Stock Price Today (February 18): Updates and Forecast
|Photo: US News|
Apple could soar 66% in bull-case scenario as it searches for a 'golden' partnership to build electric vehicles
Apple's ambitions in the electric-vehicle space are heating up, as recent reports have suggested that the iPhone-maker has held talks with Hyundai and Nissan on a partnership to develop an Apple car.
The Wedbush analyst Daniel Ives expects Apple to strike a formal partnership with an auto manufacturer sometime in 2021, which could lead to a bull-case scenario in which shares of Apple surge 66%, to $225.
Ives said there was an 85% chance that Apple would announce an EV partnership over the next three to six months; pressure for Apple to finalize its plans is likely rising as recent announcements from Ford and General Motors revealed aggressive EV ambitions.
The electric-vehicle sector is "entering a golden age" as factors like battery technology, regulatory incentives and tax credits, and more affordable models create "a perfect storm for demand," Ives said in a note on Monday."With a Biden-driven green tidal wave on the horizon, we believe now is the time for Apple to dive into the deep end of the pool on the EV front," Ives said.
"With a market that could be $5 trillion+ over the next decade, if Apple gets just 5% - 10% of share this could represent another major growth pillar within Cupertino," Ives said.
To capitalize on the opportunity, a "golden partnership" could set Apple up well for the next decade, Ives said. Ives speculated that Apple could strike a strategic partnership with Hyundai, Tesla, Ford, Nio, or Volkswagen, according to Markets Businessinsider.
The top two choices, according to Ives, are Hyundai and Volkswagen. Hyundai has "huge" production capabilities thanks to its proprietary Electric Global Modular Platform, and its robotic assembly design could fit well with Apple's software and autonomous integration capabilities, Ives said.
Volkswagen's so-called modular electric drive matrix "is a next generation design framework that would allow easy integration of new models from the likes of Apple," Ives said. Volkswagen is also invested in QuantumScape, which could develop a differentiated battery pack for electric vehicles with its solid-state battery technology, the note said.
"In a nutshell, Apple with the right partner would be a major force in the EV industry and could disrupt market share from the likes of Tesla, GM, Ford if the company is able to get the Apple Car on the road by 2024," Ives said.
Wedbush reiterated its "outperform" rating and 12-month price target of $175 on shares of Apple, representing potential upside of 29% from Friday's close.
|Tesla CEO Elon Musk and Apple CEO Tim Cook. Photo: Markets.businessinsider.|
'Big Short' investor Michael Burry says the Tesla boom is 'remarkably similar' to the dot-com and housing bubbles
The hype around Tesla reminds Michael Burry of the dot-com bubble in the late 1990s and the housing bubble of the mid-2000s, he said in a tweet on Monday.
"In the SF Bay Area, $TSLA vehicles are everywhere," the investor said in a tweet that has since been deleted.
"Everyone I know owns 1+, though some have gone back to ICE," he said, referring to the internal combustion engines of conventional cars.
"I've talked to industry players, down to the mechanics," he continued. "Remarkably similar to 1999 and 2006."
Burry's billion-dollar bet on a US housing-market crash was immortalized in the book and movie "The Big Short."
The Scion Asset Management boss, who has been a vocal critic of Tesla for several months, revealed in December that he was short Elon Musk's electric-vehicle company.
"I live in the land of $TSLA," Burry said in another tweet on Monday. "I know what a Tesla car is. I talk to the mechanics and dealers. But being short is so much more than that."
Tesla's stock price has rocketed more than 800% since the start of 2020, lifting its market capitalization to north of $780 billion.
Burry also tweeted last month that the striking rally was similar to past bubbles in internet stocks and housing.
Of the idea that Tesla's lofty stockprice is self-fulfilling because the business can issue shares to fund its growth, Burry said, "Saw this same thesis many times while partying in 1999."
"My last Big Short got bigger and Bigger and BIGGER too," he said in another tweet. "Enjoy it while it lasts."
The Scion chief has slammed Tesla's sky-high valuation, paltry sales, minimal profits, and massive market capitalization relative to other automakers.
Burry has also described the company's battery technology as "inferior" and flagged reports of its cars catching fire.
