (TLT) is +1.0205 at $97.55, with 2,497,427 shares traded.TLT has a $3.72640800cash dividend with an Ex/Eff Date of12/14/2023
XBP Europe Holdings, Inc. (XBP) is +5.48 at $11.15, with 1,636,388 shares traded., following a 52-week high recorded in prior regular session.
Tesla, Inc. (TSLA) is +1.688 at $240.98, with 1,531,136 shares traded. TSLA's current last sale is 96.39% of the target price of $250.
Pacific Gas & Electric Co. (PCG) is +0.2 at $18.35, with 1,411,549 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
Gaotu Techedu Inc. (GOTU) is +0.28 at $3.97, with 1,179,401 shares traded. GOTU's current last sale is 172.61% of the target price of $2.3.
Palantir Technologies Inc. (PLTR) is +0.3 at $18.17, with 1,053,318 shares traded. PLTR's current last sale is 113.56% of the target price of $16.
NIO Inc. (NIO) is -0.0301 at $7.40, with 934,124 shares traded. NIO's current last sale is 71.15% of the target price of $10.4.
Pfizer, Inc. (PFE) is +0.08 at $26.74, with 933,489 shares traded., following a 52-week high recorded in prior regular session.
Alibaba Group Holding Limited (BABA) is -0.22 at $71.24, with 467,551 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Ark Invest’s Cathie Wood is fresh off a must-needed year of relief, with her flagship Ark Innovation ETF (NYSEARCA:ARKK) soaring more than 70% year-to-date. Indeed, Cathie Wood stocks still have a long way to go if they’re to see new highs again.
Though new highs in 2024 seem unrealistic, I do believe that the trio of rate cuts the Federal Reserve has planned for next year could be the tailwind that disruptive innovation stocks need to take their rally to the next level. Either way, it’s hard not to want to bet on Cathie Wood stocks as it looks to sail into smoother, lower-rate waters from here.
Let’s have a look at three stocks in the ARKK that I find most intriguing for the new year:
Roku (ROKU)
Source: Michael Vi / Shutterstock
Roku (NASDAQ:ROKU) stock has been on a great run so far this year, now up 153% year-to-date. Led higher by improvements in the ad market, Roku stands out as one of the most compelling recovery plays in the realm of Cathie Wood stocks.
Though I’d much rather wait for shares to pullback after more than doubling in a year, I do find DA Davidson’s recent comments on the company encouraging. According to the investment firm, Roku may be an “attractive takeout target,” perhaps through the eyes of a mega-cap tech firm seeking to expand exposure in the streaming markets.
My take is that Roku would be even better in the hands of a media-focused streamer that’s lacking in exposure on the hardware side. Undoubtedly, many of the mega-cap tech companies with exposure to streaming also have their own streaming sticks or something similar.
In any case, Roku remains a relatively small firm, with its mere $14.49 billion market cap at the time of writing, making it a bite-sized deal for any firm eager to make bigger strides in streaming. For now, I wouldn’t speculate on a takeover deal, as it’s hard to gauge where Roku goes from here if no acquirer steps forward.
Tesla (TSLA)
Source: Arina P Habich / Shutterstock.com
Electric vehicle (EV) firm Tesla (NASDAQ:TSLA) has been a standout performer for Cathie Wood’s ARKK fund over the past several years. Of late, though, Tesla stock has driven into a bit of a rough patch, sinking from its more than $400 peak in late 2021 to around $113 at its depths earlier this year. At writing, the stock’s going for just shy of $250 per share, up around 130% year-to-date.
Recently, Tesla recalled around 2 million cars due to “insufficient” Autopilot safeguards. For now, the headline doesn’t appear to be having a drastic impact on the stock. I view Autopilot as a nice-to-have feature for now. Give it a few years, though, and Autopilot capabilities may become a must as more self-driving technologies move into the mainstream. In any case, I wouldn’t make too much of the recall.
