Tuesday’s Headlines: Tesla Stock Approaches $800 After Incredible One-Day Jump
1. Shares of Tesla soared 19.8% on Monday after Argus Research raised its price target to $808 from $556. The firm’s analysts cited Tesla’s strong fourth-quarter financials, which exceeded Wall Street’s expectations last week, and also raised its earnings per share estimate for the next quarter to $8.01 from $5.96 and expects that to double by 2021. The shares were trading just over $717 after the opening bell and hit an all-time high of $786.14, bringing its stock up more than 85% year to date. Read more here.
2. Google parent company Alphabet’s shares fell 4% after hours on Monday after the company missed on revenue and also revealed Cloud and YouTube revenue for the first time. Earnings per share came in at $15.35 on revenue of $46.08 billion versus estimates of $12.53 on top of $46.94 billion. YouTube ads generated $15.15 billion in revenue in 2019, while its cloud business generated $8.92 billion in revenue, representing a 35% increase year over year. See more here.
3. Stocks rose solidly on Monday, recovering some of the losses from the previous session’s steep sell-off due to coronavirus fears, with the likes of Square and Stitch Fix up around 6%. The Dow closed 0.5% higher, the S&P gained 0.7%, and the Nasdaq was up 1.3% by market close on Monday. One company that appears to be thriving is Zoom Video Communications, which rose 15% on Monday as more people opt for video interaction due to the ongoing virus threat. Read more here.