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Buy 1 stock, sell 1 when markets open: Tesla, Robinhood

Wall Street stocks finished lower on Friday, but the benchmark was still posting a weekly gain as disappointing monthly US data failed to dampen risk appetite.

The coming week will be given the start of the third quarter reporting season, with names like JPMorgan Chase (NYSE :), Bank of America (NYSE :), Citigroup (NYSE :), Wells Fargo (NYSE :), Goldman Sachs (NYSE :), Morgan Stanley (NYSE :), and Delta Air Lines (NYSE 🙂 all announce their latest financial results.

In addition, important economic data, including current and figures, are also on the program this week.

Regardless of which direction the market is headed, below we highlight one stock that is likely to be in demand in the coming days and another that could see new losses.

Remember, however, that our time frame is only for the coming week.

Stock to buy: Tesla

Tesla (NASDAQ:) – Shares are likely to see increased buying activity in the coming week after bullish comments from CEO Elon Musk at a festival in the electric vehicle maker’s new factory near Berlin over the weekend.

Musk said in front of a cheering audience of around 9,000 people that he expected to deliver the first vehicles from Tesla’s new Berlin plant as early as December. He added that volume production would be about 5,000, “but hopefully 10,000” vehicles per week, and batteries would be manufactured at the site in large numbers by the end of next year.

In addition, he said he hoped the plant would build Tesla’s proposed trucks in the future. However, he warned that volume production would take longer.

Meanwhile, Musk tweeted on Saturday that Tesla will begin rolling out its Full Self-Driving (FSD) Beta 10.2 software either on Sunday or Monday for more drivers after it was released late last week due to last-minute concerns about the build was moved.

TSLA daily chart

TSLA stock closed at $ 785.49 on Friday, bringing the EV company, which recently announced plans to move its headquarters from Palo Alto, California’s Silicon Valley, to Austin, Texas, a market cap of 777.6 billion US dollar a.

According to recent reviews, Tesla is the world’s largest automaker, bigger than names like Toyota (NYSE :), Daimler (OTC :), General Motors (NYSE :), Honda (NYSE :), and Ford (NYSE :).

After rising more than 740% in 2020, TSLA stock – which hit an all-time high of $ 900 on January 25, before an aggressive valuation re-rating hit the entire EV sector – is only down 11 in 2021 % gone up.

Tesla is expected to release its third quarter financial results after closing its US markets on Wednesday, October 20th. Consensus expectations are that the EV pioneer will post earnings of $ 1.44 per share, an improvement of nearly 90% over the same period last year. Revenue is expected to grow 52% year over year to a record high of $ 13.3 billion, fueled by strong shipments.

Stock to Dump: Robinhood Markets

Robinhood Markets (NASDAQ 🙂 stock is likely to have another tough week as investors continue to worry about the negative impact of several factors plaguing the popular trading platform.

The latest negative news came after the financial services firm warned in a government filing late Friday that a potential SEC interference in a broker-trading company payment arrangement known as Payment For Order Flow (PFOF) posed risk to its core could company.

The practice of brokerage firms receiving compensation for routing orders to various parties to execute trades makes up a significant portion of Robinhood’s revenue. Robinhood also said possible regulation of cryptocurrency trading and digital currency markets – which accounted for 41% of sales in the second quarter – could be another cause for concern.

To add to the gloomy sentiment, the brokerage firm said in the amended filing that it will seek to expedite early-investor approval for the sale of large blocks of shares.

HOOD daily chart

HOOD stock, which traded at $ 38 on the New York Stock Exchange after the company’s hyped initial public offering in late July, ended at $ 41.78 on Friday, more than 50% off its all-time high of $ 84.12 posted on Friday Reached August 4th Currently, the Menlo Park, California-based exchange trading platform has a market capitalization of $ 35.9 billion.

Robinhood is next to report profits after the US market closed on November 17th.

Consensus claims a loss of $ 0.63 per share for the third quarter on sales of $ 423 million. The company reported $ 2.16 per share loss from $ 565 million in the second quarter and benefited from a surge in crypto trading.

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