Tesla Stock News and Forecast: TSLA stock suffers as Twitter earnings and US GDP drop
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UPGRADE- TWTR stock rallies 1% after earnings.
- Tesla (TSLA) stock is also recovering after a Twitter-led collapse.
- Twitter is still a long way short of Elon Musk's $54.20 bid.
Twitter (TWTR) stock bounced a bit on Thursday after it reported earnings before the market opened. The release was slightly less significant than it otherwise might have been with Elon Musk's takeover offer still the dominant feature. Despite the $54.20 offer price TWTR stock remains some 10% below this level, which is a clear sign of the market's lack of faith in the deal getting across the finish line.
Twitter (TWTR) stock news: Revenues miss estimates
Twitter reported earnings per share (EPS) of $0.90 which beat the $0.87 estimate. Revenue though missed slightly, $1.2 billion versus the $1.22 billion estimate. Stock-based compensation rose 60% on the year and perhaps Elon Musk has this in his sights. Overall expenses at $1.33 billion were up about a third in the last year. Daily active users (DAU's) hit 229 million an increase of 16% versus last year.
There is no guidance or conference call due to the ongoing acquisition. Both sides have agreed to the acquisition so the fact that TWTR stock is trading 10% below is highly unusual in a merger with both sides agreeing. Clearly, merger arb players see the risk of the deal falling through as too high.
Tesla (TSLA) stock news: Negative US GDP blows more headwinds
Tesla has been overshadowed by Twitter of late. The collateral issue saw TSLA stock dump and it is attempting to recover slightly this morning. That is likely to change though as we type the US GDP release comes out unexpectedly lower. A major headwind for stocks. Dallas has reportedly chosen the Tesla Model 3 as its new police vehicle according to Electrek, but Model Y delivery times are getting ever longer according to Benzinga. Supply chain issues were mentioned at Tesla's last earnings release and inventories were down to only a few days.
The base Model Y long range now has a delivery time of February to May 2023. The Model Y Performance is due in June 2022. Higher prices look like meaning shorter delivery times.
Tesla (TSLA) stock forecast: No reason to change bearish outlook
Not much has changed, a slight recovery was always likely after the huge fall. The trend remains strongly bearish with $975 the key pivot and resistance. $700 is the next target, the most recent low.
Currently, there is no reason to change the bearish outlook. The poor US GDP number is not going to help.
TSLA stock chart, daily
*The author is short Tesla.
- TWTR stock rallies 1% after earnings.
- Tesla (TSLA) stock is also recovering after a Twitter-led collapse.
- Twitter is still a long way short of Elon Musk's $54.20 bid.
Twitter (TWTR) stock bounced a bit on Thursday after it reported earnings before the market opened. The release was slightly less significant than it otherwise might have been with Elon Musk's takeover offer still the dominant feature. Despite the $54.20 offer price TWTR stock remains some 10% below this level, which is a clear sign of the market's lack of faith in the deal getting across the finish line.
Twitter (TWTR) stock news: Revenues miss estimates
Twitter reported earnings per share (EPS) of $0.90 which beat the $0.87 estimate. Revenue though missed slightly, $1.2 billion versus the $1.22 billion estimate. Stock-based compensation rose 60% on the year and perhaps Elon Musk has this in his sights. Overall expenses at $1.33 billion were up about a third in the last year. Daily active users (DAU's) hit 229 million an increase of 16% versus last year.
There is no guidance or conference call due to the ongoing acquisition. Both sides have agreed to the acquisition so the fact that TWTR stock is trading 10% below is highly unusual in a merger with both sides agreeing. Clearly, merger arb players see the risk of the deal falling through as too high.
Tesla (TSLA) stock news: Negative US GDP blows more headwinds
Tesla has been overshadowed by Twitter of late. The collateral issue saw TSLA stock dump and it is attempting to recover slightly this morning. That is likely to change though as we type the US GDP release comes out unexpectedly lower. A major headwind for stocks. Dallas has reportedly chosen the Tesla Model 3 as its new police vehicle according to Electrek, but Model Y delivery times are getting ever longer according to Benzinga. Supply chain issues were mentioned at Tesla's last earnings release and inventories were down to only a few days.
The base Model Y long range now has a delivery time of February to May 2023. The Model Y Performance is due in June 2022. Higher prices look like meaning shorter delivery times.
Tesla (TSLA) stock forecast: No reason to change bearish outlook
Not much has changed, a slight recovery was always likely after the huge fall. The trend remains strongly bearish with $975 the key pivot and resistance. $700 is the next target, the most recent low.
Currently, there is no reason to change the bearish outlook. The poor US GDP number is not going to help.
TSLA stock chart, daily
*The author is short Tesla.
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