Netflix, Inc. (NASDAQ:NFLX) and Tesla Motors Inc (NASDAQ:TSLA) are two of the biggest beneficiaries of the return to momentum stocks. Both stocks are among this month’s biggest gainers—in spite of the fact that they were among the big-time losers just a few months ago.
Netflix, Tesla, Tripadvisor rally
Bloomberg reports that Netflix, Inc. (NASDAQ:NFLX), Tesla Motors Inc (NASDAQ:TSLA), and Tripadvisor Inc (NASDAQ:TRIP) have gained more than 16% over the last four weeks. With those gains, the stocks have gained back most of what they loss in March and April.
This week the NASDAQ Composite (INDEXNASDAQ:.IXIC) Index hit a 14-year high, while the Russell 2000 (INDEXRUSSELL:RUT) Index sits just 2% away from the previous record. Earlier this year, both of the indexes declined by 8% or more. The S&P 500 (INDEXSP:.INX) Index has also climbed, increasing in four of the last five weeks. Since June 13, the index hit a new record after climbing 1.2%.
Investors regain risk appetite
Investors have been concerned about the economy and also the valuations of high flying stocks like Netflix, Inc. (NASDAQ:NFLX) and Tesla Motors Inc (NASDAQ:TSLA). Internet and technology stocks were the hardest hit by those concerns, and they had a significant impact on the S&P 500, which slumped by up to 4% in April. However, economists are turning more positive on the economy, particularly after Fed Chair Janet Yellen said they expect the global economy to improve and grow faster than recent trends.
Netflix, Tesla, Tripadvisor attract investors again
With a 21% gain in the last 30 days, Netflix, Inc. (NASDAQ:NFLX) was the second biggest gainer in the NASDAQ 100. The company said just last month that it plans to expand in six countries in Europe. Tesla Motors Inc (NASDAQ:TSLA) has increased by 16% since May 19. Analysts generally predict that the company’s earnings will balloon upward by 46% this year. Tripadvisor Inc (NASDAQ:TRIP) has climbed by 19% over the last 30 days after the company increased its revenue growth guidance.
All three stocks lost more than 23% of their value in March and April. Unfortunately for some other stocks, recovery is nowhere nearby. For example, Twitter Inc (NYSE:TWTR) remains down by 39% so far this year.