Why Is Tesla Up 17%?
Happy Friday folks!
If you’re feeling slight whiplash from watching the market recently, you’re not alone. Tech shares made a comeback this week, with Tesla leading the gains, and major indexes bounced back and forth reacting to moves in bond yields. It seemed like the worst of it was over until growth and tech shares took another tumble this morning over stimulus and inflation fears.
All of this market noise shouldn’t worry long-term investors though, as we just need to look forward to our company’s growth strategies. The best part? There are still some top-performing stocks on sale.
Here were the biggest movers in the MyWallSt shortlist for this week (from market-close on Friday 05/03 to market-close on Thursday 11/03):
Moving Up ⬆️
Redfin (RDFN) +23.6%
GoPro (GPRO) +21.4%
Tesla Motors (TSLA) +17.0%
Zillow (Z) +16.4%
The Trade Desk (TTD) +15.6%
Moving Down ⬇️
Stitch Fix (SFIX) -30.2%
IMAX (IMAX) -4.9%
Planet Fitness (PLNT) -3.1%
Calavo Growers (CVGW) -2.9%
Wix (WIX) -1.6%
On Thursday, Redfin highlighted just how small its "iBuyer" service is, saying that top real estate companies that offer to buy houses directly, including Zillow and other rivals, accounted for just 0.3% of U.S. homes sold in Q4. The stock is up over 23%, likely due to investors now realizing that Redfin’s small market share shows its potential for future growth. This was welcome news for shareholders who became worried when Redfin said in its February earnings report that it was being held back by a shortage of homes to sell, which triggered a sell-off.
The action camera-makers shares were up more than 21% this week despite no significant company news. However, between the company’s high short interest ratio of 10% and the resurgence of Reddit’s ‘wallstreetbets’, it’s not hard to join the dots. GoPro is being talked about more and more on the controversial subreddit and there are worrying signs that it could soon become the next victim of a GameStop-esque short-squeeze. Unfortunately for GoPro, the stock might be headed for further volatility once Biden’s stimulus checks are cashed and investors begin spending.
The world’s most popular EV maker’s shares gained over 17% as tech and growth stocks bounced back this week following the recent sell-off. The most significant cause of Tesla’s jump was new data which showed an increase in sales in China. The Chinese auto industry body, CPCA, stated that Tesla had sold 18,318 China-made Model 3s and Model Ys vehicles in February, up from 15,484 in January. This data was great for investors to see, especially as its rivals saw declines, indicating Tesla’s market dominance in the largest EV market in the world.
The Web-based real estate company’s shares soared more than 16% on news that it’s hiring more than 2,000 people in 2021, boosting its total workforce by 40%. Zillow said the rapid hiring spree “was sparked by a year of impressive growth across the business.” The new roles will mainly be in technology, mortgage, loans, and software development — a sure sign to investors that the company is planning further expansion into different product offerings for property shoppers.
The online styling company’s stock plunged more than 30% this week after missing its own forecasts for the last quarter, posting losses of $0.20 per share on revenue of $504.1 million. The earnings report highlighted the effects that COVID-19 has had on the clothing industry as the personal styling company reported disappointing holiday sales. However, if Stitch Fix succeeds in growing revenue by 20% as management predicts, this should translate into market-share growth and a booming client base to keep investors happy.