Tesla nears $500BN market cap

By Jonathan Jackson. Published at Nov 25, 2020, in Market Wrap

Markets reacted positively to outgoing President, Donald Trump reportedly saying he had recommended the General Services Administration, which helps transition to the new presidential regime, “do what needs to be done with regard to initial protocols”.

The news helped calm fears about a disorderly handover of power to incoming President Joe Biden.

Vaccine news also continues to influence markets.

eToro analyst Adam Vettese says, “AstraZeneca and the University of Oxford announced that their coronavirus vaccine is up to 90% effective, adding a third vaccine to the ones already announced by Pfizer and Moderna.

“The latest pair provided more data than Pfizer and Moderna, and revealed an average efficacy of 70%, depending on the dosages given and time between doses. Crucially, AstraZeneca’s vaccine can be stored at refrigerator temperature, rather than requiring the extreme cold storage that poses a logistical challenge for the Pfizer and Moderna vaccines.”

US markets closed higher in reaction, with the S&P 500 up 0.5% yesterday, before shares in Asia followed suit, with the Japanese Nikkei up 2.5% and Hong Kong’s Hang Seng up 0.1%.

Big news for Tesla is having an impact on that company. Tesla boss Elon Musk plans to build the world's largest battery-cell factory at the group's electric car plant near Berlin. It will be the first in Europe and is expected to churn out 500,000 Model 3 sedans and Model Y SUVs per year.

“Tesla’s share price passed the $500 milestone for the first time, pushing its market cap close to $500BN,” Vettese said. “The leap came after analysts at Wedbush raised their bull-case price target on the stock to $1,000. The firm highlighted that currently, 3% of all auto sales are electric, a number it expects to more than triple to 10% by 2025.

eToro’s stocks to watch for the day

Best Buy: Electronics retailer Best Buy has gained 39% this year, and more than 64% over the past 12 months, as mass working from home has led to a surge in demand for laptops, monitors and other consumer electronics. The firm delivers its latest quarterly earnings update today, just days ahead of Black Friday, a critical day in the retail calendar. Analysts are expecting the company to deliver an earnings per share figure of $1.71, up on their expectations from a few months ago. Currently, analysts are split between buy and hold ratings on the stock.

Dell Technologies: Similar to Best Buy, Dell has climbed 35% this year. The company will deliver its third-quarter earnings on Tuesday, with PC and server sales in focus, along with a proposed spring-off of the company’s 81% stake in cloud software firm VMWare. While business spending on computer equipment has been hurt by the pandemic, there is huge demand for servers from cloud providers. Investors will also be looking at how sales have stacked up versus Hewlett Packard, which reports earnings on the same day. Wall Street analysts are split between buy and hold ratings on the stock.

Autodesk: Software firm Autodesk provides products for industries including engineering, architecture and product design, with Tesla one of the users of its services. The company’s share price is up 40% over the past 12 months, taking its market cap past the $50BN mark. Autodesk delivers Q3 earnings on Tuesday, with the firm’s progress in cloud-delivered software, and whether it has been hurt by reduced business spending key points to watch. Currently, 14 analysts rate the stock as a buy or overweight, four as a hold and two as an underweight or sell.

In other trading news

Chris Beauchamp, Chief Market Analyst at IG says, “Equities are making further gains in trading on Tuesday morning, with the FTSE 100 up 50 points and US futures looking brighter too.

“Stocks continued in their broadly positive frame of mind on Tuesday, making steady gains after another good session in Asia overnight and a US trading day that saw a late rebound on news that Donald Trump was finally allowing at least part of the transition to go ahead.

“Signs of movement in the US political deadlock have combined with the steady drip of vaccine news to underpin a market that has yet to breach the highs seen earlier in the month.

“But the trickle of good news stories has helped to hold markets near to those highs, leaving them well-placed to push higher into December.

“A fall in France’s business climate index reminds investors that we are not out of the woods yet, although the resilience of the manufacturing reading provides hope that the overall global economy is holding up relatively well.

“Compass Group had already seen its shares rally in November thanks to the vaccine news, and after a period of consolidation annual results have given the stock a boost in early trading.

The shares should rally further as the focus shifts from lockdowns to reopening around the globe, driven both by vaccines and the arrival of spring which should make it easier to keep infection rates under control.

“After hitting a four-and-a-half low in March and then moving sideways throughout the summer it looks like Compass has rediscovered the momentum that made it such a winner over the past ten years.”

Tickers

Dow: +1.54%

S&P 500: +1.62%

NASDAQ: +1.31%

FTSE 100: + 1.55%

DAX: + 1.26%

CAC 40: + 1.21%

Asia Dow: + 1.24%

Nikkei 225: + 2.50%

Hang Seng: + 0.39%

ASX 200: + 1.26%

AUD: 0.74


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X