Stocks rose to new record highs last week, ending an exciting year for the major Wall Street averages.
The tech-heavy gained 43.6% in 2020, scoring its best performance in a year since 2009. They ended the year with a 16.3% gain, while they were up 7.3%.
Investors will be watching new COVID-19 headlines over the next week amid ongoing concerns about the pandemic. Markets will also pay close attention to the outcome of the second round of the Senate election in Georgia.
In addition, there is also important data for December, as well as the last batch of ISM Purchasing Manager Indexes expected in the coming week.
Regardless of which direction the market is heading, below we highlight one stock that is likely to be in high demand in the coming days and another stock that could suffer additional losses.
Stocks to Buy: Tesla
After making a profit of more than 700% in 2020, Tesla's stock (NASDAQ 🙂 New Year exactly where they left off.
TSLA shares rose to a new high of $ 718.72 on Thursday, December 31, before closing the last day of 2020 at $ 705.67, earning the EV pioneer a market cap of approximately $ 669 billion.
Tesla is likely to see more buying activity in the coming week after the Elon Musk-led electric car maker reported record fourth-quarter vehicle delivery figures over the weekend}}, despite the impact of the ongoing coronavirus pandemic
.
The company said Saturday that it shipped 180,570 vehicles over the three months ended December, a 61% increase from the same period last year. According to consensus estimates, 174,000 vehicles were needed.
The fourth quarter figures represent a new record for the world's most valuable automaker. The previous peak was reached in the third quarter of 2020, when Tesla delivered 139,300 vehicles.
For the year, Tesla shipped 499,550 vehicles in 2020, more than Wall Street expectations for 481,261 vehicles, but just below the most recent guideline of 500,000 vehicles.
Despite the fact that Tesla slightly missed his ambitious annual goal, he had little chance of getting even close to 500K earlier this year when pandemic lockdowns forced him to close his Fremont, California plant.
Also noteworthy, Tesla said production of Model Y has begun at its Shanghai plant and deliveries are expected to begin shortly.
We expect the welcome news to push TSLA stock even higher in the coming week, with market cap continuing to move towards the overwhelming $ 1 trillion level.
Stock to dump: Alibaba
Investors may want to stay away from shares of Chinese e-commerce giant Alibaba (NYSE 🙂 this week due to recent news that is the subject of increased antitrust investigations by the Chinese government.
Last month, authorities in Shanghai announced an anti-monopoly investigation into the company, dubbed the {{0 | Amazon of Asia, after founder Jack Ma gave a speech criticizing Chinese regulators and state-owned banks.
Following the speech, the Chinese Communist Party (CCP) ordered the suspension of the $ 37 billion blockbuster of Ma & # 39; s fintech company Ant Group.
Once a poster boy of the country's communist regime, Jack Ma has not been seen in public since late October, according to reports. The 56-year-old tech mogul was also suddenly replaced as a judge on his own entrepreneurial reality TV competition, a show he made.
Additionally, there has been no recent activity on his Twitter account, which until a few months ago usually showed numerous tweets per day.
As such, the BABA stock has recently been on the run, with investors becoming increasingly concerned about the Chinese tech giant's future prospects. The shares, which finished at $ 232.73 last week, are now about 27% below the recent high of $ 319.32 set on October 27.
From a technical standpoint, Alibaba's share has fallen below the 50-day, 100-day, and 200-day moving average, usually indicating increased selling pressure.
Taking this into account, it appears that BABA's stock will remain on the defensive for the next few days as it continues to face serious challenges, with the Chinese government reportedly seeking to take a greater stake in the company.
