Every year in early autumn Apple holds its event where it presents new iPhones, Apple Watches, and iPads. This year wasn’t an exclusion. But yesterday’s presentation didn’t result in Apple stock growth, and here’s why.
Tesla and Google made the day
Tesla is flying to the moon
Tesla stock surged by more than 20% on Monday and closed at $780. Analyst at Argus Research increased forecast for Tesla to $808 citing continued revenue growth from the legacy Model S and Model X, as well as strong demand for the new Model 3. The company’s quarterly earnings surpassed expectations and it set a goal to “comfortably” sell more than 500,000 vehicles this year. Moreover, Tesla reported that production of its next vehicle, a compact SUV called the Model Y, was ahead of schedule.
Although usually, the price tends to correct down after an extensive growth like that, it might be difficult to pinpoint the exact moment when investors decide to take a breath making the buying frenzy pause. The level of $800 is a psychologically attractive number and may draw the price to it. Here some players may succumb to profit taking. At the same time, earlier, the level of $700 also looked like an impressive obstacle and yet it has failed to stop the carmaker’s surge. So, will it be too bold to say that the stock is targeting $1000? Probably yes, but remember that everything is possible in the market and Elon Musk may be a kind of wizard after all.
Google disappointed by not by much
Alphabet Inc., the parent company of Google, has delivered its earnings report. The financial numbers for Q4 disappointed: the Q4 revenue was $790 million less the forecast mainly because of weak hardware sales. However, the dip of the price was only temporary. The giant’s core segments are doing very well, so buyers quickly rushed in to pick up the stock. Google’s overall revenue increased by 19% in 2019 to $162 billion compared to $137 billion in 2018 – isn’t that impressive?
One of the major changes what that Google has revealed the YouTube revenue, which used to be a top secret before. It turned out that the video site brought in $15 billion last year. That’s below analysts’ estimated that went from $16 billion to $25 billion. Still, no one has any doubts that YouTube is going to bring plenty of cash in the future. That’s why the stock keeps performing so well.
There are more stocks that will make big moves this week, so follow the news.
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