Stocks on Wall Street extended their rally last week, climbing above the 4000 level for the first time in history, amid persistent optimism about the economic outlook.
Between another batch of key economic data and the release of the latest Federal Reserve policy meeting, the next week is expected to be a busy week on Wall Street.
Regardless of the direction the market is heading, we have highlighted below one stock that is likely to be in high demand, and another stock that could see another downside.
However, keep in mind that our timetable is for the next week only.
Stock to Buy: Tesla
Tesla (NASDAQ 🙂 stocks are likely to buy more activity in the next week after the Elon Musk-led electric car manufacturer & # 39; s had reported record first-quarter vehicle delivery figures over the weekend, once again defying the skeptics and bears.
The pioneering EV company said Friday it shipped 184,800 vehicles over the three months ended March, a whopping 109% more than the same period last year, amid strong demand for its Model 3 and Model Y vehicles. vehicles.
According to consensus estimates, 168,000 vehicles were to be delivered.
The first quarter figures represent a new record for the world's most valuable automaker. The previous peak was reached in the fourth quarter of 2020, when Tesla delivered 180,570 vehicles. In addition, the Palo Alto, California-based company said it had produced 180,338 cars in the first three months of 2021.
To add to those encouraging numbers, Apple (NASDAQ 🙂 confirmed late last week that it plans to use Tesla batteries at its new renewable energy storage facility in California. The project, to which Tesla will provide 85 Megapack battery energy storage systems, bodes well for the future as it could indicate a warmer relationship between the two tech giants than previously thought.
TSLA shares ended Friday's session at $ 661.75, about 26.5% below its all-time high of $ 900.13 reached on January 25, giving the company a market cap of $ 635.1 billion achieved.
The booming electric vehicle sector was one of the best-performing stock groups of the past year, before an aggressive reset in valuations hit the industry in recent weeks. After hitting gains of over 740% in 2020, TSLA shares are down 6% so far this year.
Stock To Dump: AMC Entertainment
AMC Entertainment Holdings' (NYSE 🙂 stocks seem to remain under pressure over the next week as investors continue to be concerned about the negative impact of various factors hindering the Leawood, Kansas cinema operator.
AMC shares ended Friday's session at $ 9.36, more than 50% below the recent high of $ 20.32 on January 27.
Despite the recent sell-off, AMC shares – which started the year at $ 2.12 – are still up about 340% in 2021 due to their extreme popularity with young retail investors on Robinhood and Reddit's WallStreetBets -forum.
At current valuations, AMC, the largest movie theater company in the world, has a market capitalization of $ 4.5 billion.
Sentiment about the meme shares took a hit last week after news that AMC plans to seek shareholder approval to allow an additional 500 million new shares as it seeks to raise much-needed cash to reduce crippling indebtedness and avoid bankruptcy.
AMC first announced plans to apply for the additional stock license in late March, with shareholders voting on the measure at the company's annual meeting on May 4.
To make matters worse, several movie studios, including Warner Bros. and Universal Pictures, recently announced that they plan to release many major movies directly on various streaming services this year, such as Walt Disney Company's (NYSE 🙂 Disney +, and AT & T's (NYSE: ) HBO Max.
The unprecedented step could be a turning point for the movie theater industry. It could also diminish AMC's chances of a successful turnaround in the coming months.
Taking this into account, AMC stock could decline further in the coming days.
