Shares rose Friday to close out the first week of trading in 2021. Most of Wall Street & # 39; s major indexes closed at new all-time highs amid continued hopes for more fiscal stimulus.
They climbed 1.6%, while they gained 1.8% this week. The tech-heavy and small-cap outperformed weekly, with 2.4% and 5.9% respectively over the period.
With Democrats in control of both the Senate and the House, investors will continue to focus on the prospect of more fiscal stimulus in the coming week. Markets will also be tested at the start of the earnings season, with JPMorgan Chase (NYSE :), Citigroup (NYSE 🙂 and Wells Fargo (NYSE 🙂 all ready to report their respective Q4 results on Friday.
This week's calendar also includes important December data, as does the latest report.
Regardless of which direction the market is heading, below we highlight one stock that is likely to be in demand in the coming days and another that could suffer additional losses. However, keep in mind that our timetable is for the next week only.
Stocks to Buy: NIO
NIO (NYSE 🙂 stocks are likely to enjoy increased buying activity in the next week after the Chinese Electric vehicle manufacturer unveiled its first sedan model – the ET7 – at its annual event Saturday.
Founder and Chairman William Li also showcased other key battery and autonomous driving technologies at the company's "NIO Day" event, which took place this weekend in Chengdu, China.
The ET7, which has a starting price of 448,000 ($ 69,000) excluding government subsidies – has a more powerful battery pack, giving it a claimed range of 1061 kilometers on a single charge. In comparison, Tesla & # 39; s Model 3 has a claimed range of 423 miles to 353 miles, depending on the configuration.
NIO's new sedan also has a camera resolution of 8 megapixels – compared to 1.2 megapixels for Tesla (NASDAQ 🙂 – and Nvidia (NASDAQ 🙂 chips that provide processing power greater than seven Tesla fully self-driving computers.
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Pre-orders began Saturday, with deliveries scheduled to begin in the first quarter of 2022.
Shares of the Shanghai, China-based EV company, which rose more than 1,200% in 2020, picked up where they left off last year and so far rose nearly 21% in 2021.
NIO shares ended Friday at a record high of $ 58.92, pushing it to a market cap of $ 92 billion. At current valuations, NIO is the world's fifth largest automaker, ahead of names such as Daimler (OTC :), Ford (NYSE :), Honda (NYSE 🙂 and General Motors (NYSE :).
The China-based electric vehicle manufacturer saw its car deliveries grow strongly in 2020, with sales more than doubling from a year earlier to 43,728. There are currently three electric car models for sale, all of them SUVs.
Despite its monstrous run-up and high valuations, we expect NIO shares to continue their remarkable performance over the coming week, thanks to its growing status as one of the leading names in the fast-accelerating electric vehicle sector.
] Stocks to Dump: Twitter
Investors may want to stay away from stocks on Twitter this week (NYSE: {{44334 | TWTR) following the unprecedented decision by the social media company permanently suspends US President Donald Trump from his platform, citing the risk of further incitement to violence. In a blog post published Friday night, the San Francisco-based company said:
“After a thorough review of recent tweets from the @ realDonaldTrump account and the context surrounding them – specifically how they are received and interpreted on and off Twitter – we have permanently suspended the account due to the risk of further incitement to violence. "
"Plans for future armed protests have already begun to spread, including a proposed secondary attack on the Capitol and state buildings on January 17, 2021," the blog post continued.
The Jack Dorsey-led social media company had temporarily blocked Trump's account earlier this week following the siege of Capitol Hill on Wednesday by pro-Trump protesters in an attempt to reverse his election loss.
Shares of the technology company got off to a rough start in 2021, falling by about 5% in the first week of trading of the year. The TWTR stock hit a session low of $ 50.20 on Friday, its worst level since December 11, before closing at $ 51.48, earning it a valuation of about $ 41 billion.
Trump – often the & # 39; tweeter-in-chief & # 39; Named for his incessant use of the social media platform – has tweeted more than 56,000 times since creating his account in 2009. He had an audience of 88.7 million followers prior to his suspension, with his tweets regularly drawing massive traffic and engagement.
In a White House statement, Trump said his administration was "negotiating with several other sites and will make a major announcement soon." He added that his team is "looking into the possibilities of building our own platform in the near future."
In addition, Trump reiterated his call to repeal Section 230 of the Communications Decency Act, a law that protects technology companies from liability for what users post on their platforms and for moderating it. The sentiment was echoed by other Republican lawmakers over the weekend.
Taking this into consideration, it appears that TWTR stock will remain on the backfoot for the next week as it faces growing challenges, both in terms of user engagement and growing regulatory issues.
