Amazon wins over one of its last remaining Wall Street skeptics, which just slapped a 'buy' rating on the stock and expects it to surge 15% in the next year
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Amazon shares were upgraded to "outperform" from "market perform" by Bernstein on Tuesday, adding to the list of analysts bullish toward the e-commerce giant. The coronavirus pandemic boosted growth in online retail, digital advertising, and cloud computing, and Amazon is a "primary beneficiary across all three revenue pools," analyst Mark Shmulik wrote in a note to clients. After the upgrade, 52 Wall Street analysts rate Amazon as "buy." Only two maintain a "hold" rating on the shares, and just one analyst rates the stock "sell." Shmulik reiterated a $3,400 price target for Amazon stock, implying a 15% rally over the next 12 months. The company's recent tumble from record highs creates "an attractive entry point," he added. Watch Amazon trade live here.
The coronavirus pandemic and resulting lockdowns marked a permanent inflection point for e-commerce trends. Bernstein views Amazon as a top beneficiary. Analyst Mark Shmulik upgraded the company's shares to "outperform" from "market perform" on Tuesday, citing internal investments and sector dominance that boosted sales through the quarantine period. Bernstein "undervalued the power of being the sole e-commerce demand aggregator," and Amazon is positioned to strengthen its dominance in the rising sector, the analyst wrote in a note to clients. "COVID has pulled forward secular trends, from e-commerce to digital advertising and cloud, with Amazon as a primary beneficiary across all three revenue pools," Shmulik said. "Amazon has executed incredibly well, pivoting its operations and inventory to in-demand verticals — with flexibility and speed we didn't expect." The firm reiterated its price target of $3,400 per share, implying a 15% surge over the next 12 months from Monday's close. Amazon shares jumped as much as 2.7% following the upgrade. Read more: A fund manager who's returned 49% to investors this year with incredible market timing explains why the weakness in stocks is going to get worse Shmulik was among the last Wall Street analysts to avoid recommending Amazon shares until his Tuesday change-of-heart. The e-commerce giant has 52 buy ratings after Bernstein's upgrade. Only two analysts recommend holding the stock at current levels, and just one rates the stock "sell." The Bernstein analyst admitted to missing a chance to upgrade shares in March. With shares sitting roughly 16% below their record high after Monday's session, Shmulik recommended investors buy at temporarily lower levels before his forecasted rally kicks off. "We've been watching the fundamental story improve from the sidelines, waiting for a better entry point to get involved," he wrote, adding the stock's recent sell-off creates "an attractive entry point." Amazon traded at $3,030.20 per share as of 10:10 a.m. ET Tuesday, up 63% year-to-date. Now read more markets coverage from Markets Insider and Business Insider: Fed's Powell says US still faces uncertain and uneven economic recovery after 'marked improvement' US government debt will reach nearly twice economy's size in 2050, Congressional Budget Office says US Investing Championship hopeful Tomas Claro hauled in a 409.1% return through August. Here's the unique trading strategy he's leveraging — and 3 stocks he's holding right now. Join the conversation about this story » NOW WATCH: A cleaning expert reveals her 3-step method for cleaning your entire home quickly
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Summary List Placement Nikola tanked as much as 24% in Thursday trading after Wedbush analysts led...Summary List Placement Nikola tanked as much as 24% in Thursday trading after Wedbush analysts led by Dan Ives gave the automaker its first "sell" rating. The team also lowered its price target for Nikola shares to $15 from $45, implying a 29% drop over the next 12 months from Wednesday's close. Wedbush cited founder Trevor Milton's abrupt exit from the company on Monday and execution risks for the downgrade. Nikola stock has traded with sharp volatility through September since the short-selling firm Hindenburg Research accused the company of misleading investors and lying about its vehicles' capabilities. Watch Nikola trade live here. Nikola shares tanked as much as 24% on Thursday after Wedbush slapped the firm with its first "sell" rating and forecasted a massive drop from Wednesday's close. After a "Twilight Zone-like few weeks" for the electric-vehicle stock, Wedbush said it sees risks skewing to the downside for Nikola shareholders. Analysts led by Dan Ives lowered their rating on the shares to "underperform" from "neutral," signaling an about-face on Wall Street as firms reset their expectations for the Tesla competitor. Ives also lowered the firm's price target for Nikola to $15 from $45, implying a drop of 29% over the next 12 months from Wednesday's close. Read more: A Wall Street expert breaks down why these are the best 6 stocks to own for a second coronavirus wave in addition to the FAANMGs Nikola shares retraced some losses through the morning. Wedbush highlighted two reasons for its downgrade. Founder Trevor Milton's abrupt departure from the company on Monday removes a "visionary, architect, and internal/external force" from Nikola and "leaves a huge void that is hard to replace," Ives wrote. The exit came after the short-selling firm Hindenburg Research published a note earlier this month accusing Nikola of fraud. Milton and the automaker rebutted the claims, but shares continued to sink as the controversy led to a Securities and Exchange Commission investigation and scared off investors. With Nikola still in its early growth stage, the allegations and related responses stand to weigh on Nikola shares for some time, Wedbush said. "The recent questions surrounding the Nikola story raised by the bears will be a dark cloud over the stock until answered, especially with no fundamental or delivery catalysts in the near-term," the analysts added. Read more: BANK OF AMERICA: Hedge funds just made a decisive shift into corners of the market that benefit from a recovery — and these 9 sectors are the best-suited to take advantage of it Wedbush also pointed to Tesla's Battery Day as a disruption to Nikola's path forward. Elon Musk's company revealed "eye popping