Tesla Bull Says EV Maker Faces ‘Code Red’ Situation
54 minutes ago
Tesla (TSLA) shares sank Monday morning after long-time bull Dan Ives of Wedbush Securities warned the electric vehicle (EV) maker faced a “code red situation” if CEO Elon Musk didn’t back away from his service in the Trump administration and refocus on Tesla.
Ives wrote in a note to clients that Musk is too distracted by his efforts to cut federal spending by leading the Department of Government Efficiency, or DOGE. He said Musk “needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time.”
Ives pointed out that he remains bullish on the stock, and believes that Tesla and Nvidia (NVDA) are “two of the most disruptive technology companies on the globe over the coming years.” However, Ives says that won’t happen without Musk giving his full attention to the firm. He added that “we are now at a major crossroads for the Tesla story.” The automaker is scheduled to release its quarterly results after the close of trading Tuesday.
Earlier this month, Ives slashed the price target on Tesla to $315 from $550, citing the U.S.-China trade spat plus the backlash against the company over Musk’s involvement in the government’s cost-reduction moves. He noted that it was a “very bad thing” that Tesla has “become a political symbol globally.”
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Tesla shares were down 7% in late-morning trading, pushing their year-to-date decline to about 45%.
Capital One, Discover Shares Rise as Merger Moves Closer
1 hr 30 min ago
Shares of Capital One (COF) and Discover (DFS) rose early Monday, the first trading session since federal regulators on Friday approved their planned multibillion-dollar merger.
Capital One’s shares were up slightly in recent trading, while Discover’s were about 2% higher, after gaining nearly 7% early in the session. Regulators on Friday approved Capital One’s intended purchase of Discover, a deal that would create the country’s biggest credit-card company.
The approval came from the Federal Reserve and Office of the Comptroller of the Currency; the Justice Department is not expected to oppose the deal. Some analysts had suggested before the news that the government might not support the merger, so investor relief is likely to be driving some of the market’s response today.
The news may be seen as indicating a friendly regulatory environment for dealmaking, a condition generally expected by investors after the re-election of President Donald Trump.
The Capital One-Discover deal, announced earlier last year, was at the time valued at more than $35 billion.
Nvidia Extends Decline on US-China Trade Spat
2 hr 35 min ago
Nvidia (NVDA) shares headed lower for a third straight session Monday on continuing concerns the AI chipmaker could face a major economic hit from the trade fight between the U.S. and China.
CEO Jensen Huang talked about the potential impact of new Trump administration tariffs in a visit to China last week, telling China-owned CCTV, “The increased restrictions have impacted our company significantly.” Huang pointed out the importance of China to Nvidia’s business, and that the company “will continue to make significant efforts to optimize our products to comply with regulations and continue serving the Chinese market.”
Franck Robichon / Pool / AFP / Getty Images
According to reports, Huang met with several government officials, including Ren Hongbin, head of the China Council for the Promotion of International Trade, as well as Liang Wenfeng, founder of Chinese AI research firm DeepSeek, which stunned the tech world earlier this year when it said it produced an AI product at a much lower cost than traditional models.
Also last week, Nvidia reported in a regulatory filing that it was advised by U.S. officials that it would need a license to export its key H20 AI chips to China, and that requirement could result in up to $5.5 billion in charges in the first quarter.4
Nvidia shares were down more than 5% in recent trading. They have lost nearly 30% of their value so far this year.
UnitedHealth Levels to Watch After Selloff
2 hr 57 min ago
UnitedHealth Group (UNH) shares lost ground in early trading Monday after logging their worst daily decline since 1998 as the healthcare giant cut its full-year profit forecast.
The company, which cited higher-than-expected medical costs for the downward revision, has faced challenges in recent years from increasing demand for healthcare services under its government-assisted Medicare plans for aging adults and members with disabilities.
UnitedHealth shares fell 22% on Thursday, ahead of a day off from trading as U.S. markets were closed in commemoration of Good Friday. The stock was down another 4% at around $436 this morning.
A recent recovery in UnitedHealth shares toward their all-time high (ATH) ended abruptly last week, with the price staging a decisive close below the closely watched 200-week moving average. Importantly, the sell-off occurred on above-average volume, indicating conviction selling by larger market participants, such as institutional investors and hedge funds.
Moreover, the drop also thrust the relative strength index (RSI) below the 50 threshold, signaling accelerating selling momentum.
Investors should watch crucial support levels on UnitedHealth’s chart around $439 and $389, while also monitoring key overhead areas near $550 and $606.
Read the full technical analysis piece here.
Netflix Rises as Analysts Lift Price Targets After Earnings
3 hr 29 min ago
Netflix (NFLX) shares rose in premarket trading Monday after several analysts raised their price targets for the streaming giant’s stock.
Netflix reported better-than-expected results after the bell on Thursday, and markets were closed for Good Friday. Several analysts wrote in notes Friday that Netflix’s ability to thrive in an uncertain economy is impressive.
Analysts from Morgan Stanley and Wedbush lifted their price targets to $1,200 from $1,150, while Piper Sandler analysts also made a $50 bump to $1,150. KeyBanc, Goldman Sachs, and Deutsche Bank analysts also raised their targets, to $1,070, $1,000, and $900, respectively, from $1,000, $955, and $875.
Netflix shares were up 2.2% at $994 ahead of the bell on Monday.
JPMorgan analysts made one of the biggest moves, retaining an “overweight” rating and raising their price target to $1,150 from $1,025. The analysts said that the streaming giant “continues to play offense in its business, while the stock remains defensive in the uncertain environment.”
Netflix’s cheapest ad-supported subscription tier makes it “widely accessible,” the analysts said, noting that the streamer’s management highlighted the low-priced tier as something that could prove resilient in an economic downturn or recession.
Analysts tracked by Visible Alpha are divided between 15 “buy” ratings and four “hold” ratings, with an average price target of about $1,125.
Major Stock Index Futures Point to Lower Open
4 hr 9 min ago
Futures tied to the Dow Jones Industrial Average were down 0.8%.
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S&P 500 futures were off 1.1%.
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Nasdaq 100 futures dropped 1.4%.
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Source: Dow Jones Today: Stocks Plunge as Tariff Concerns Persist, Trump Lambastes Fed Chair