At around 77.2 times trailing price-to-earnings, I view Tesla stock as intriguing if you believe in Elon Musk and his firm’s AI prowess. As a tech company, a case could be made that the stock’s reasonably valued. However, as an auto company, it looks absurdly expensive. So, it really depends on your point of view! Either way, Tesla looks intriguing here as we look forward to what AI has to offer in 2024.
UiPath (PATH)
Source: dennizn / Shutterstock.com
Speaking of AI, I find UiPath (NYSE:PATH) to be one of the most interesting AI stocks in ARKK right now. The company is in the business of automating repetitive tasks in the workforce. The stock’s been on a steady descent since it went live on the public markets back in 2021. Today, shares are off around 68% from their peak, but up more than 104% year-to-date.
Should three rate cuts be in the cards in 2024, hyper-growth companies with skin in the automation game could be in for another good year. UiPath is at 52-week highs, but there’s still a harsh macro climate to get through. Yes, low rates are a good thing, but it may prove tougher to compete in an arena where numerous enterprise software companies are in a rush to improve their AI capabilities.
My guess is that UiPath remains competitive, even as other industry players look to chase after the AI puck in the new year. That said, I wouldn’t bet on the stock as it appears the easy money’s already been made.
On the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post ROKU, TSLA, PATH: 3 Cathie Wood Stocks Picking Up Traction appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
Adds quote from letter, detail and background in paras 2-7
STOCKHOLM, Dec 14 (Reuters) - A group of Nordic institutional investors said in a letter to Tesla TSLA.O on Thursday they were deeply concerned by the conflict between the company and labour unions in Sweden, and asked it to reconsider its approach to collective bargaining.
Tesla is facing a backlash from unions and some pension funds in the region over its refusal to accept a demand from Swedish mechanics for collective bargaining rights covering wages and other conditions.
A group of Nordic investors, which includes Norway's largest pension fund KLP, Sweden's Folksam and Denmark's PFA and PensionDanmark said the Swedish labour market model enabled the Nordics to thrive. The model means employers and unions agree on working conditions and salaries with very little involvement of the government.
"We as Nordic investors acknowledge the decade old tradition of collective bargaining, and therefore urge Tesla to reconsider your current approach to unions," the investors, which have assets of approximately one trillion dollars under management, said in the letter.
Tesla has managed to avoid collective bargaining agreements with its roughly 127,000 workers, and CEO Elon Musk has been vocal about his opposition to unions.
Tesla, which has revolutionised the electric car market, says its Swedish employees have as good or better terms than those the union is demanding.
The company did not immediately respond to a request for comment.
(Reporting by Terje Solsvik, Jacob Gronholt-Pedersen and Johan Ahlander; editing by Louise Rasmussen and Sharon Singleton)
((terje.solsvik@thomsonreuters.com; +47 918 666 70;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
When it comes to electric vehicles (EVs), most investors probably think of car companies such as Tesla and Rivian, and for good reason. EVs are becoming more popular across the globe.
But what if EVs weren't limited to the road? There are actually a number of companies investing heavily in electric air taxis, such as the Cathie Wood favorite Archer Aviation (NYSE: ACHR). Wood is the CEO of Ark Invest, an investment management firm known for taking big bets on emerging technology.
While Archer Aviation's electric air taxis may sound like something from the future, the technology could be closer than you realize. With the stock trading below $10 per share, now could be a lucrative opportunity to buy into this little-known EV disruptor.
Is the air taxi market just hype?
It's understandable to be incredulous about the applications of air taxis. After all, what's wrong with traditional modes of transportation like cars, busses, and trains?
Well, for starters, one of the biggest use cases air taxi companies are looking to tackle is road traffic. In fact, a company called Blade Air Mobility is already solving this challenge thanks to its on-demand helicopters and jets. The challenge here is accessibility. Blade Air Mobility offers more of a luxury service and isn't as affordable as ride-hailing services such as Uber and Lyft.
