Tuesday’s Headlines: Why Are Tech Shares Rising?

Tuesday’s Headlines: Why Are Tech Shares Rising?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Under Armour (UAA) +4.6%

IMAX (IMAX) +4.5%

Tesla Motors (TSLA) +4.4%

Ford Motor Company (F) +4.4%

Google (GOOG) +4.1%

Moving Down ⬇️

Trupanion (TRUP) -7.2%

Etsy (ETSY) -5.3%

Datadog (DDOG) -4.5%

Lemonade (LMND) -3.7%

Redfin (RDFN) -3.6%

1. On Monday, shares of Alphabet (GOOG), Facebook (FB), and Microsoft (MSFT) each hit all-time highs as investors poured back into growth stocks once again. Facebook rose 3.4% yesterday, while Alphabet jumped 4.2%, and Microsoft gained 2.8%. The moves came amid broader market sentiment, encouraged by employment growth in the U.S and optimism about the strong pace of economic recovery. In addition, the advance in growth-oriented industries fueled the S&P 500 (VOO), Nasdaq (QQQ), and Dow Jones (DIA) to all gain more than 1% on Monday. Read more on the story here

2. Tesla (TSLA) produced jaw-dropping first-quarter delivery numbers last Friday, resulting in the EV company’s shares jumping as much as 7% at the opening bell yesterday. The figures blew past analysts' expectations of 168,000 vehicles, with Tesla reporting that it delivered 184,800 and produced 180,338 cars. Analysts believe that demand for Tesla’s Model 3 and Y is hitting its next stage of growth and say that the company could now exceed 850k deliveries for 2021. The EV manufacturer still faces chip shortages and supply chain challenges, but news of the strong sales numbers was very much welcomed by shareholders after the string of recent negative reports for Tesla. See more here

3. Alphabet (GOOG) had a major victory on Monday after the U.S. Supreme Court ruled in favour of the tech giant against Oracle. The court decided that Google's use of Oracle’s software code to create the Android operating system did not violate federal copyright law, saving Google an estimated $8 billion. The decision of the case is great news for developers at every level because if the court had allowed Oracle to enforce a copyright on its code, this would have negative impacts on the public by making it a “lock limiting the future creativity of new programs.” Read more on the case here.