Shares in tech giant Tesla closed at $221.31 (£177.85) in the latest trading session, marking a +1.7% move from the prior day as the stock outpaced the S&P 500's daily gain of 0.24%. Today, its stock is set for another boost, according to pre-market estimates.
It comes as shares in the group have gained nearly 30% in the past month as it approaches its next earnings release.
The US automotive giant is expected to report earnings of $0.82 per share, which would represent year-over-year growth of 7.89%, according to a Zacks Consensus Estimate, which is also projecting net sales of $24.39bn, up 44.01% from the year-ago period.
“For the full year, our Zacks Consensus Estimates are projecting earnings of $3.56 per share and revenue of $99.38 billion, which would represent changes of -12.53% and +22%, respectively, from the prior year.”
In April, Tesla reported first quarter revenue of $23.33bn, beating analysts’ expectations with autos revenue up 18% year-on-year and energy revenue jumping 148% to $1.53bn. Meanwhile, earnings per share hit 85 cents, meeting consensus forecasts and net income fell 24% versus last year to $2.51bn.
The company has faced a squeeze on margins because of cost inflation, the underutilisation of new factories, and price cuts to tackle the softening consumer backdrop.
CEO Elon Musk also highlighted the macroeconomic uncertainty amid the US Federal Reserve’s rate hiking path, which is denting demand. However, Tesla said it still aims to produce 1.8 million vehicles this year, potentially up to 2 million.
Advanced Micro Devices (AMD)
US tech company AMD has seen its share price increase by 44% over the past three months – and its stock closed more than 5% on Tuesday.
The company has been getting more and more attention from investors after a Bloomberg article, published on 4 May, reported that it was a hardware and engineering partner of Microsoft, which has become a leading artificial intelligence (AI) stock.
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AMD’s chips are also used to power a variety of devices and platforms, including games consoles and cloud services. For example, it provides the processing and graphics power in Sony's PlayStation 5 and Microsoft's Xbox Series X|S game consoles, which have been a main driver of growth for the firm.
Moreover, investors are aware that chip demand is likely to increase as different sectors of the tech sector, such as AI, continue to expand and require the services of companies like AMD.
Meanwhile, on Tuesday, Citigroup analyst Christopher Danely shared his thoughts on AMD to Best Stocks and said it deserves a “neutral” recommendation. He also raised the price target for its stock from $85 to $120.
Shares in bookmaker 888 surged at the European market open on Wednesday after Bloomberg reported that a consortium of gambling industry veterans have amassed a 6.6% stake in the owner of William Hill, on the belief that its assets are undervalued.
The group includes Lee Feldman, the former chairman of GVC Holdings, now Entain Plc (ENT.L).
“This could mark the beginning of significant changes for 888 including the potential for a C-suite and broader strategic shake-up. Even after this week’s surge, shares in 888 have more than halved in value over a one-year period, in stark contrast to Flutter which is up by more than 70%. This is providing a chance for opportunistic investors to strike while the iron is hot, making the most of its depressed share price,” Victoria Scholar, head of investment at Interactive Investor, said.
Shares in 888 surged 14% on Tuesday with an even bigger percentage gain today of 22.5%, at the time of writing.
“This has helped the stock swing from a year-to-date loss to a gain of more than 6% since the beginning of January. The consortium provides a vote of confidence in the group and arguably could mark the beginning of a more bullish phase for the stock,” Scholar added.
Shares in Inditex are also up today, by 6.13%, after the owner of Zara, Massimo Dutti and Stradivarius reported a 54% surge in first quarter profit.
The company also said its net profit reached €1.2bn in the three months to April, outpacing analysts’ forecasts for €98m. Meanwhile, its sales rose by 13% to €7.56bn, meeting consensus expectations.
Victoria Scholar said the company is successfully navigating the challenges of a sluggish global growth backdrop and the cost-of-living crisis.
“Inditex’s competitive pricing continues to draw in customers at a time when many shoppers are refraining from more expensive purchases. Inditex has managed to pass on some of its additional cost pressures, including loftier wage bills to consumers in terms of higher prices without denting demand, allowing the fashion group to preserve its gross margin at 60.5%.
“Inditex also started charging online shoppers for returns, which rather than deterring purchases, has provided some financial support, and may actually have encouraged customers to add more items to each shopping basket in order to maximise the small levy,” she said.
Scholar also noted how Zara’s in-store technology, such as its self-checkout booths, have also improved the customer experience, expedited the shopping experience, and minimised queuing times.
“Inditex shares are up significantly today, lifting their year-to-date gain to around 30%, outperforming high street rival H&M which is up around 23%. There is a very positive assessment from the analyst community on Inditex with 21 buy recommendations versus 8 holds and just one sell,” she added.
Watch: Musk: Tesla happy to license self-driving tech to other brands