Tesla Motors Inc, Facebook Inc, Netflix, Inc. To Trade Actively Today

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Tesla Motors Inc, Facebook Inc, Netflix, Inc. To Trade Actively Today
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Tesla Motors Inc (NASDAQ:TSLA), Netflix, Inc. (NASDAQ:NFLX) and Facebook Inc (NASDAQ:FB) are three trending IT stocks expected to trade actively in Monday’s trading session. Tesla stock dropped on Friday, breaking into bear market territory similar to what Netflix and Facebook shares experienced. These three stocks were huge winners in 2013, but Tesla was the top performer with an increase of 344% last year.

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No specific reason for the recent sell-offs

According to Andrew Left at Citron Research, Tesla Motors Inc (NASDAQ:TSLA) and Netflix, Inc. (NASDAQ:NFLX) are the “cult stocks,” which implies that these stocks have committed investors, who follow their product and also the stock trends. No specific reason for the recent sell offs can be unearthed for these stocks, but John Spence at Covester said that he is concerned about higher interest rates, which will eventually cause investors to reduce their risk.

Jim Chanos of Kynikos associates, who has been cautioning investors against Tesla Motors Inc (NASDAQ:TSLA) and Facebook Inc (NASDAQ:FB) since September, believe that the market caps of both the stocks are substantially above tradable floats, which might cause volatility. Other stocks that are trading in bear territory are Amazon.com and Pandora Media Inc.

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Market sentiments matter more for Tesla

Tesla Motors Inc (NASDAQ:TSLA) has been at the gunpoint of the short sellers, and short interest in Tesla a few weeks ago totaled to more than 31 million shares, which is around 37% of the 84.5 million shares that are traded on the open market. The direction of movement of Tesla shares is greatly influenced by market sentiments rather than factors directly related to its business. Many investors and analysts are enthusiastic and bullish on Tesla, but right now the short sellers have the upper hand.

Just a month ago, Facebook Inc (NASDAQ:FB) shares outperformed analysts’ price targets and the stock soared to $70, up 28% for the year. Overall, 38 analysts currently assign a Buy rating on the stock, and 16 assign a target price below the trading price.

Biotechnology stocks have also been crushed over the last couple of weeks, after enjoying a strong run-up in recent months.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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3 COMMENTS

  1. Sold my tesla bought more Facebook and a gt3 rs 4.0. Thank you tesla buy analysts, ev proponents and individuals who actually believe this stock is fair value!

    I’m the in the white porsche ca license plate ‘mymod-s’

  2. Let’s get deeper than getting used or forced to chew madness, Nokia which had distribution center all over the world, and once upon a time had more than close to 1 billion mobile users. Earned in billions, and have capability to turn table around and earn in billions again, has its own software division and research unit, loads of patent and talents, better name and reach all over the world. This was acquired for 7.5 billion. On the other hand, Oculus which is just a prototype, and has loads of disadvantages such as size and portability, Heats up head and brain if worn for more than 1 hour, do not have proper customers, hardware or software, no distribution centers, and not much complexity in hardware, than just some headset and closer screen, better and more comfortable options available in market. 2 billion for this is utter waste and FB has literally burnt that money to waste

    Whats app, which was acquired for 19 billion can only make that money after 20+ years and till then it may even die. Many started using competitive apps now. This was the worst of the worst purchase and I have ever seen in my entire life. I dont believe in promises, but i only take performance. FB has showcased fear of getting killed in market by wasting so much, and In various angle, FB had showcased no respect for investors money.

    Now, i seriously doubt the credibility or intention of some analyst who support FB madness.

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