Image source: Getty Images.
The $1 trillion air mobility industry
The air mobility market is comprised of many different types of aircraft, including drones, supersonic jets, and electric vertical take-off and landing (eVTOL) vehicles. Archer Aviation is focusing on eVTOL aircraft for both military operations and alternative urban mobility services.
According to a recent report from management consulting firm McKinsey, the total backlog for air mobility vehicles eclipsed $100 billion as of June. It's important to note that this figure excludes commercial airplanes. Moreover, Wall Street estimates that the urban air mobility market could be worth $1 trillion by 2040.
Invest in the future of mobility: Urban Air Mobility is projected to be a $1+ trillion market by 2040*. Sign up for updates to learn more about Archer.
*FOOTNOTE: According to Morgan Stanley
-- Archer (@ArcherAviation) March 25, 2023
Given these demand undercurrents, investors might not be surprised to learn that the market is garnering the support of institutional investors. For example, venture capital investors have poured hundreds of millions of dollars into a unicorn start-up and Archer competitor called Volocopter.
When it comes to Archer, the company has no shortage of impressive investors. In addition to Wood, Archer's backers include Stellantis, United Airlines, and Boeing. United Airlines, for its part, has a vested interest in Archer's success with a purchase order in place of up to $1.5 billion.
Additionally, the relationship with Boeing makes a lot of sense given its heavy investments in urban air mobility company Wisk. Working closely with Wisk and earning the financial support of Boeing should be a major catalyst for Archer's vision of commercial electric taxis.
Is Archer Aviation stock a good buy?
ACHR Cash and Equivalents (Quarterly) data by YCharts
The chart above might appear a little misleading. Investors can see that for the last couple of years Archer has been operating at a net loss on a consistent basis, and yet its cash balance has remained fairly robust save for a noticeable dip last summer.
The company's mounting losses can be attributed to two primary factors. The first is that Archer is pre-revenue. The second is that building aircraft is expensive. The combination of heavy capital requirements and a sales operation that is not yet operating at scale has required the company to continue raising funds.
While this may not spark much confidence, consider that multiple banks on Wall Street are bullish on Archer stock, with one believing the stock is currently undervalued. At the time of this writing, Archer stock trades for roughly $6.70 per share. This reflects a healthy uptick from its all-time lows earlier this year.
ACHR data by YCharts
At the end of the day, there are several reasons to believe that Archer Aviation could be a lucrative stock to buy. Given the positive outlook of the size of urban air mobility's total addressable market coupled with the surging demand for non-commercial aircraft, it seems obvious that Archer could be onto something big.
Moreover, the steadfast support of some of the most recognized mobility brands in the world could suggest that Archer Aviation is a leader in commercial eVTOL transportation. For investors who are looking for additional exposure to the EV space, Archer Aviation could represent a unique opportunity. With the company's commercialization efforts beginning as early as 2025, now could be a good chance to scoop up shares before they take flight.
Should you invest $1,000 in Archer Aviation right now?
Before you buy stock in Archer Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Adam Spatacco has positions in Tesla. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
With a trailing-10-year return of 2,420%, Tesla (NASDAQ: TSLA) has been an outstanding stock for investors to own. A relatively small $1,000 investment in December 2013 would be worth a whopping $25,000 today.
Right now, the stock sits 42% below its all-time high in November 2021. Opportunity-seeking investors might want to pull the trigger and buy the dip. But if you're thinking of buying Tesla shares today, first take the time to understand the following important factors about this business.
Industry landscape
Tesla's huge lead in the electric vehicle (EV) industry has propelled it to an enviable position. Its cars represent half of all new EVs sold in the United States.
Growth over the past decade has been spectacular. Revenue of $23 billion in the 2023 third quarter (ended Sept. 30) was 5,236% higher than in the same period of 2013. And this year, Tesla is on pace to produce 1.8 million vehicles. For comparison's sake, the business delivered 22,000 cars in 2013.
However, outsize success doesn't go unnoticed, and capitalism invites competition. There are now numerous car manufacturers in the EV market, which will surely make it more difficult for Tesla to post the same level of rapid growth over the next 10 years.
This year, the main story in the industry has been price cuts. Even the almighty Tesla hasn't been able to escape this pressure. In the process, the company's margins have decreased.
Tesla's premium brand status and robust manufacturing capabilities have helped the company generate positive GAAP net income since 2020, an achievement that smaller rivals only dream of. This advantage gives Tesla more wiggle room to engage in ongoing price wars while maintaining profitability.
Macro headwinds
Tesla trades at a price-to-earnings (P/E) ratio of 76.7. That's extremely expensive compared with legacy auto stocks such as Ford and General Motors. It even represents a sizable premium to luxury-car brand Ferrari.
Investors have labeled Tesla as a tech company based on its disruptive and innovative potential. But the macro backdrop has revealed that there are some things this business just isn't immune to.
Just look at rising interest rates. Since the Great Recession, interest rates had until recently been at historically low levels, spurring demand from borrowers for things like auto loans. Now that interest rates are elevated, Tesla was able to post only single-digit revenue growth in the latest quarter.
"If the macroeconomic conditions are stormy, even the best ship is still going to have tough times," CEO Elon Musk said on the Q3 2023 earnings call.
Musk's ambitions
A decade from now, Tesla could look like a totally different company from what we're accustomed to today. Musk is fully focused on developing autonomous driving capabilities so that one day, Tesla can launch a robotaxi service. The hope is that people won't want to own cars anymore, since using this service would be incredibly cost-effective for a consumer looking to get from one place to another.
Ark Invest, headed by Cathie Wood, is typically extremely bullish with its forecasts. The company, which owns a significant chunk of Tesla stock, believes that by 2029, the global robotaxi market will generate annual sales of $9 trillion, from basically nothing today. Tesla is positioning itself to be at the forefront of this opportunity.
Find out why Tesla is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of November 29, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
Technology has turned out to be the most profitable sector in 2023, driven by the artificial intelligence (AI) boom, easing inflation, a surge in “Magnificent Seven” stocks and a crypto rally. Additionally, bets that the Fed’s aggressive interest rate hiking campaign might be nearing an end powered the rally in the sector in recent weeks.
Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. Meanwhile, bitcoin, the world's largest cryptocurrency, soared more than 150% this year and surged past the $42,000 mark for the first time since April 2022 before retreating to near 40,000 levels. The massive rally came on the back of broad Enthusiasm about U.S. interest rate cuts and the imminent regulatory approval for Bitcoin ETFs (read: Bitcoin Reaches $42,000: 5 ETFs More Than Double in 2023).
Given the broad-based rally across sectors, we have highlighted five best-performing ETFs from different industries that have made technology the best performer. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK.
More Rally Ahead?
Finally, the Fed, in the latest FOMC meeting, hinted at three rate cuts for the next year while keeping the rates steady for this year. The central bank will cut rates by 75 bps next year, up from the previous forecast of two rate cuts in 2024. Markets are now pricing in a nearly 60% chance that the Fed will begin to cut rates in its March meeting, up from 40% the day prior, per data from the CME Group.
As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low. The reductions in interest rates, coupled with the ongoing rise of AI, will act as a major tailwind for the next year. Higher spending across the software, semiconductors, and digital media consumer sectors will provide a further boost to the sector.
The expansion of AI applications holds the promise of ushering in fresh opportunities for growth within the sector. The global digital shift has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping, thereby bolstering strength in the sector. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain and 5G technology will continue to fuel a rally.
Further, the tech titans have strong balance sheets, durable revenue streams and robust profit margins, making them attractive investments. They are better positioned to withstand a possible economic downturn and have demonstrated improved cost discipline.
