Netflix Co-Founder and Co-CEO Reed Hastings joins ‘Influencers with Andy Serwer’ to discuss the company’s growth during the pandemic and its latest deal with Prince Harry and Meghan Markle.
Netflix Co-Founder and Co-CEO Reed Hastings joins ‘Influencers with Andy Serwer’ to discuss the company’s growth during the pandemic and its latest deal with Prince Harry and Meghan Markle.
A $4.3 billion battery-making company backed by Bill Gates could rival Tesla.
Tesla stock turns lower after Elon Musk says some of Tesla’s battery innovations were ‘close to working.’
(Bloomberg) -- Carvana Co. has yet to post a quarterly profit since going public in 2017, but it’s made Ernie Garcia II and his son Ernest Garcia III two of the richest people in America.The elder Garcia is the largest shareholder of Phoenix-based Carvana, the online retailer that sells cars out of massive vending machines. His son, Garcia III, is the company’s chief executive officer. Together they’re worth $21.4 billion, according to the Bloomberg Billionaires Index.Shares of the company surged 31% in New York on Tuesday after it projected record revenue and profit margins. The stock has rallied almost 150% this year as Americans have turned to buying household essentials, entertainment and, increasingly, used cars online.“Covid-19 is prompting consumers to seek out used cars, and CVNA is a key beneficiary of this trend,” said Alexander Potter, an analyst at Piper Sandler, in a research note Tuesday.Carvana lets customers choose from more than 19,000 cars and complete purchases in as little as 10 minutes, according to its website. Buyers have the option of picking up their car at more than a dozen vending machines located around the country, using a giant coin. Its revenue doubled to $3.9 billion last year as it sold about 200,000 cars. It now sees a path to 2 million sales a year.Garcia II is worth more than $15 billion and his son $6.4 billion, according to Bloomberg’s Index, which tracks the daily fortunes of the world’s richest 500 people.Carvana has been the target of skeptics and short sellers in the past, and its shares have been volatile since it went public. It has rallied more than 670% since a March low and has a $36.2 billion market valuation. Roughly a quarter of the company’s float is sold short and the short interest ratio -- a gauge of how many days it would take for short sellers to cover their positions -- was near a record for this year at the end of August, according to data compiled by Bloomberg.The company said Tuesday it will sell $1 billion of new debt, seizing on the boom in demand for its vehicles and low yields in the corporate bond market. Around $600 million of the proceeds will be used to refinance existing debt, with the rest held as cash on the balance sheet.(Updates with short interest in penultimate paragragh.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
At last report, the population of the world totaled some 7.8 billion souls. With COVID-19 continuing to run rampant -- indeed, a "second wave" of infections is already starting to swamp health care facilities in France, Spain, and perhaps also the UK -- and most potential vaccines against the coronavirus requiring two shots for complete effectiveness, this means there's an immediate need for more than 15 billion doses of vaccine.Now... who's going to make all those doses?B. Riley FBR analyst Mayank Mamtani makes the case that Novavax (NVAX) has an important role to play in this fight against coronavirus, even if its NVX-CoV2373 vaccine isn't necessarily first to market.Mamtani believes that Novavax's vaccine, which he affectionately refers to as "'2373," ranks among the top six "first wave" candidates for proof against coronavirus, demonstrating superior immunogenicity and reactogenicity, while also being "refrigerator stable" at temperatures between 2 and 8 degrees Celsius. Competing "mRNA constructs," notes the analyst, often require dry ice to keep them fresh, and temparatures as low as negative 80 degrees Celsius.But effectiveness and superior storage characteristics are just one part of this story.In a world clamoring for production of 15 billion doses -- at least, because if immunity conferred by vaccine is not permanent, then annual immunizations and additional doses may be required subsequently -- manufacturing capacity is easily as important as vaccine effectiveness. In this regard, Mamtani notes with approval Novavax's formal agreement last week to partner with India's Serum Institute of India Private Limited (SIIPL) to expand on its own manufacturing capacity.Mamtani points out that SIIPL , located in the world's second most populous country, is already the largest vaccine manufacturer in the world, producing 1.6 billion doses of various vaccines annually. Its agreement to devote some of its production capacity to Novavax, enough for 1 billion doses annually, promises to double the latter's production capacity to more than 2 billion doses annually within the next nine