Tesla took it on the chin when it reported earnings. Better-than-expected on the top and bottom line. But its second quarter outlook kept the stock going in reverse- adding to recent pain. S&P Capital IQ's Efraim Levy has a neutral rating on Tesla:
Higher interest rates won't cause shares of General Motors or Ford to stall in 2014, says Efraim Levy, Equity Analyst at S&P Capital IQ. However, he does caution that Tesla's stock is overvalued heading into the new year.
June was a hard act to follow for auto sales. Sales at Ford and Chrysler rose 11 percent from a year ago, GM sales rose 16 percent. All three posted their best month since 2006, though ambitious expectations were for even more. Demand for higher priced and higher profit margin pickup trucks remained strong for a second straight month. Efraim Levy of S&P Capital IQ says that's thanks to the housing boom.
TheStreet's Jim Cramer says the stock market is having a "fulcrum" day with bad news. Citigroup's settlement is more negative news for banks, but if banks hold up, the largest component of the S&P 500 can do OK. Cramer is also watching Tesla after it was slammed by Barclays, saying the stock has peaked.
Facebook's stellar results - putting a big smile on investors faces. The stock hitting record highs in after hours trading. Shares have nearly tripled over the last year. Earnings per share of 42 cents beating forecasts, as did revenues up a whopping 61 percent. The key metric: they are making more revenue per user says- S&P Capital IQ's Scott Kessler:
Tesla reports earnings after the close today and with the stock down 30%, there might be a temptation to get caught up in how closely the company comes to Wall Street’s forecasts for the quarter. According to the analysts tracked by Yahoo Finance, Those predictions are looking for $700 million in revenue, up 24% from last year, and earnings of 10 cents a share.
Old GM hurt the new GM. The massive recalls of millions of cars slammed General Motor's results in the latest quarter, as earnings slid 88 percent. But the automaker managed to eke out a profit and boost sales. And CEO Mary Barra said GM hasn't seen what she called a "meaningful impact" from the negative image stemming from the recalls.
Tesla Motors did not disappoint investors as it delivered yet another set of solid results. During the quarter, the company’s revenues stood at $620.5 million, up from $615.2 million in the fourth quarter. The net income stood at -$50 million, or a loss of 40 cents a share. The automaker produced 7,535 Model S vehicles and delivered a total of 6,457 vehicles, outpacing its own guidance.
All eyes will be on Tesla when the automaker reports quarterly results after the close on Wednesday. The stock hit a new closing high of $203.70 on Tuesday on reports of a meeting between Tesla CEO Elon Musk and a banker from Apple's mergers and acquisitions team last year... and one analyst thinks it's going even higher.