battery innovations" at the Tuesday event, and the new technology "throws a wrench" in the investment potential of Nikola's hydrogen-fuel-cell vehicles, Ives wrote. Nikola's partnership with General Motors and promising order book still present opportunity, Wedbush said. But the automaker's lack of revenue, hefty cash burn, and competition in the electric-trucking sector drove the firm's "very cautious view" of the volatile shares. Nikola closed at $21.15 per share on Wednesday. Now read more markets coverage from Markets Insider and Business Insider: A Wall Street expert explains why the market's ongoing turbulence could end within 2 weeks — and pinpoints 3 stocks to grab cheaper now as big investors buy the dip Boosted unemployment benefits didn't incentivize Americans to stay jobless, Fed study shows — diminishing one of Republicans' key arguments against extra payments JPMorgan to pay a record $1 billion to settle market-manipulation charges, report says Join the conversation about this story » NOW WATCH: What makes 'Parasite' so shocking is the twist that happens in a 10-minute sequence
Summary List Placement Tesla shares slid as much as 7% on Wednesday after the automaker's "Battery...Summary List Placement Tesla shares slid as much as 7% on Wednesday after the automaker's "Battery Day" event missed expectations and led some to question the company's lofty stock price. CEO Elon Musk unveiled new manufacturing processes on Tuesday set to slash Tesla's battery costs and allow for the production of a $25,000 electric car in the next three years. Yet the event lacked any news of the million-mile battery "widely expected" by Wall Street and Tesla shareholders, Wedbush analyst Dan Ives said. Robert W. Baird analyst Ben Kallo knocked the company for a "lack of upcoming catalysts" and showed concern for how demand will hold up amid the coronavirus recession. Watch Tesla trade live here. Tesla tumbled as much as 7% on Wednesday after the company's highly anticipated "Battery Day" event failed to deliver and led some analysts to question the stock's 2020 rally. CEO Elon Musk took the stage near the company's Fremont, California factory to lay out several new innovations for Tesla's manufacturing and battery production processes. The firm announced plans to produce a $25,000 electric vehicle in the next three years and revealed a new top-of-the-line specification for its Model S sedan. Yet the nearly three-hour event lacked some announcements sought by Wall Street analysts. Those hoping for the reveal of a million-mile battery were let down. The breakthrough "was widely expected" from the event, Wedbush analyst Dan Ives said in a note. Read more: Buy these 15 stocks right now before they rally higher, says the Morgan Stanley equity chief who nailed his call for a short-term market meltdown Still, cost savings from the firm's new battery-cell technology "remains a foundational goal" that should lift Tesla above its competition, he added. Other firms pointed to Tesla's lack of surprises as a letdown. The company's valuation already rested on expectations of cost-cutting and production innovations, Robert W. Baird analyst Ben Kallo wrote in a note seen by Bloomberg. The Tuesday event ended without any near-term catalysts, he added, leaving investors and analysts "cautious about demand given the recessionary environment." Read more: A Wall Street expert explains why the market's ongoing turbulence could end within 2 weeks — and pinpoints 3 stocks to grab cheaper now as big investors buy the dip Tesla closed at $424.23 on Tuesday, up roughly 411% year-to-date. The company rocketed higher through the summer on a wave of retail-investor interest, leaving some on Wall Street wondering if the company's share price sat at unsustainable levels. The electric car company has 24 "buy" ratings, 40 "neutral" ratings, and 26 "sell" ratings from analysts. Now read more markets coverage from Markets Insider and Business Insider: Anthony Scaramucci told us his contrarian views on the risks investors face after the elections regardless of who wins — and shared how his $7.5 billion SkyBridge Capital is navigating the market's volatility Nike leaps 16% after crushing earnings expectations and accelerating online-sales shift S&P 500 snaps 4-day losing streak as investors rush back to tech giantsJoin the conversation about this story » NOW WATCH: Why Pikes Peak is the most dangerous racetrack in America
Walmart reported quarterly earnings on Tuesday that crushed Wall Street's estimates, boosted by a huge surge...Walmart reported quarterly earnings on Tuesday that crushed Wall Street's estimates, boosted by a huge surge in ecommerce. Shares of Walmart climbed as much as 6% in premarket trading Tuesday before paring those gains to trade lower. Walmart's ecommerce sales soared 97% in the second quarter, as the coronavirus pandemic boosted online shopping. Watch Walmart trade live on Markets Insider. Read more on Business Insider. Shares of Walmart surged as much as 6% in premarket trading Tuesday before paring those gains to trade lower. The whipsaw in trading comes after the company reported quarterly earnings that crushed Wall Street's estimates. Here are the key numbers: Adjusted earnings per share: $1.56 reported, versus $1.25 (expected) Revenue: $137.74 billion reported, versus $135.5 billion (expected) In addition to the revenue beat, Walmart's ecommerce sales soared 97% in the second quarter, as the coronavirus pandemic boosted online shopping. US same-store sales also grew by 9.3% in the quarter, driven by general merchandise and food purchases. Sam's Club had a solid quarter, with same-store sales up 13%, even though reduced tobacco sales weighed on the figure, the company said in a press release. Ecommerce at Sam's jumped 39%, and growth in membership was the highest quarterly increase in more than five years. Operating expenses as a percentage of net sales increased, largely due to spending the company has done to address COVID-19. Walmart has hired hundreds of thousands of workers amid the pandemic to stock shelves, clean its stores, and fulfill online orders. The big-box retailer did not provide guidance for the rest of the year, given the uncertainty of the pandemic. It first withdrew its guidance in the first quarter. Walmart has gained 14% year-to-date through Monday's close. Join the conversation about this story » NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid