Ideas for trading US stocks on July 26-30
This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
Tesla’s earnings missed forecast
What happened to Tesla?
The electric carmaker reported mixed fourth-quarter financial results on Wednesday. Earnings per share (EPS) accounted for 80 cents versus the forecast of $1.04 cents. The company’s revenue of $10.74 billion surpassed the estimate of $10.47 billion. Tesla said that it expected the pace of growth to pick up in 2021. Shares fell by more than 4% on the news.
Why is it important?
The year 2020 has been extremely positive for Elon Musk’s company. The stock has actually gained more than 740%. It was the second year in a row of positive cash flow and Tesla has finally joined S&P 500.
Tesla deliveries rose by 36% during the pandemic year, while other major carmakers such as Ford, General Motors, and Fiat Chrysler reported full-year declines in auto sales.
What does it mean for traders?
Many traders and investors think highly of the company and expect it to continue beating expectations. If Tesla keeps delivering, this will lead the price to yet new highs. Joe Biden is more favorable towards clean energy companies and electric car manufacturers than Donald Trump has been. In addition, Tesla has strong facilities in China (Shanghai Gigafactory) that has contributed to the recent growth. As a result, the company’s aspirations for faster growth look well grounded.
For now, however, it’s necessary to understand that much of a positive outlook is already in the price. The average selling price fell 11% as the sale mixed shifted to the cheaper Model 3 and Y vs. the Model S and X. The company is going to face fiercer competition and it failed to provide a clear target for 2021 vehicle deliveries.
Pay close attention to the weekly chart: after a series of ‘inside bar’ patterns, the price may form a ‘Fakey’. This would send it to a correction towards $800.
You can also trade Tesla stock with FBS Trader mobile app. Remember that stock trading starts as the US session begins (at 16:30 MT time).
Don't know how to trade stocks? Here are some simple steps.
- First of all, be sure you’ve downloaded Metatrader 5 or FBS Trader app. FBS allows you to trade stocks only through this software.
- Open the MT5 account in your personal area (an account in FBS Trader).
- Start trading!
Similar
Why Virgin Galactic Dropped after Branson’s Flight
Virgin Galactic’s Branson flew to space, but the stock of Virgin Galactic (SPCE) dropped. Why?
Virgin Galactic Wins Space Race
Virgin Galactic (SPCE) will launch Richard Branson to space on July 11, aiming to beat Jeff Bezos.
Latest news
Weak USD, Gold and China's Stocks Recover
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
How Much Did the US Economy Grow in Q2?
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Gold and Bitcoin Rise, Fed is Eyed
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
Deposit with your local payment systems
