New Street Research downgrades Tesla
New Street Research managing partner Pierre Ferragu discusses his outlook for Tesla shares.
Red-hot Tesla Inc. and Apple Inc. shares rallied to record highs Monday as investors scooped them up at greatly reduced prices following their stock splits.
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Apple shares, which split 4-for-1, climbed as much as 4.2% to $130.05. The split was the fifth since Apple became a publicly traded company in 1980.
Tesla’s stock, meanwhile, rallied as much as 12% in the first trading day after the 5-for-1 stock split, its first in the more than 10 years since its June 2010 initial public offering.
Shares of both companies, which have had banner years, were off their best levels of the session.
Tesla’s share price had surged 435% this year through Friday, fueled by strong quarterly results amid the COVID-19 pandemic.
The Palo Alto-based electric-car maker in the three months through June completed its fourth straight quarter of profitability, clearing the final necessary hurdle for entry into the S&P 500 amid increasing enthusiasm about its business in China and the upcoming Battery Day event.
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Meanwhile, shares of Cupertino-Calif.-based iPhone maker Apple were up 70% year-to-date through Friday. Apple earlier this month became the first U.S. company to reach a $2 trillion market capitalization after reporting strong results in the April through June period.
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