VanEck Vectors Digital Transformation ETF (DAPP) – Up 191.8%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 22 securities in its basket. It charges 50 bps in annual fees and has accumulated $64.3 million in its asset base.
Valkyrie Bitcoin Miners ETF (WGMI) – Up 190.8%
Valkyrie Bitcoin Miners ETF is an actively managed ETF that invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF holds 22 stocks in its basket, with a double-digit concentration on the top four firms. It has amassed $33 million in its asset base and charges 75 bps in annual fees.
ARK Next Generation Internet ETF (ARKW) – Up 84.5%
ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 35 stocks in its basket. ARK Next Generation Internet ETF has amassed $1.6 billion in its asset base and charges 88 bps in annual fees (read: 5 Tech ETFs That Outperformed XLK in the Past Week).
VanEck Vectors Semiconductor ETF (SMH) – Up 65.7%
VanEck Vectors Semiconductor ETF offers exposure to the companies involved in semiconductor production and equipment. SMH follows the MVIS US Listed Semiconductor 25 Index, which measures the overall performance of companies involved in semiconductor production and equipment. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket. SMH has managed assets worth $10.9 billion and charges 35 bps in annual fees and expenses. It has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
SPDR NYSE Technology ETF (XNTK) – Up 64.8%
SPDR NYSE Technology ETF provides exposure to 35 leading U.S.-listed technology-related companies by tracking the NYSE Technology Index. Semiconductors take the largest share at 26%, while systems software, application software, application Software and broadline retail round off the next four spots. SPDR NYSE Technology ETF has amassed $625.1 million and charges 35 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
TSLA
|
By Shristi Achar A and Johann M Cherian
Dec 14 (Reuters) - U.S. stock index futures gained on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view".
The Fed had raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. On Wednesday, 17 of 19 Fed officials projected the policy rate would be lower by end-2024.
The dovish pivot in the central bank's statement triggered a rally in equities on Wednesday and sent the Dow Jones Industrial Average Index .DJI to a record closing high.
"Continuing disinflationary pressures has offered the Fed room to maneuver. Further, there are signs that rate hikes are loosening the labor market," said Emin Hajiyev, senior economist at Insight Investment.
"If the Fed can bring inflation down without these measures deteriorating much further, it strongly improves the central bank’s prospect of achieving a 'soft landing' and avoiding a recession."
Money markets now see an 88.6% chance of at least a 25-basis-point rate cut in March 2024, up from about 50% before the policy decision, while fully pricing in another cut in May, according to CME Group's FedWatch tool.
Treasury yields also fell to multi-month lows following Wednesday's events, with the yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.9675%.US/
The falling yields further cushioned equities, with megacap stocks like Alphabet GOOGL.O, Tesla TSLA.O and Nvidia NVDA.O inching up between 0.8% and 1.0% before the bell.
Investors will now parse the retail sales data for November and the weekly jobless claims number, both due at 8:30 a.m. ET, for more clues on softening inflation.
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were up 93 points, or 0.25%, S&P 500 e-minis EScv1 were up 12.75 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 59.5 points, or 0.35%.
AdobeADBE.O shed 4.5% after the Photoshop maker forecast annual and quarterly revenue below estimates.
ModernaMRNA.O advanced 6.1% after an experimental messenger RNA cancer vaccine it developed along with Merck MRK.N cut the chance of recurrence or death from melanoma by half after three years, when paired with Merck's Keytruda.
Occidental PetroleumOXY.N added 2.0% after Warren Buffett's Berkshire Hathaway BRKa.N acquired nearly 10.5 million shares of the oil giant for about $588.7 million.
Foot Locker FL.N rose 3.6% after Piper Sandler upgraded the sportswear retailer to "overweight" from "neutral".
Stocks love the Fed again https://tmsnrt.rs/3v4nD2u
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
End of preview. Expand
in Data Studio
README.md exists but content is empty.
- Downloads last month
- 1