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AMC rallies, Zoom pops, Nvidia hits a record, Tesla drops

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Yahoo Finance’s Jared Blikre reports on the day's trending tickers.

Video Transcript

- Want to check in with Jared Blikre, who has his eye on those meme stocks. Jared, AMC was on the brink of bankruptcy just, what, a couple of months ago, and now it has a market cap of $30 billion? Talk to us about it.

JARED BLIKRE: Well, what's more to say? Let's go to the WiFi Interactive and check out today's price action because it is striking. Now, first of all, there's a lot of green on this map, right? But the number one player here, AMC. It was as high as 125%, surpassing $30 billion in market cap. So climbing towards that Dogecoin market cap of $50 billion that you just mentioned there.

Now, AMC has been selling stock, as we know, and they've been doing that as the price is rising. So that gives them a better capital position. And I went back, when they authorized 500 million shares' worth of stock sometime in early April, the CEO said they weren't going to sell any this year. However, when the price rose, they took advantage of the opportunity. They'll have a few other things here and there. They have announced a new investor relations strategy today, which is pretty interesting in its own right. But look at that, 2800% year to date. That is an incredible move. Running out of superlatives here.

But I want to sort by performance and go over some of the other top performers here because we've got Bed Bath & Beyond. Guess what? That's up 119% year to date, but over the last month, it's really taken off, especially in the last few days, up over 53%. And then you look at-- take a look at some of the other tickers up there, KOSS Express, we have DDS, we have BlackBerry, all of these stocks getting a lot of attention here. And you've got to wonder, with the NASDAQ off here, is it a rotation that we're seeing from everything non-meme into the meme? That's kind of, you know, a joke, but maybe it's a little bit true, that we've seen that there's been these fits and starts, people chasing these hot markets. And it was crypto until a couple of weeks ago, and now the meme stocks definitely back in play.

- Yeah, but one of the few, I guess, trending tickers not a meme stock today is Nvidia. That stock I know hit an intraday record high. What's pushing that higher?

JARED BLIKRE: Well, I'll tell you what, it's been a long time coming for Nvidia, but the CEO was making some comments earlier today about the acquisition of ARM. That's that $40 billion purchase that they're going to make from SoftBank. You need regulatory approval all around the world. But if that goes through, that really increases their strength and their leverage within the market.

Now, most of these chip stocks-- and this is a very important industry group-- have not been making record highs recently. Nvidia is one of the first to do so. And so we'll have to see if the space can accelerate, because when we've seen the S&P 500 and the NASDAQ climbing higher, you've got to have the chips as part of that group.

- Got to have the chips, yes. All right, I want to talk about Zoom. We saw that stock just explode during the pandemic, as we were all, so many of us, working and schooling from home and using the video conferencing company. But now, as we're starting to emerge from the pandemic, you know, Wall Street's going, wait a minute, how much longer can this growth last? What is Zoom saying about all that?

JARED BLIKRE: Yeah, well, you know, the stock was cut in half. It was a $600 stock, and now it is a $300 stock, roughly, and trying to climb back. But we did get some color from the street on their earnings from yesterday evening. And let me just go through that right now. RBC is saying Zoom reported a good start to the year, highlights better than expected churn and continued uptake of Phone-- that's their phone product-- as well as higher implied second half growth of consensus. So concerns about the second half of the year kind of put by the wayside.

Now, the margins, they've had a lot of expenses, especially with their cloud costs, margins are significantly better than expected thanks to improving public cloud economics. Let me just pull up a chart here on the WiFi Interactive while we speak. You can see year to date it's still up about 3.5%. So that was RBC. They held it at an outperform, price target of 480.

Now I'm going to go to Citi. They have a neutral rating on the stock. They're saying Zoom has seen a good start to the fiscal year '22, with the company fighting off reopening trends. While revenue upside of 6% was light of buy-side expectations, stronger guidance is likely to be viewed as good enough offset. And Bloomberg, finally Bloomberg saying Zoom could acquire smaller firms in the collaboration market to achieve the goal of higher enterprise penetration, and this could boost its fiscal year sales growth more than 50%.

So let's take a longer-term view here. Let's go to a max chart. I remember we interviewed the CEO on their IPO day, and you can see what it's done since then. But that selloff from 600 to 300 hurts a little bit, and so you've got to consolidate and work that off as you look for that next catalyst. Doesn't look like this earnings statement is that catalyst, but it's a step in the right direction.

- That is for sure. And also want to bring everybody's attention to Tesla today, heading for its biggest drop in, what is it, three weeks. What's behind the selloff there?

JARED BLIKRE: There are concerns over its market share in China. And let me just bring up the EV space so we can look at a chart. What you're going to notice about the WiFi Interactive here is there's a lot of dark green, and not a lot of dark red. Now, it was a standout, but if I sort by performance here, you can really see what's going on, Tesla here in the lower right, down 3.65%.

Now, these are monthly numbers. You've got to take them with a grain of salt. But Credit Suisse is saying that Tesla's global market share decreased to 11% in April from 29% in March, likely making the company's lowest monthly share since January of 2019. Now, I have a comment by Wedbush, Dan Ives here. He's saying it's been a choppy year in China, along with a bunch of black eyes, and that combination and an overall risk off environment means that any bad news that the market would have dismissed last year is being taken on the chin right now.

So I want to highlight something that's pretty interesting. This is an intraday view of our heat map, but if we sort by year to date performance, what stands out here? Look at everybody on top. All right, so this is a SPAC, CCIV-- that's Luminar. But everybody else in this space-- that's Ford up almost 70%, Volkswagen 58%, GM 43%, Toyota Motors 14%, all of the traditional automakers gaining market share. And one more thing I want to highlight here. This is a tweet from JC Parets. He says, don't call it a comeback.

This is a chart of Ford versus Tesla. You take the price of Ford stock and then you divide it by the price of Tesla stock, and you come up with this very bullish inverted head and shoulders pattern. And it's taking off right now. And you take a look at what Volkswagen is doing here, this is Volkswagen versus Tesla. So it just shows that not only are they gaining market share, these other traditional companies in the auto space, they're also gaining in stock price. And the stock price is reflecting that.

- All right, thanks a lot, Jared. We're going to check in with you a little later on for our commodities report.