Wedbush Warns Musk Needs to Balance DOGE and Tesla Responsibilities
28 minutes ago
Dan Ives, a veteran Tesla analyst from Wedbush Securities, asserts that Elon Musk is crucial for improving the electric vehicle company’s image. He emphasizes that Musk must effectively manage his commitments with the Department of Government Efficiency while continuing his role at Tesla.
Ives, along with two colleagues, has maintained an outperform rating for Tesla with a price target of $550. They noted the company is facing a significant “brand tornado crisis” stemming from political backlash associated with Musk’s involvement with DOGE, which is linked to cost-cutting measures from the Trump administration.
To “shift the narrative” regarding Tesla’s stock, the analysts suggest Musk should formally declare his intention to balance his DOGE duties with his responsibilities as Tesla CEO. This statement is seen as essential to mitigate potential long-term brand damage for the car manufacturer.
Furthermore, they recommend Musk should provide investors with a clear “roadmap and timing” regarding the anticipated release of more affordable electric vehicles and details on the unsupervised full self-driving technology set to launch in Austin in June.
In the view of the analysts, “Tesla is facing a crisis, and there is one person who can solve it: Musk.” Shares of Tesla have approximately halved in value since their peak in December, affected by ongoing criticism and investors questioning whether Musk’s DOGE role is detracting from his focus on Tesla.
As of the latest trading, Tesla’s stock was down about 1%.
Darden’s Stock Rises After CEO Affirms Consumer Spending
1 hour 6 minutes ago
Darden Restaurants’ shares saw a significant increase on Thursday after its CEO indicated that consumer spending at their restaurants remains strong, counterbalancing the announcement of weaker-than-expected third-quarter sales for fiscal 2025.
The parent company of Olive Garden and LongHorn Steakhouse reported adjusted earnings per share of $2.80 and net sales of $3.16 billion. Analysts had anticipated $2.80 EPS and $3.21 billion in sales. Darden reported a slight overall increase of 0.7% in same-restaurant sales.
Despite the disappointing sales figures, CEO Rick Cardenas highlighted ongoing consumer spending, stating that consumer sentiment declines don’t appear to directly correlate with dining habits, as long as income continues to rise above inflation. The company also announced an extension of its partnership with Uber to expand delivery options.
Darden’s stock rose by around 5% during midday trading, outperforming the S&P 500 index with a 14% increase over the past year.
Five Below Shares Rise Following Strong Performance and Positive Outlook
1 hour 52 minutes ago
Five Below’s shares surged Thursday after the discount retailer exceeded expectations in its recent results and issued an optimistic outlook, benefiting from a well-executed holiday sales strategy.
The retailer reported adjusted earnings per share of $3.48 and net sales that grew 4% year-over-year to $1.39 billion. Both figures surpassed analyst predictions. Although same-store sales declined by 3%, this drop was less than anticipated.
COO Ken Bull noted the success of the holiday strategy focused on showcasing new value products while improving in-store operations and experiences. The company forecasts full-year sales between $4.21 billion and $4.33 billion and plans to open about 150 new stores this year.
While the stock enjoyed a gain of about 7% in the immediate term, it has plummeted over 60% in value throughout the past year.
Accenture Sees Stock Drop Amid Growth Concerns
3 hours 1 minute ago
Accenture’s shares fell sharply on Thursday after the professional services firm reported higher revenue but lower profit than anticipated for its fiscal 2025 second quarter, with a notable decline of 8% in stock value during trading.
The firm reported earnings per share of $2.82 and revenue of $16.66 billion, which fell short of analysts’ expectations of $2.85 EPS and $16.61 billion in revenue. Worries over growth are prevalent as economic conditions worsen and government spending decreases.
Despite raising its full-year revenue growth guidance from 4% to 5%, analysts from Morgan Stanley and Jefferies slashed their price targets for the firm due to cautious client sentiments amid exacerbated market uncertainties.
Accenture’s shares have now dropped more than 20% over the last year.
Boeing’s Stock Shows Resilience After Recent Surge
3 hours 58 minutes ago
Boeing shares had their most impressive performance in almost two years on Wednesday after optimistic comments from the financial chief, announcements about new aircraft orders, and positive delivery projections.
The stock rose nearly 7%, improving its year-to-date decline to just 2.5%, aligning with broader market trends. The recent performance followed a bullish engulfing pattern that marked the end of a three-week pullback in shares.
Investors should keep an eye on significant support levels at around $165 and $146, as well as resistance levels near $192 and $217, as the stock adjusts following a high trading volume indicating institutional buying.
As of premarket trading Thursday, Boeing shares were slightly down to around $172.
Major Stock Index Futures Indicate Lower Start
4 hours 40 minutes ago
Futures associated with the Dow Jones Industrial Average fell by 0.4% in recent trades, signaling a potential lower opening for the day.
Additionally, S&P 500 futures dropped by 0.5%, while Nasdaq 100 futures experienced a 0.6% decline, suggesting a general downward trend across major stock indices.
