Tesla reaches a $1 trillion market cap post-election, while Upstart and Astera Labs skyrocket on earnings surprises.
Sectors & Industries
November 11, 2024
This week, LevelFields alerts yielded impressive gains. GEO surged 42% after a quick sprints alert, while AGFY rose 40% on news of the CEO’s departure. FRSH increased 28.5% following a $400M stock buyback announcement. HCKT climbed 17.5% after expanding its repurchase plan by $20M, bringing the total to over $31M. CEVA also gained 16.5% after announcing its own stock buyback.
Tesla’s market cap reached $1 trillion following Donald Trump’s recent election victory, which has driven a surge in the company’s stock. For the rumored $50 million Musk invested in Trump's campaign, Tesla's market cap increased over $200 billion in a week.
Tesla CEO Elon Musk’s alliance with Trump is anticipated to benefit Tesla by potentially influencing policies on self-driving vehicle regulations, giving the company a competitive edge. Musk’s active support for Trump included founding a super PAC and agreeing to lead a Department of Government Efficiency (DOGE) to reduce federal spending. Trump’s win could disadvantage other automakers as he may freeze EV tax credits, a move Musk says would hurt competitors a lot more than Tesla.
Upstart Holdings’ stock soared 46% to $80.81 after the company posted better-than-expected third-quarter earnings and raised its outlook. The AI-based lending platform reported a smaller-than-expected adjusted loss of 6 cents per share, beating Wall Street’s anticipated 15-cent loss, with revenue growing 20% year-over-year to $162 million. CEO Dave Girouard announced that Upstart is “back in growth mode.” Analysts at J.P. Morgan and Needham praised the company’s performance, noting positive trends and improved profitability prospects amid declining interest rates.
Astera Labs’ stock jumped 33% after strong earnings, with adjusted EPS of 23 cents beating Wall Street’s forecast of 17 cents, and revenue up 206% to $113.1 million. The semiconductor company, which supports Nvidia’s AI infrastructure, exceeded expectations with its Q4 guidance. Analysts are bullish, citing Astera’s expanding product line and key partnerships with Nvidia, Amazon, and AMD, positioning it as a leader in AI infrastructure.
Regional bank stocks soared on Wednesday, marking their strongest day in four years, driven by investor optimism over Donald Trump's expected pro-business policies. The SPDR S&P Regional Banking ETF surged 13.4%, while the Russell 2000 index, heavy in regional banks, rose 6%. Tailwinds for the sector include increased lending, lower corporate taxes, regulatory easing, potential mergers, undervalued stocks, a steep Treasury yield curve, and underweight positioning, all favoring regional banks under Trump’s administration.
Toast Inc.’s stock surged 20% this week after reporting better-than-expected third-quarter revenue. The restaurant-focused digital payment platform posted a net income of $56 million, or 7 cents per share, marking a significant turnaround from the previous year’s $31 million loss, or 9 cents per share. Despite a slight profit miss, the strong revenue performance boosted investor confidence.
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