Options Market Statistics: Tesla Stock Tumbles and Options Pop as Wells Fargo Analysts Call it a 'Growth Company With No Growth'
News Highlights
$Tesla(TSLA.US$ shares lowered by 4.54%, closing at $169.48. Its options trading volume was 2.95 million. Call contracts account for 37.9% of the total trading volume. The most traded calls are contracts of $175 strike price that expire on Mar 15th. The total volume reaches 123,035 with an open interest of 16,043. The most traded puts are contracts of a $170 strike price that expires on Mar 15th; the volume is 233,918 contracts with an open interest of 36,133.
Tesla shares moved lower Wednesday morning as analysts at Wells Fargo said the stock "ain't looking so 'Magnificent'" and that the electric vehicle maker is a "growth company with no growth."
The electric vehicle maker, a member of the so-called Magnificent 7 group of tech stocks, was trading at its lowest price in 10 months after Wells Fargo lowered its rating to underweight from equal weight and cut its price target to $125 from $200. Tesla shares, which have shed nearly a third of their value since the start of the year, were down over 4% today.
The downgrade comes as the overall EV market has cooled and competition has intensified, developments that have led Tesla to announce a series of price cuts to boost demand. Those price cuts are having little effect on Tesla's sales and are pushing down profits, Wells Fargo analysts led by Colin Langan said in a note.
Wells Fargo said that Tesla trades at a premium to its Magnificent 7 peers even as it is likely to show no growth in sales volume this year and a drop next year. The bank noted that its estimates for Tesla's profits in 2024 and 2025 are now 32% and 52%, respectively, below the Wall Street consensus.
$Walmart(WMT.US$ shares lowered by 0.21%, closing at $61.28. Its options trading volume was 0.45 million. Call contracts account for 94.1% of the total trading volume. The most traded calls are contracts of $58.33 strike price that expire on Mar 15th. The total volume reaches 93,220 with an open interest of 34,959. The most traded puts are contracts of a $60 strike price that expires on Mar 22nd; the volume is 3,934 contracts with an open interest of 4,607.
$SoundHound AI(SOUN.US$ shares rose by 24.82%, closing at $8.65. Its options trading volume was 0.39 million. Call contracts account for 80.3% of the total trading volume. The most traded calls are contracts of $6 strike price that expire on Mar 15th. The total volume reaches 57,062 with an open interest of 8,802. The most traded puts are contracts of a $7 strike price that expires on Mar 15th; the volume is 15,781 contracts with an open interest of 1,942.
SoundHound AI stock is continuing to rise amid the frenzy for generative AI (GenAI).
SOUN stock opened at $7.28 a share this morning after selling for under $6 early on March 12. The rally has lifted the company's market capitalization to over $2.2 billion.
The stock may rise further as the company prepares to present at the $NVIDIA(NVDA.US$ GPU Technology Conference on March 18. SoundHound is a voice recognition company that originally sold its software to car companies. Now, it is using artificial intelligence (AI) to serve restaurants and call centers. Nvidia has invested in it.
Voice services have recently become a popular AI niche. But SoundHound faces competition from Cloud Czars as well as an open source voice clone. Artists are worried that the new software will copy their voices and lead to fraud.
So far, SoundHound is trying to sidestep these problems. The company is focused on connecting database computing to voice recognition. Understanding the voice on the other end, rather than replicating any particular voice, is the aim.
Unusual Stock Options Activity
Some notable call activity is being seen in $Gogo Inc(GOGO.US$, which is primarily being driven by activity on the Aug. 16th call. Volume on this contract is 20,051 versus open interest of 115.
For all the mooers in Singapore, you can now lower your options commssions with our new campaign. Come check the link: US Stock Option.
Daily Active Index & Sector ETF Options
Source: Barchart, Unusual Whales, Barron's, The Motley Fool
Disclaimer: Options trading entails significant risk and is not appropriate for all investors. Certain complex option strategy carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Option. This article is for information and illustrative purposes only, and is not a promotion of option trading or a recommendation of any of the specific option mentioned above.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
Empower your trading with options news and insights. Stay informed, make better decision, trade wiser. Not an advisor
10KFollowers
13Following
20KVisitors
Follow
Tyti-T : ….
73953267 : telsa is a winwin
BelleWeather 73953267: Agree! On sale! :) So many choices….
ET Rodriguez : great information
kong光 : well
ZnWC : Ives said the current bearish narrative is similar to those seen a number of times over the years, when doubters who said Tesla's time to shine was over and EVs were just a fad had been proven wrong. And while Ives said EV demand has clearly moderated, he expects sales and profitability to improve in the coming quarters.
Wedbush reiterated buy rating on Tesla stock retains $315 price target
https://www.moomoo.com/community/feed/112088639995910?share_code=00M7lA