to 12 months.Even combined with other vaccines being manufactured by other vaccine manufacturers, this will leave the world woefully undersupplied with vaccines against COVID-19. From an investor's point of view, however, this isn't necessarily a bad thing as it means that "demand will continue to outpace supply, at least until the middle of 2021," giving Novavax a certain amount of pricing power despite all the competition it is likely to encounter.What's more, this pricing power, and this demand for Novavax's product, could continue longer than you might think. At a minimum, Mamtani sees demand for COVID-19 vaccines continuing for the next 12-24 months. Indeed, it could take that long just to get a first round of two-dose vaccines manufactured and distributed to everyone who needs them. And as already mentioned, there's also the potential for continuing demand in years to come if it turns out that immunity from coronavirus is not a "one and done" thing, but something that needs to be renewed periodically with annual booster shots.In short, Mamtani thinks investors' decision to sell off Novavax stock by some 30% since early August is a mistake. The analyst continues to view Novavax stock as a "buy," and stands pat on his price target of $257 a share -- more than twice what the shares cost today. (To watch Mamtani's track record, click here)Most on the Street keep a Buy rating, too – in fact, 4 out of the 5 analysts to post a NVAX review over the last 3 months suggest just that – with the remaining one recommending a Sell. NVAX's Moderate Buy consensus rating is backed by a $227.60 price target – suggesting a 104% upside from current levels. (See NVAX stock analysis on TipRanks)To find good ideas for coronavirus stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Restaurant bankruptcies are starting to pile up.
Is it time for the bears to break out the champagne glasses? Not so fast, says Goldman Sachs. Volatility has ruled the Street for the last few weeks, leading some to conclude that those with a more pessimistic outlook had been vindicated, but the firm believes stocks can still climb higher.According to Goldman Sachs’ head of U.S. equity strategy, David Kostin, the S&P 500 could still hit 3,600 by the end of the year, and 3,800 by mid-2021, on the back of vaccine-related optimism and progress with the economic reopening. This would reflect gains of 10% and 16%, respectively, should the index ultimately reach these targets.“Despite the sharp sell-off in the past week, we remain optimistic about the path of the U.S. equity market in coming months. The Superforecaster probability of a mass-distributed vaccine by Q1 2021 has surged to nearly 70% and economic data show a continuing recovery,” Kostin wrote in a recent note. On top of this, the strategist argues the vaccine’s arrival will push U.S. GDP growth to 6%, compared to the 3.9% consensus estimate.Given Kostin’s outlook, we wanted to check out three stocks scoring major praise from Goldman Sachs. Not only have they been given a Buy rating, but the firm’s analysts also see at least 50% upside potential on tap for each. Using TipRanks’ database, we found out that all three tickers have gotten a thumbs up from analysts at other firms as well. Let's take a closer look.Intellia Therapeutics (NTLA)Focused on utilizing gene editing to develop cell therapies, Intellia Therapeutics wants to stomp out cancer and other immunological diseases for good. Based on its innovative technology, Goldman Sachs recommends that investors pull the trigger.Representing the firm, 5-star analyst Salveen Richter believes that what makes NTLA a stand-out is its “use of an adaptive gene editing system based on a proprietary lipid nanoparticle (LNP) delivery method of CRISPR/Cas9 to leverage multiple gene editing strategies.” These include the generation of knock-outs (KO) for toxic genes, restoring functional genes by inserting new DNA sequences and the use of consecutive editing combining KO and insertion approaches.“We are positive on NTLA’s in vivo gene editing approach as it offers a modular system with CRISPR/Cas9 gene editing for functionally curative outcomes. While we note the initial focus is on delivery to the liver, extrahepatic tissue targeting (i.e. CNS) could expand the breadth of NTLA’s platform. NTLA is also leveraging its CRISPR/Cas9 editing tools ex vivo to create next-generation engineered cells that can treat oncological and immunological diseases,” Richter explained.To this end, the analyst sees several potential catalysts on tap for the next year. Proof-of-concept data for lead program NTLA-2001, its therapy targeting transthyretin amyloidosis (ATTR), a slowly progressive condition characterized by the buildup of abnormal deposits of a protein called amyloid (amyloidosis) in the body's organs and tissues, could come by mid-2021. This data stands to “inform the drug’s clinical profile (safety/tolerability and early signs of sustained TTR knockdown),” which would de-risk