Most traded stocks this week: Tesla, NVIDIA and Nike

Most traded stocks of the week

Below is a list of the 20 most traded stocks among StoneX Retail clients during the five trading sessions to the end of play on Friday June 30. Exchange-traded funds (ETFs) have been excluded.

Tesla is trading at nine-month highs in premarket trade today after revealing on Sunday that it delivered a record 466,140 cars worldwide in the second quarter of 2023, smashing the 448,350 forecast by analysts. That comes as Tesla continues to sacrifice market-leading margins in favour of volumes, although the significant beat suggests Tesla is not under pressure to keep cutting prices. The company produced 13,560 more vehicles than it sold in the period, although that has narrowed from the 18,000 difference we saw in the first quarter. Wedbush analyst Dan Ives, a long-time Tesla bull, said the figures will send ‘bears into hibernation mode’ as he maintained his Outperform rating and $300 price target. ‘Tesla continues to play chess while other EV players are playing checkers and this was another trophy case quarter for Musk & Co despite much skepticism from the Street the last few months and will create some fireworks for the bears on these robust number[s],’ Ives said in a note.

Apple popped to a fresh all-time high of $194 on Friday, when it finally became the first publicly-listed company to sustain a $3 trillion valuation. CFRA raised its price target on the iPhone maker to $220 from $190 this morning, suggesting some brokers still see plenty of potential upside. The stock has continued to power higher as it appeals to investors looking for both growth and stability. The Financial Times reported today that it has already had to scale back production of its new Vision Pro headset as manufacturers struggle with the complex design of the pricey bit of kit, which will sell for $3,499. The report said it is now aiming to make fewer than 400,000 of them in 2024 while two Chinese suppliers have said they have only been asked for enough components to make 130,000 to 150,000 units. Plans to introduce a cheaper model have also been pushed back.

Meta shares are lingering just below the 17-month highs hit last week as the social media giant continues to rebound on hopes that the advertising market will rebound later this year. The news that Apple is having trouble producing its mixed reality headset is providing some support to Meta shares in premarket trade today. That is because Meta currently enjoys a monopoly in the space and accounts for over 80% of global headset sales. There were also reports that Meta’s new app named Threads – which has been described by the media as a ‘Twitter clone’ – appeared on the Google Play Store over the weekend before disappearing.

Netflix has found it more difficult to find higher ground since climbing to 17-month highs last month. The recovery this year has been underpinned by hopes that its crackdown on password sharing and new ad-supported service can revive growth. The streaming giant is thought to be revamping its ad strategy by focusing on targeted and tailor-made advertising formats to win over advertisers, according to the Financial Times. This could include ‘episodic’ campaigns that would see a series of different by sequential ads pushed to users. The report also claimed that Netflix is now making more money from each user on its ad-supported platform than its normal service.

NVIDIA and other chipmakers came under pressure last week amid reports that the US government plans to broaden its ban on exports of advanced semiconductors to China to threaten a significant slice of the industry’s revenue. NVIDIA has designed less powerful chips for China since being told to stop exporting its most advanced products but the government is now thought to be drawing up plans to close this loophole, among others. NVIDIA’s chief financial officer Colette Kress said it is not anticipating any immediate financial impact but warned it could cause a ‘permanent loss of opportunities for the US industry to compete and lead in one of the world’s largest markets and impact our future business and financial results’. There was a broad recovery toward the end of the week. Most analysts said they believe this may cause a short-term pullback but shouldn’t dampen the AI-infused outlook.

Fellow semiconductor stock AMD also felt the heat from that news last week but has been rebounding. An AI startup named MosaicML, which has just been snapped-up for $1.3 billion, said last week that it believes AMD will be a strong challenger to NVIDIA when it comes to AI chips. NVIDIA has earned a big lead over its rivals and has become the chipmaker of choice for firms looking for the hardware they need for their AI ambitions. The firm said AMD’s MI250 chip currently provides about 80% of the performance of NVIDIA’s A100 chip, but that this could match it with software upgrades.

C3.ai remains popular as investors flock to AI stocks. Broker Oppenheimer said last week that C3.ai is ‘in the right place at the right time’ but said it needs to show ‘viral growth’ before unleashing a bullish case for the stock. Analyst Timothy Horan said the risk-reward profile following the surge this year is ‘relatively neutral’. Brokers have become more cautious on C3.ai following the stellar rise we have seen this year, with some also left disappointed by its recent investor day.

