1 stock to buy, 1 to dump when markets open: Tesla, Robinhood

Stocks on Wall Street ended lower on Friday, but the benchmark still scored weekly gains as disappointing monthly US data did not affect risk appetite.

The coming week is expected to be another busy week as the third quarter earnings season kicks off, with names such as JPMorgan Chase (NYSE:), Bank of America (NYSE:), Citigroup (NYSE:), Wells Fargo (NYSE:), Goldman Sachs (NYSE:), Morgan Stanley (NYSE:) and Delta Air Lines (NYSE:) all report their latest financial results.

In addition, important economic data is also on the agenda for the week, including the latest figures and figures.

Regardless of which direction the market goes, below we highlight one stock that is likely to be in high demand in the coming days and another that could see new losses.

However, remember that our timetable is only for the coming week.

Stock to buy: Tesla

Tesla (NASDAQ:) stocks are likely to see more buying activity in the coming week following optimistic comments from CEO Elon Musk at a festival held this weekend at the electric vehicle manufacturer’s new factory near Berlin.

Musk told a cheering audience of about 9,000 people that he expect to deliver the first vehicles from Tesla’s new factory in Berlin as early as December. He added that volume production would be about 5,000, “but hopefully 10,000” vehicles per week, with batteries being made in volume by the end of next year.

In addition, he said he hoped the factory would build Tesla’s planned trucks in the future. However, he warned that volume production would take longer.

Meanwhile, Musk tweeted on Saturday that Tesla will roll out its Full Self-Driving (FSD) Beta 10.2 software to more drivers on Sunday or Monday, after its release was delayed late last week due to last-minute concerns over its build.

TSLA shares closed Friday at $785.49, earning the EV company — which recently announced plans to move its headquarters from Palo Alto, California in Silicon Valley, to Austin, Texas — earning a market cap of $777.6 billion. .

At current valuations, Tesla is the world’s largest automaker, surpassing names like Toyota (NYSE:), Daimler (OTC:), General Motors (NYSE:), Honda (NYSE:) and Ford (NYSE:).

After gaining more than 740% in 2020, TSLA stock — which hit a record high of $900 on Jan. 25 before an aggressive reset in valuations hit the entire EV industry — is up just 11% in 2021.

Tesla is expected to report third quarter financial results after US markets close on Wednesday, October 20. Consensus expectations call for the EV pioneer to post earnings of $1.44 per share, an improvement of nearly 90% from the same period last year. Sales, meanwhile, are expected to grow 52% year-over-year to an all-time high of $13.3 billion, fueled by strong deliveries.

Stock to Dump: Robinhood Markets

Shares of Robinhood Markets (NASDAQ:) are expected to experience another challenging week as investors continue to worry about the negative impact of several factors plaguing the popular trading platform.

The latest negative news came after the financial services firm warned in a regulatory filing late Friday that: possible SEC intervention in a payment arrangement between brokers and trading firms, known as ‘Payment For Order Flow’ (PFOF), could pose risks to its core businesses.

The practice, where brokerage firms receive a fee for forwarding orders to various parties for trade execution, accounts for a significant stream of revenue from Robinhood. Robinhood also said potential regulation of cryptocurrency trading and digital currency markets — which accounted for 41% of revenue in the second quarter — could be another cause for concern.

In addition to the gloomy sentiment, the brokerage firm said in the amended filing it will try to speed up approval for when large blocks of shares can be sold by early investors.

HOOD shares — which started trading at $38 on the New York Stock Exchange after the company’s much-hyped IPO in late July — ended Friday’s session at $41.78, more than 50% below their all-time high of $ 84.12 on August 4. At current levels, the Menlo Park, California-based stock market trading platform has a market cap of $35.9 billion.

Robinhood then reports profit after the US market closes on Nov. 17.

Consensus calls for a loss of $0.63 per share for the third quarter on revenue of $423 million. The company reported a Q2 loss per share of $2.16 at $565 million, benefiting from a surge in crypto trading.