Tesla Motors, Pandora Media and GoPro all had big announcements recently, although their stocks haven’t moved much. The lack of movement may be opening up opportunities for investors who are interested in the companies, according to Wall Street analysts.
Stock chart via Google Finance
Can Jay Z disrupt Pandora?
The announcement related to Pandora wasn’t from the company itself but rather from rapper Jay Z. He said he wants to disrupt the streaming radio service provider with Tidal, his music subscription service. The rapper recently purchased Tidal for $56 million, and it’s different from other services because musicians hold a majority ownership. The service offers two payment plans, one at $10 per month and the other at $20 per month.
CNBC spoke to Fast Money trader Guy Adami about Pandora Media and Jay Z’s announcement. He sees the risk-reward “sets up pretty interestingly.” Trader Brian Kelly said that if the rapper’s announcement triggered a selloff in Pandora shares, there would be an opportunity for investors to get into the stock because Pandora won’t compete for paid subscribers. That hasn’t happened yet, however, as shares only edged as much as 0.67% lower to $16.28 per share.
Trader Dan Nathan disagreed with Adami, however, saying he sees Spotify as a bigger threat because it has five times the number of subscribers that Pandora has.
Tesla to announce new product line
On Monday, Tesla CEO Elon Musk tweeted their plan to unveil a new product line on April 30. The EV manufacturer’s shares spiked on Monday, climbing 3% to over $190 per share but still not breaking the $200 emotional level. As of this writing, shares were up 0.1% to $190.76 per share.
Adami suggested that Tesla stock might be worth the risk even now, but Kelly isn’t convinced. He said investors won’t be convinced to buy Tesla shares either unless they see evidence that the automaker will make major changes to the electric grid as we know it.
GoPro upgraded by Daugherty
GoPro earned a big upgrade from Dougherty and Company analysts on Monday, pushing shares 2% higher to surpass $43 per share. The firm moved its rating from Neutral to Buy, but Adami does think GoPro shares will be a buy until they close higher than $46 per share.
Nathan continues to present the bear case, saying that competition will drag GoPro down under $40 per share. As of this writing, shares of GoPro were up 0.47% to $43.78 per share.