1 share to buy, 1 to throw away when markets open: Tesla, Robinhood


Wall Street stocks ended lower on Friday, but the benchmark still posted a weekly gain as disappointing monthly US data did not shake risk appetite.

The week ahead should be even busy, given the start of the third quarter earnings season, which sees names like JPMorgan Chase (NYSE :), Bank of America (NYSE :), Citigroup (NYSE :), Wells Fargo. (NYSE :), Goldman Sachs (NYSE :), Morgan Stanley (NYSE 🙂 and Delta Air Lines (NYSE 🙂 all publish their latest financial results.

In addition, key economic data is also on the agenda for the week, including the latest numbers and figures.

Whichever direction the market takes, below we highlight one action that may be called for in the coming days and one that may experience further losses.

Remember though, our timeline is only for the coming week.

Stocks to buy: Tesla

Tesla (NASDAQ 🙂 shares are expected to see a surge in buying over the coming week following optimistic comments from CEO Elon Musk at a festival held at the electric vehicle maker’s new plant near Berlin this weekend.

Musk told an enthusiastic audience of around 9,000 that he plans to deliver the first vehicles to Tesla‘s new plant in Berlin as early as December. He added that volume production would be around 5,000, “but hopefully 10,000” vehicles per week, and that batteries would be manufactured at the site in volume by the end of the year. next.

In addition, he said he hoped the factory would build the trucks Tesla planned in the future. He warned, however, that volume production would take longer to achieve.

Meanwhile, Musk tweeted on Saturday that Tesla would start rolling out its Full Self-Driving (FSD) Beta 10.2 software to more drivers on Sunday or Monday, after the release was delayed late last week due to concerns. last minute regarding its construction.

TSLA daily chart

TSLA shares closed at $ 785.49 on Friday, reporting to EV Company, which recently announced plans to move its headquarters from Palo Alto in Silicon Valley, Calif., To Austin, Texas, a market capitalization of $ 777.6 billion.

At current valuations, Tesla is the world’s largest automaker, larger than names like Toyota (NYSE :), Daimler (OTC :), General Motors (NYSE :), Honda (NYSE :), and Ford (NYSE: ).

After posting a gain of over 740% in 2020, TSLA stock – which hit an all-time high of $ 900 on January 25 before an aggressive valuation reset hit the entire EV sector – only increased by 11% in 2021.

Tesla is expected to release its third quarter financial results after U.S. markets close on Wednesday, October 20. Consensus expectations call for the electric vehicle pioneer to post earnings of $ 1.44 per share, up nearly 90% from the previous year. Revenue is expected to jump 52% ​​year-over-year to a record high of $ 13.3 billion, boosted by strong shipments.

Stock to empty: Robinhood markets

Robinhood Markets (NASDAQ 🙂 stock is set to endure another tough week as investors continue to worry about the negative impact of several factors affecting the popular trading platform.

The latest negative news came after the financial services firm warned in a regulatory filing late Friday that the SEC’s potential intervention in a payments deal between brokerage houses and trading companies, known as the “Payment for the flow of orders” (PFOF), could present risks for its core Business.

The practice, in which brokerage firms are compensated for directing orders to different parties for the execution of trades, represents a significant stream of Robinhood’s income. Robinhood also said that possible regulation of cryptocurrency trading and digital currency markets, which accounted for 41% of its revenue in the second quarter, could be another cause for concern.

Adding to the pessimistic sentiment, the brokerage firm said in the amended filing that it would seek to speed up approval of when large blocks of shares can be sold by early investors.

HOOD Daily Chart

HOOD shares, which began trading on the New York Stock Exchange at $ 38 after the company’s much-publicized IPO in late July, ended Friday’s trading at $ 41.78, or more than 50% below their all-time high of $ 84.12 reached on August 4. Current levels, the Menlo Park, Calif.-based stock trading platform has a market cap of $ 35.9 billion.

Robinhood will release its results after the U.S. market closes on November 17.

Consensus projects a loss of $ 0.63 per share for the third quarter on revenue of $ 423 million. The company reported a second quarter loss per share of $ 2.16 of $ 565 million, benefiting from an increase in crypto trading.

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