NTLA’s in vivo editing platform, in Richter’s opinion.On top of this, IND-enabling studies for NTLA-2002, its therapy designed for hereditary angioedema (HAE), and NTLA-5001, its therapy for WT1+ acute myeloid leukemia (AML), are set to kick off in 2021. Richter estimates that peak sales for both candidates could reach $895 million and $806 million, respectively, with data from both also validating “the breadth of editing approaches (knockouts and/or insertions).”If that wasn’t enough, Richter cites the ongoing NVS-led Phase 1/2 OTQ923 sickle cell disease (SCD) trial as a possible upside driver. “While we note the limited economics to NTLA from this program and competitor dynamics with bluebird bio’s (BLUE) LentiGlobin and CRISPR Therapeutics’ (CRSP) CTX001 that are ahead in clinical development, the study should serve as proof-of-concept for the platform. First data could be presented in 2021,” the analyst commented.All of this prompted Richer to initiate coverage with a Buy rating and $33 price target. This target conveys her confidence in NTLA’s ability to climb 50% higher in the next year. (To watch Richter’s track record, click here)Looking at the consensus breakdown, 3 Buys and 2 Holds have been published in the last three months. Therefore, NTLA gets a Moderate Buy consensus rating. Based on the $37.13 average price target, shares could rise 67% in the next year. (See NTLA stock analysis on TipRanks)Vir Biotechnology (VIR)Moving on to another healthcare company, Vir Biotechnology is developing a broad portfolio of product candidates that are designed to combat serious, global infectious diseases in new ways. With it standing at the front of the pack in the COVID-19 monoclonal antibody (mAb) race, it’s no wonder Goldman Sachs likes what it’s seeing.Firm analyst Paul Choi cites a recent data readout from one of VIR’s competitors as reaffirming his confidence. On September 16, Eli Lilly reported interim data from the Phase 2 BLAZE-1 trial evaluating its mAb therapies, LY-CoV555 and LY-CoV016, in mild or moderate COVID-19 patients. The data revealed that treatment with LY-CoV555 led to a roughly 72% reduction in the need for hospitalization, with no safety signals observed.Choi also points out that the results were more “pronounced” in high risk patients (age or BMI) as most study hospitalizations across both groups occurred in patients with these underlying risk factors.While resistant viral variants did appear in 8% of LY-CoV555-treated patients and 6% of patients on placebo, management has stated that competing single or multiple mAb “cocktail” approaches might not be optimized, with viral escape mutants potentially emerging. VIR argues its approach is differentiated given the high barrier to resistance, potent effector function, potential for increased lung tissue concentration and extended half-life.Even though VIR is behind its peers in terms of development timelines, Choi thinks that the company is making substantial progress. VIR recently initiated the Phase 2/3 COMET-ICE study of VIR-7831, its mAb for COVID-19, as a monotherapy (versus a combination approach) in patients with mild or moderate COVID-19. Initial data is set to be released by the end of 2020, with top-line data expected in January. Weighing in on the above, Choi commented, “In the absence of preclinical binding affinity data from LY-CoV555, it is premature to hypothesize on the potential for VIR-7831 to demonstrate improved efficacy vs. the competing antibodies; however, we see the LLY data as establishing proof-of-concept for antibodies in COVID-19 while also setting an attainable bar for future antibody monotherapy/cocktail treatments. Moreover, we view the addressable market for COVID-19 antibodies as significant enough to support several approved therapies in the indication in the near-term.”In line with his optimistic approach, Choi reiterated his Buy rating and $54 price target. Should the 5-star analyst’s thesis play out, a twelve-month gain of 69% could potentially be in the cards. (To watch Choi’s track record, click here)Is the rest of the Street in agreement? The majority of other analysts are. 4 Buys, 1 Hold and 1 Sell have been issued in the last three months, so the word on the Street is that VIR is a Moderate Buy. With the average price target clocking in at $51.67, shares could jump 61% in the next year. (See VIR stock analysis on TipRanks)Peloton Interactive (PTON)Switching gears now, we move on to Peloton Interactive. The company, which offers exercise bikes and remote workout classes, rose to fame at the start of the COVID-19 pandemic. After its fiscal Q4 earnings results blew estimates out of the water, Goldman Sachs believes this stock has more room to run.In the most recent quarter, PTON posted revenue of $607.1 million, beating the $586.2 million consensus estimate and reflecting a 172% year-over-year increase. This is up from growth of 65.6% in the previous quarter. Adjusted EBITDA came in at $143.6 million, ahead of the Street’s $73.5 million call. Management pointed to heightened demand during the COVID-19 crisis and significantly lower marketing spend as the drivers of this strong showing.Goldman Sachs’ Heath Terry tells clients he was especially excited about the Connected Fitness segment’s performance. Connected Fitness product revenue landed at $486 million, up 199% year-over-year, while customer deposits and deferred revenue grew 300% year-over-year. The five-star analyst also highlights the fact that subscriber net adds were 205,000, versus 174,100 net adds in fiscal Q3 2020 and guidance of 154-164,000.As for PTON’s forward-looking guidance, Terry was also impressed. “While the company guided fiscal Q1 2021 and FY21 revenue and adjusted EBITDA well above consensus, given the backlog of demand exiting the June quarter and the 6-8 weeks of deliveries already on order by consumers, we expect this guidance will again prove overly conservative,” he explained.This performance prompted Terry to state, “We continue to believe that Peloton represents a significant long-term opportunity as the company is in the earliest stages of creating new and expanding existing categories of connected fitness products, an opportunity that we believe has been permanently accelerated by the current COVID-19 crisis.”It should be noted that the company faces significant risks going forward. These include new entrants, evolving consumer tastes as well as execution challenges. That being said, Terry’s bullish thesis remains very much intact.Expounding on this, the analyst said, “... we believe that the window of opportunity for any meaningful competitor is rapidly closing, something that, along with the large and expanding addressable market for Peloton’s high ARPU, high margin, extremely low churn subscription business, remains underappreciated by the market, even with the stock’s recent outperformance.”It should come as no surprise, then, that Terry stayed with the bulls. To this end, he kept a Buy rating and $138 price target on the stock. Investors could be pocketing a gain of 53%, should this target be met in the twelve months ahead. (To watch Terry’s track record, click here)In general, other analysts are on the same page. PTON’s Strong Buy consensus rating breaks down into 20 Buys, 2 Holds and 1 Sell. The $112.05 average price target brings the upside potential to 23%. (See PTON stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
(Bloomberg) -- Tesla Inc.’s Elon Musk cast a shadow of uncertainty over the sales prospects of his suppliers in Asia after unveiling a push to lower the cost of batteries for electric vehicles and underscoring the point by signaling that it will eventually start producing its own cells.Shares of LG Chem Ltd. slid as much as 5.5% in Seoul, while Contemporary Amperex Technology Co. dropped 4.7% in Shenzhen and Panasonic Corp. dropped 4.3% in Tokyo. The world’s three top EV battery makers all supply Tesla, according to Bloomberg’s Supply Chain Analysis.The maker of the Model S, X and 3 electric cars will still need to increase battery purchases from the trio but still sees “significant shortages” from 2022 if it doesn’t start producing itself, Chief Executive Officer Musk said in a tweet.Read more: Musk Sets Lofty Goal for $25,000 Model With Tesla-Made BatteriesSpeaking at Tesla’s much-awaited Battery Day event at a plant in Fremont, California, Musk also said the company plans to manufacture a $25,000 car in about three years’ time. The substantial discount compared with the company’s currently cheapest model at $37,990 is to be achieved by halving costs for batteries, the most expensive component in EVs.Atul Goyal, an analyst at Jefferies Japan Ltd., lowered his rating on Panasonic to underperform from hold, saying Musk’s announcements increase the downside risks for the Japanese electronics maker’s unprofitable battery business.“This is likely to put Panasonic (and other suppliers) under pressure to catch up to Tesla’s technology/process and to reduce costs,” he said. “With added pressure to improve efficiency and/or reduce costs, Panasonic may need to step up more R&D and is unlikely to have pricing power, even if Tesla’s in-house cells are not ready to replace Panasonic cells in the immediate term.”Panasonic’s shares are down 10% this year, as the coronavirus has hurt profits across its business lines. Meanwhile, CATL Ltd.’s shares are still up 85% and LG Chem’s have almost doubled on high expectations for Tesla-related business. LG Chem’s stock has dipped recently however on its plan to split off its battery business, snubbing retail investors that had bought the stock on the EV theme.Yayoi Watanabe, a spokeswoman for Panasonic, declined to comment on Musk’s remarks. “We value our relationship with Tesla and look forward to enhancing our partnership,” she said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
When analysts raise their earnings estimates, shares of some of the hardest-hit companies will begin to bounce back.
