Tesla Stock Performance And WallStreetBets Mentions Have A 'Real' Connection: Barclays

Shivdeep Dhaliwal

Tue, Feb 23, 2021, 10:05 PM2 min read

In this article:

Tesla Inc (NASDAQ: TSLA) stock movements and the Reddit investment discussion board r/WallStreetBets have a "real," even if "nuanced," connection, according to analysts at Barclays.

What Happened: The movement of the automaker’s stock has a correlation with mentions on r/WallStreetBets, the same Reddit forum at the center of the GameStop Corp (NYSE: GME) short squeeze, Barclays said in a note, Gizmodo reported.

“On the autos team, we have painfully learned that social media memes can matter more for TSLA share performance than actual financial metrics, fundamentals or (dare we say) valuation,” the analysts at the British bank wrote, Gizmodo noted — citing a CNBC report.

“There is a positive correlation between the number of WSB submissions exclusively citing TSLA, and the performance of the stock.”

Why It Matters: Many Tesla investors ascribe any negative news related to the company as the work of short-sellers, noted Gizmodo.

Tesla stock has plummeted nearly 22% since it touched $900 in late January. The downwards momentum in the stock is due to the company’s Bitcoin (CRYPTO: BTC) investment and demand concerts, as per Wedbush analyst Daniel Ives.

As of press-time, Tesla had a comment volume of 2,228, making it the second most discussed company on r/WallStreetBets, according to SwaggyStocks.com.The most discussed ticker was SPDR S&P 500 ETF Trust (NYSE: SPY).

Price Action: Tesla shares rose nearly 2.5% in the after-hours session to $716.50 on Tuesday after closing the regular session 2.19% lower at $698.84.
Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.

Latest Ratings for TSLA

Feb 2021	Morgan Stanley	Maintains	Overweight
Feb 2021	Piper Sandler	Maintains	Overweight
Jan 2021	Deutsche Bank	Maintains	Buy

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

See more from Benzinga

Mark Zuckerberg got $24.4 million in ‘other compensation’ in 2023—but Meta also treated staff well, with the median employee making $379,000
On paper, Mark Zuckerberg is Meta’s lowest-paid employee, with a $1 dollar salary and no bonus.
Fortune•18h ago
$433 Billion Gone! One Stock Loses More Value Than Tesla
Tesla's loss of $328.3 billion this year in stock value certainly hurts. But it's only the second-largest market value loss in the S&P 500.
Investor's Business Daily•17h ago
Analysts reset Microsoft stock price targets ahead of highly anticipated earnings
Microsoft, which overtook Apple as the world's most valuable company earlier this year, is looking to cement its AI market leadership.
TheStreet•6h ago
Analysts reboot Amazon stock price target ahead of earnings
This is what could happen next to Amazon shares.
TheStreet•5h ago
Suze Orman Decided To Drop Homeowners Insurance After An Outrageous Quote: '$28,000 For A 2,100-Square-Foot Condo. Are You Kidding Me?'
Finance expert Suze Orman has voiced concerns about the impact of climate change on property insurance costs, asserting it could threaten the American dream of homeownership. Orman, 72, faced a $28,000 annual insurance quote for her Florida oceanside condo, leading her to forego coverage entirely. She highlights a troubling trend where soaring insurance costs driven by frequent and severe weather events may deter Americans from buying homes. Don't Miss: For many first-time buyers, a house is abo
Benzinga•2d ago
China's Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses
With rising inflation, American consumers are increasingly turning to the Chinese e-commerce platform Temu for their shopping needs. With its enticing tagline “Shop like a billionaire,” Temu has captured 17% of the U.S. market share, posing a challenge to traditional American retailers such as Amazon.com Inc., Dollar Tree Inc. and Five Below Inc. The rise highlights the lucrative and disruptive nature of startups. Owned and operated by PDD Holdings Inc. (NASDAQ:PDD), Temu offers a wide range of
Benzinga•8h ago
Meta stock plummets 15% after second quarter outlook disappoints
Meta reported its Q1 earnings after the bell, beating analysts' expectations on the top and bottom, but a disappointing Q2 forecast sent shares falling.
Yahoo Finance•9h ago
Should You Buy Super Micro Computer Stock Before Earnings?
Super Micro Computer stock has many investors interested in its quickly approaching update.
Motley Fool•8h ago
Ford tops Q1 earnings expectations, sees full-year profit 'tracking to high-end' of guidance
Ford reported first quarter results after the bell that beat expectations on Wednesday, with its changing product game plan front and center along with its focus on gas and hybrid offerings.
Yahoo Finance•7h ago
Chipotle blows by earnings estimates as resilient foot traffic, margin expansion boost Q1 results
Chipotle posted another strong quarter against a difficult macro backdrop.
Yahoo Finance•8h ago

News

Life

Entertainment

Finance

Sports

New on Yahoo

Yahoo Finance

Tesla Stock Performance And WallStreetBets Mentions Have A 'Real' Connection: Barclays

Recommended Stories

Mark Zuckerberg got $24.4 million in ‘other compensation’ in 2023—but Meta also treated staff well, with the median employee making $379,000

$433 Billion Gone! One Stock Loses More Value Than Tesla

Analysts reset Microsoft stock price targets ahead of highly anticipated earnings

Analysts reboot Amazon stock price target ahead of earnings

Suze Orman Decided To Drop Homeowners Insurance After An Outrageous Quote: '$28,000 For A 2,100-Square-Foot Condo. Are You Kidding Me?'

China's Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses

Meta stock plummets 15% after second quarter outlook disappoints

Should You Buy Super Micro Computer Stock Before Earnings?

Ford tops Q1 earnings expectations, sees full-year profit 'tracking to high-end' of guidance

Chipotle blows by earnings estimates as resilient foot traffic, margin expansion boost Q1 results