From $500 to $6000
By Thu, Jan 16, 2020
Hey Scoopers,
The stock market had a mixed bag of good and bad news, and the three indices didn’t agree on the direction — more on that in the “Overall Market” section.
Beyond the overall market, maybe two enemies are getting back together. And, a car vending machine may have lost its initial appeal among financial analysts — more on that in the “What’s Up?” and “What’s Down?” sections.
Oh, and by the way, one financial research firm believes Tesla can fly to the moon, even higher than its current $500+ stock price — more on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market:
Market Recap
- U.S. markets: The three indices had a mixed reaction to the good and bad news of Tuesday. Scroll to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price is nearing the $9,000 mark. The excitement is coming thanks to the launch of Bitcoin options where traders can trade Bitcoin contracts. Add one more financial product to the list of financial engineering that is happening in the market.
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A day of mixed news
After a few days of synchronized upward movement, on Tuesday, the indices didn’t agree on the direction. The Dow finished in the green, while the S&P 500 and the Nasdaq ended in the red zone.
It was a day with a mixed bag of good and bad news. On the one hand, the month-over-month Consumer Price Index growth came slightly lower than the expectations. Also, the news came that the China and U.S. trade deal that is being signed on Wednesday won’t remove the tariffs President Trump has levied on Chinese products, and there is disagreement on whether to move to the phase two immediately or wait for phase one to be implemented. On the other hand, bank stocks managed to report a solid profit.
Let’s get back together.
So, what happened?
Shares of FedEx (Ticker: FDX) were up more than 2% on Tuesday. The company hasn’t seen a good day since it “broke up” with Amazon (Ticker: AMZN). However, according to CNBC, maybe there is light in the future of these two enemies. Amazon removed the ban for 3rd-party sellers to use FedEx. Earlier in the year, the ban was perceived as a nail in the coffin of the relationship between the two companies and have dragged FedEx to new lows. The elimination of the ban doesn’t mean the two companies are back working together. However, its the good news FedEx investors wanted to hear for a while.
Maybe a car vending machine is losing its coolness?
So, what happened?
Shares of Carvana (Ticker: CVNA) were down more than 7% on Tuesday. You may have seen the company’s TV ad these days. They show their iconic car vending machine where you can buy a car and pick it up from a glass-tower of cars. The stock gained almost 200% in 2019. However, it is one of those rapidly growing stocks that hasn’t generated a profit since its IPO a few years ago.
The decline comes after a few research firms and analysts gave the stock a “hold” rating, sighting other players in the vehicle e-commerce market as leaders.
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Can Tesla fly to the moon?
So, what happened?
Shares of Tesla (Ticker: TSLA) are flying high up these days. Most investors are getting nervous as the company’s stock price is getting out of hand and distanced from the reality of its operations and challenges. However, one financial research firm believes the stock price can go as high as $6,000 per share.
How can this be possible?
The case for Tesla at $6,000 per share has two legs. On the one hand, several other car manufacturers are far behind Tesla in releasing their electric vehicles. On the other hand, Tesla is already collecting significant data from its vehicles and feed it to its autonomous driving artificial intelligence engine. With that, Tesla may be the first-mover in the autonomous vehicles market too. Combine those two, this is the car company of the future, and no one can come anywhere near it in the next five years.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