Aurora Cannabis Inc. (NYSE: ACB) shares plunged over 18% after hours following the release of the company's fourth-quarter earnings results.The Edmonton, Canada-based company reported losing more than CA$3.3 billion ($2.5 billion) in the fiscal year closing Tuesday.On Monday, Jefferies upgraded Aurora from Underperform to Hold. This, along with anticipation for Tuesday's earnings call, caused the cannabis giant's stock to rise, closing Tuesday up 15%. However, excitement fell after the company released its quarterly earnings, causing the stock price to plunge to over 18% after the market close."Aurora has slipped from its top position in Canadian consumer, a market that continues to support material growth and opportunity," admitted recently-appointed CEO Miguel Martin.Martin was appointed earlier this month in replacement of interim CEO and Executive Chairman Michael Singer, and is the third CEO the company had in 2020, after the retirement of Terry Booth in February."My focus is therefore to re-position the Canadian consumer business immediately. We look to expand beyond the value flower segment, leverage our capabilities in science and product innovation and put our effort on a finite number of emerging growth formats," said Martin.View more earnings on ACBAurora's total net revenue of CA$72.1 million ($54.1 million) signified a 5% drop from the previous quarter.Net revenue for consumer cannabis in the recreational market was CA$35.3 million ($26.7 million) dropping 9% from the previous quarter. Medical cannabis net revenue was $32.2 million ($24.2 million), a 4% increase from the prior quarter, attributed to an overall market growth in Canada and Europe.Net loss from continuing operations was CA$1.86 billion ($1.40 billion).The company offered guidance for the first quarter of the following fiscal year. Net revenue is expected to be between CA$60 million and CA$64 million, compared to CA$67.5 million in the fourth quarter of 2020, and will be composed exclusively from cannabis net revenue.The company expects to achieve positive Adjusted EBITDA in the second quarter of 2021.Lead image by Ilona Szentivanyi. Copyright: Benzinga.See more from Benzinga * Ann Arbor Votes To Legalize Psychedelic Plants and Fungi * MindMed Submits Application To Cross-List At NASDAQ * Psychedelics Companies Look To 'Functional Mushrooms' For Opportunities(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Amazon.com Inc. told Echelon Fitness to stop selling an exercise bike that was promoted and branded as a product developed in partnership with the e-commerce giant.Echelon announced the EX-Prime Smart Connect Bike earlier this week and said it was developed “in collaboration with Amazon.” The machine was listed on Amazon’s website for $500, a steep discount to machines offered by Peloton Interactive Inc.“This bike is not an Amazon product or related to Amazon Prime,” an Amazon spokeswoman wrote in an email late Tuesday. “Echelon does not have a formal partnership with Amazon. We are working with Echelon to clarify this in its communications, stop the sale of the product, and change the product branding.”Amazon’s Prime subscription, which offers free shipping and other perks for an annual fee, has been one of the most successful offerings in e-commerce history. Products associated with the program often get a sales boost, especially on Amazon’s website.Echelon didn’t immediately respond to a request for comment. However, the company’s original press release announcing the bike was no longer available online late Tuesday. On Amazon’s website, the product was also listed as “currently unavailable.” Shares of Peloton fell as much as 6.7% early Tuesday on concern about new competition from Amazon. But the stock recovered to be down less than 1% at the close in New York.“Other than a few cosmetic changes, the $500 bike is almost identical to Echelon’s $500 bike at Walmart.com, which has been available at Walmart.com since March and hasn’t had any noticeable impact to Peloton’s growth,” KeyBanc Capital Markets analyst Edward Yruma wrote in a note to investors.(Updates to show Echelon press release no longer available in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Fall kicks off today — and investors are prepping for the S&P; 500 fall slump. But some stocks duck some seasonal damage, including one Warren Buffett loaded up on.
Some experts believe we may have hit "peak gold" production in our pursuit of the precious metal.
Cash is king ahead of a highly uncertain presidential election in November, new findings out of Morgan Stanley suggest.