Nike shares have suffered since it released quarterly earnings last week, prompting multiple brokers to downgrade their target price on the athleisure giant. The company warned that first quarter revenue will be flat or up by a low-single digit percentage, which was hugely disappointing considering Wall Street had forecast a 5.8% rise. It said it should grow its topline by a mid-single digit over the full year compared to the 6.3% rise pencilled-in by analysts. That came as revenue once again beat expectations in the latest quarter, while earnings came in just short. The soft outlook is largely being blamed on consumers in its largest market of North America cutting back on purchases, countering the recovery we are seeing in China. A wave of brokers lowered their target price on the stock, which now stands at an average of $128.61 compared to almost $135 before the results were released.

Coinbase shares briefly hit their highest level in over three months on Friday before closing down. Bitcoin, which is currently trading above $30,600, found some support last week as markets got excited about new bitcoin exchange-traded funds (ETFs) – which would allow traders to trade the cryptocurrency without having to actually handle it. Exchange operator Cboe refiled an application with US regulators last week to launch a bitcoin ETF fund by asset manager Fidelity, saying it will work with Coinbase to prevent any market manipulation. Other exchange operators are also thought to be pushing for new ETFs, including Nasdaq, which is thought to be pushing for a spot-ETF run by BlackRock. It comes at a difficult time for the industry as regulators crackdown on numerous players.

ImmunoGen shares pulled back last week after the stock hit all-time highs last month. The stock is trading 3.6 times higher today than it was at the start of May, having soared higher following positive trial results out from its drugs, including treatments for ovarian cancer and rare blood diseases.

Carnival has further room to rise despite being the third best performer in the S&P 500 this year after rising over 133%, according to Jefferies. The broker said on Friday that it still has room to climb higher despite its stellar run in 2023 as it set the highest target price on its US-listed shares among all brokers at $25. ‘Despite the strong year-to-date performance, we believe the journey from a good trade to long-term investment case remains ahead,’ said analyst David Katz.

BP shares are at a three-week high after following oil prices higher. Brent is pushing higher for a fourth consecutive session today and currently trades at over $75 per barrel. Rival Shell is at its highest level in over a month for the same reason.

UK banks such as Lloyds and Barclays remain in the firing line as ministers bemoan the low savings rates offered to customers despite rising interest rates. The Treasury committee said it has written to the Big Four banks – which also includes HSBC and NatWest – asking if they believe their savings rates offer ‘fair value’. ‘With interest rates on the rise and our constituents feeling squeezed by rising prices, it is only right that the UK’s biggest banks step up their measly easy access savings rates. The time for action is now,’ said chair Harriett Baldwin. Meanwhile, Lloyds agreed to buy 604 homes from UK housebuilder Barratt Developments last week for around £168.4 million as part of its push to become a major landlord.

Rolls Royce lost ground last week, suffering its heaviest fall in six weeks on Thursday after UBS warned it will need to deliver first half results in August without any negative surprises to maintain investor confidence as it pushes ahead with its turnaround strategy. However, the broker said there is a risk that flying hours – which is how Rolls Royce makes the bulk of its money from its aircraft engines – could disappoint as data suggests the seasonal uplift in passenger numbers has not happened yet. It predicted flying hours will be some 83% to 85% of pre-pandemic levels in the first half, although that is within its 80% to 90% guidance. The stock has recovered some ground since then and is trading higher again today, with UBS sticking by its long-term thesis for the company.

Manchester United remains under the spotlight as the drawn-out sales process continues. The club was put up for sale in November last year but it is still unclear who will own by the time the next season comes around. The two candidates leading the pack are still thought to be billionaire Jim Ratcliffe and Sheikh Jassim bin Hamad Al Thani.

Delivery Hero shares have risen to their highest level in six weeks. It found momentum last week after RBC said its service ‘remains attractive versus its peers, particularly in its largest markets’. The broker said this strengthened the case that it can deliver double-digit growth once demand returns. It is its preferred name in the food delivery space, although the entire industry is facing a challenging environment. Goldman Sachs also initiated coverage on Delivery Hero with a Buy rating last week.

Singapore Airlines rebounded today after closing at a three-week low last week. The airline suffered a heavy fall after Singapore’s state investor Temasek sold shares equal to a 1.85% stake in the company for around SGD400 million, equal to around $295.9 million. The shares were sold at a price between SGD7.202 to SGD7.283. It currently trades at SGD7.33. Temasek is still the controlling shareholder with a 53.5% stake.

Dufry is at a four-week high after announcing late on Friday that it has acquired enough shares in Autogrill to squeeze out other shareholders and delist the business. The travel retailer has been buying shares in the Italian catering company and now has over 96% of its float. ‘Dufry will therefore be able to initiate the squeeze-out procedure, which will result in Dufry holding all of Autogrill’s shares, and delisting Autogrill,’ Dufry said in a statement.