"What do $TSLA, $BTC, option gamma traders have in common? Rhymes with Rubble," he tweeted in November.
SOS Stock Price Predictions: What SOS Limited Bulls Are Forecasting
The increasing price in SOS stock comes alongside heavy trading of the shares. As of this writing, more than 100 million shares of the stock have changed hands. To put that into focus, the company’s daily average trading volume is closer to 17 million shares, said Investorplace.
So why exactly are shares of SOS stock on the rise today? It likely has to do with bull traders online pushing for more investors to pump up shares of the stock. Also, the increasing price of Bitcoin (BTC) is also likely a factor in the increase.
With all that in mind, here are some examples from social media of bulls that are pushing for SOS stock to continue its rise.
“SOS Ltd. is a small player in the crypto world with the share price being only 4,2$ (as of writing this). It’s not like some of the smaller crypto mining players like $CWLD or $MGTI who are sub 1$ but it instead has a nice foundation of a few dollars. When comparing this to other stocks like MARA (38$) and RIOT (39$) this has potential for huge gains.” — MarZ_1337, Reddit PennyStocks
“$SOS if you thought this was going to straight line up to $20 thats your fault for buying high. There’s ALWAYS pull backs. By end of lunch and PH this will be back to wards $12.50-13. But stop freaking out because you bought in before waiting on a healthy pullback to build support.” — collegeballer48, StockTwits.
SOS Limited is a crypto mining company that has been beefing up its business lately. It announed last week that it’s adding 5,000 mining machines to its network. With the rising price of bitcoin, it only makes sense that a mining company for the cryptocurrency would also see an increase.
Palantir Stock Falls As 2021 Revenue Outlook Disappoints, IPO Lock-Up To Expire
Palantir Technologies (PLTR) on Tuesday reported December-quarter earnings and revenue that topped estimates as it closed several large deals. Palantir stock plunged as full-year 2021 revenue guidance came in slightly below expectations, Investors reported.
Heading into the Palantir earnings report, the enterprise software stock traded just below a buy zone.
For the fourth quarter, Palantir reported a loss of 8 cents per share, including stock-based compensation, using Generally Accepted Accounting Principles, or GAAP, rules.
Revenue climbed 40% to $322 million, said the provider of data analytics software to U.S. government agencies. Analysts had projected a 2-cent adjusted profit, excluding stock-based compensation, on revenue of $300.7 million.
Denver-based Palantir said it had fourth-quarter adjusted operating income of $104.1 million, excluding stock-based compensation and other costs. That topped analyst estimates for adjusted operating income of $47.7 million.
Palantir Stock: 2021 Revenue Outlook Light
For the current quarter ending in March, Palantir forecast revenue growth of more than 45%. Analysts polled by FactSet had projected first-quarter revenue of $309.5 million, up 35%.
For full-year 2021, Palantir said it expects revenue growth of 30%, slowing from 2020's 47% growth. In addition, analysts had predicted 2021 revenue growth of 31% to $1.406 billion.
Palantir stock fell 12.8% to close at 27.84 on the stock market today.
Palantir is shifting away from multiyear contracts with upfront payments to annual recurring revenue.
A direct listing of Palantir stock was launched on Sept. 30 priced at 7.25 a share. The IPO lockup period expires around Feb. 19, with 80% of shares outstanding becoming free to trade.
Heading into the Palantir earnings report, the stock owned a Relative Strength Rating of 95 out of a possible 99.
Palantir Founders Hold Super-Voting Rights
Government agencies use Palantir software for intelligence gathering, counterterrorism and military purposes. The software maker aims to expand into the health care, energy, and manufacturing sectors.
In the fourth quarter, government revenue jumped 85% to $190 million, topping estimates of $164.6 million. However, commercial revenue rose only 4% to $132 million, missing estimates of $136.7 million.
Palantir stock belongs to the IBD Leaderboard. Leaderboard is IBD's curated list of leading stocks that stand out on technical and fundamental metrics.
Palantir's governance structure gives co-founders Peter Thiel, Alex Karp and Stephen Cohen long-term control of the company through super-voting rights.
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