Market Blog

Tesla Motors Inc and Square Inc may be good long-term investments

TSLA – Tesla Motors, Inc., develops, manufactures and sells electric vehicles and components. With Credit Suisse restating their positive rating on TSLA, the sentiments are expected to be bullish on the day Tesla unveils its Mass Market product – The Model 3.

TSLA – Tesla Motors, Inc.

Fundamentals Previously closed at 226.89
Day’s high 226.50
Day’s low 235.50
P/E ratio NA
EPS -6.90

 

Analysts opinion Most analysts maintain a “Strong Buy” rating for the stock. Tesla is expected to unveil its Model 3 today, and many potential buyers have lined up for pre-orders. Model 3 is expected to be delivered by 2017. Credit Suisse has announced today that it restates the positive rating for the stock. Several financial Institutions including Norges Bank, Royal London Asset Management Ltd and Perigon Wealth Management LLC have increased their stake in Tesla.
However, there are a few concerns regarding Tesla. Given the track record of Tesla regarding car deliveries, most analysts believe that the Model 3 deliveries for pre-orders will take place only by late 2018. There is also increasing concerns regarding the pricing. Tesla is in negative territory with respect to profits, so managing to deliver model 3 at the promised rate of $35,000 would be highly challenging to the firm. Also, Tesla being a niche player, expansion into a mass-market is a risky venture.
Sentiments Investor sentiments seem to be positive with the upcoming release of Model 3. If Tesla can pull this off positively, its positioning in the market will see a huge change. It will become an environment friendly and mass-market company and a trend-setter in the auto industry which would be the icing on the cake.
Social Media Pulse The stock has 50% lower chatter than usual.

 

SQ – Square, Inc., provides services related to payment processing, point-of-sale, financial, and marketing. Yesterday, Square hit a new 52-week high, and is expected to fall back today.

SQ – Square, Inc

Fundamentals Previously closed at 14.95
Day’s high 14.64
Day’s low 14.86
P/E ratio NA
EPS -0.64

 

Analyst opinion Square, Inc was downgraded by Monness Crespi and Hardt from a ‘Buy’rating to a ‘Neutral’ rating. SQ opened higher than its 50 day and 200 day moving averages yesterday, and saw new 52-week high. Several companies including American centuries, Inc, Morgan Stanley and Barometer Capital Management Inc., purchased or increased their stakes in the company. SQ is expected to fall back in the short term, and is considered a bullish investment for a medium – long term.
Sentiments The sentiment for SQ seem to be bearish for today, however, it is expected to be bullish in the near future.
Social Media Pulse The stock has 16% lower social chatter than usual.

 


 

Picture Credits – Business Insider

Disclaimer: This blog contains an aggregated view of analysts and opinions by the author. Do not consider this as financial advice. See http://stockal.com/legalities/

 

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