Estate planning goes beyond drafting a will. Use this pre-death checklist to account for your assets and ensure they are dispersed as you wish,
(Bloomberg) -- Gold could hit a record before the year-end, aided in part by the risks surrounding the U.S. presidential election, according to Citigroup Inc.Uncertainty over the contest and delays about the outcome may “be under-appreciated by precious metals markets,” analysts including Aakash Doshi said in a quarterly commodities outlook. The bank’s forecast implies a surge of more than $200 for bullion futures from current levels.Gold rallied to an all-time high last month as investors sought havens amid the coronavirus pandemic, but prices have slipped back since then. Citi’s outlook reflects rising investor concern about the battle for the White House that pits incumbent Donald Trump against challenger Joe Biden. The already complex race has acquired added tension with Trump’s plan to speedily replace the late Justice Ruth Bader Ginsburg on the U.S. Supreme Court.The election “could be an extraordinary catalyst for gold flat price and volatility skew late in the fourth quarter, even though historically there is no clear pattern for gold trading or price volatility into and after U.S. elections,” Citi said,. “That is one reason why we expect gold prices to hit fresh records before year-end.”Futures traded at $1,894.20 an ounce on the Comex at 12:36 p.m. in Singapore, with prices losing ground this week on a rising dollar. Most-active prices set a record $2,089.20 on Aug. 7. In addition to the election, Citi is very positive on gold amid low interest rates, saying it’s in the middle of a bull cycle.Election day is Nov. 3.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Chinese electric vehicle maker (XPEV) got its first analyst rating Tuesday—a Buy from J.P. Morgan analyst Nick Lai. The rating sent Xpeng stock higher in Tuesday trading. Analysts based in Hong Kong and elsewhere in Asia covering Li, Xpeng, and NIO now have, in total, 17 Buy ratings and 9 non-Buy ratings.
Electric car maker Nikola (NKLA) has been grabbing headlines for all the wrong reasons recently. Shares took a 19% tumble on Monday after the company announced that its founder and chairman, Trevor Milton, had resigned.Following a September 10 report, in which short-seller Hindenburg Research alleged Milton had made fabricated claims about NKLA technology, Milton found himself in hot water.Weighing in on this development for RBC, analyst Joseph Spak wrote, “We believe this was a hard, but necessary step for Nikola in wake of allegations against Milton raised by a short-seller report and SEC investigation. In our view, Nikola’s promise was always further out and mostly tied to opportunity they have with fuel cell truck leases and hydrogen infrastructure build-out. This opportunity while large, is not without challenges/risks.”Spak points out that many of the issues raised in the report could be from earlier days and might not be a reflection of where NKLA is now, but notes “they have undoubtedly raised a cloud over NKLA.” However, the analyst makes a point to clear up misconceptions.“NKLA relying on partners for the commercial trucks, hydrogen, Badger, etc., which had always been part of their plan. The comparison to a more vertically-integrated TSLA was never apt (aside from both doing alt. propulsion, biz models quite different) and many were too focused on Badger (much smaller opp). And to be fair, many OEMs (especially in CVs) also rely on other partners for key components,” Spak explained.If Milton had stayed on, it might have added extra uncertainty with respect to customers and partners, so says Spak. Further, its strategy of selling “routes” via fuel cell truck leases, and helping solve problems associated with hydrogen infrastructure build-out made NKLA a stand-out, in Spak’s opinion. “If they're able to succeed, this could potentially create a first mover advantage and a feedback loop allowing them to sell more trucks. As they built out series stations along A to B dedicated routes, they would also slowly be building a larger hydrogen infrastructure to leverage,” he added.Spak does, however, think “Nikola’s stock will be in ‘penalty box’ for a while as they look to rebuild credibility with Street.” As a result, he slashed the price target from $49 to $21, to go along with his Sector Perform rating. Should this target be met in the twelve months ahead, it would reflect a 26% decline. (To watch Spak’s track record, click here)Looking at the consensus breakdown, 2 Buys and 3 Holds have been published in the last three months. As a result, NKLA gets a Moderate Buy consensus rating. The $43 average price target is more aggressive than Spak’s and implies 51% upside potential from current levels. (See NKLA stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
When looking for the best artificial intelligence stocks to buy, identify companies using AI technology to improve products or gain a strategic edge, such as Microsoft, Netflix and Nvidia.
U.S. President Donald Trump on Monday said he was rebuffed when he asked officials to adjust the exchange rate of the dollar to counteract what he described as repeated currency manipulation by China of its yuan. Trump told thousands of supporters at a political rally in Dayton, Ohio, that his policies were saving jobs in the political battleground state after years of inaction to confront China's aggressive behavior in global markets. The Republican president, who is seeking reelection to a second term in the Nov. 3 national poll, repeated his claim - which China denies - that Beijing deliberately changes the value of its currency to gain competitive advantage in global markets.
Top chip stock Advanced Micro Devices, featured in today's IBD 50 Stocks To Watch, is setting up a new potential buy point.