Tesla’s Rising Stock Is Moving Toward Break-Even for 2025
42 minutes ago
Tesla’s stock is on the rise.
Shares of the electric vehicle maker, up 10% this month through Thursday’s close—and up another 6% so far today—are on a roll. Though it’s been bumpy, Tesla (TSLA) stock has climbed off year-to-date lows around $222, seen in March, and is approaching break-even. (The stock, which finished last year near $404, was recently around $394.)
The recovery is notable for a stock that, as of the end of the first half of the year, was the laggard of the Magnificent 7. It was one of only two companies in the big-tech grouping in the red, Apple (AAPL) being the other, also tailing all three major U.S. indexes. (The Roundhill ETF that tracks the Magnificent 7 group, known as “MAGS,” is up about 14% this year.)
The stock has likely been boosted by factors that have lifted stocks broadly. Investors widely expect the Federal Reserve to cut rates next week, a move generally seen as beneficial to big tech companies. Strong second-quarter earnings growth has offered a measure of optimism to investors attempting to gauge the strength of the economy. (Though there’s plenty of concern on that score, too.)
But Tesla-specific factors also seem to be lifting the shares. Despite wariness about the health of the company’s EV business, some investors appear willing to pay up for the possibility of a big opportunity in robotics, as well as for signs of progress in autonomous driving at both Tesla and more widely. A costly public feud between CEO Elon Musk and President Donald Trump, while not extending valuable EV credits, has apparently cooled.
And Tesla’s board has offered CEO Elon Musk a pay package that could remove a “Will he stick around?” overhang from the company’s outlook—albeit at a high price. (Further enthusiasm for the stock may be attributed to what some see as potential for a “short squeeze” in which investors who traded against the shares have to buy it as it rises to cover short bets.)
Wall Street analysts don’t appear ready to climb aboard en masse. Visible Alpha tracks about as many combined bearish and neutral ratings as bull calls, while its mean price target around $327 is substantially below current levels. Investors are, nevertheless, driving ahead.
RH Stock Sinks as Furniture Retailer Says Tariffs Hurt Results, Outlook
1 hr 40 min ago
Shares of RH (RH) fell Friday, a day after the upscale furniture and home accessories retailer posted weaker-than-expected results and lowered its guidance on uncertainty about the impact of tariffs.
The company reported second-quarter adjusted earnings per share of $2.93 on revenue that rose 8% year-over-year to $899.2 million. Analysts surveyed by Visible Alpha were looking for $3.22 and $904.6 million, respectively.
RH said its performance was hurt by “the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years.” A bright spot was its RH Gallery location in England, which saw demand up 76%, and online demand 34% higher.
The company noted that because of the tariffs, it has continued to move production out of China, and was now “aggressively responding” to the 50% duties the Trump administration has slapped on imports from India, which constitutes 7% of RH’s business. In addition, the company has increased operations at its North Carolina plant.
RH explained that both macroeconomic uncertainties and its belief that inflation will increase significantly the rest of this year and next have led it to revise its outlook. The company now sees full-year adjusted EBITDA margin of 19% to 20%, down from the previous forecast of 20% to 21%. It anticipates revenue growth of 9% to 11%, compared to the earlier estimate of 10% to 13%.
RH shares were down 4% in recent trading and have lost about 45% of their value year-to-date.
Big Bank Executives Sound Off Ahead of Next Week’s Rate Decision
2 hr 33 min ago
Those who track economic data like sports box scores got a doubleheader this week. Inflation rose to its highest level since January, and the U.S. economy added far fewer jobs last year than previously thought, according to a pair of Bureau of Labor Statistics reports.
Meanwhile, the market is bracing for the Federal Reserve to cut interest rates for the first time this year when it meets next week. It’s been a busy week, and the CEOs of the Big Banks had a lot to say about it.
“I think the economy is weakening,” JPMorgan Chase (JPM) CEO Jamie Dimon said in an appearance on CNBC. “Whether it’s on the way to recession or just weakening, I don’t know.”
Cyril Marcilhacy / Bloomberg via Getty Images
The Bureau of Labor Statistics estimated the U.S. economy added 911,000 fewer jobs in the 12 months through March 2025 than previously reported. The revision, while normal for the bureau as it gathers more information over time, was the largest preliminary adjustment on record, going back to 2000.
Dimon said the Fed will “probably” lower interest rates when it meets Tuesday and Wednesday next week, but he noted that the widely expected adjustment may “not be consequential to the economy.”
Get the full story on what big bank executives think of the economy here.
Supermicro Stock Rises as Server Maker Begins Shipping Nvidia Blackwell Products
3 hr 31 min ago
Super Micro Computer (SMCI) shares gained on Friday as the computer hardware maker announced it was delivering products with Nvidia’s (NVDA) high-speed Blackwell Ultra chips for artificial intelligence computing.
The company explained that the Blackwell chips were in Supermicro’s Plug-and-Play (PnP)-ready NVIDIA HGX B300 systems and GB300 NVL72 racks.
Supermicro added that its total solution with the Blackwell chips is “fully integrated to combine the hardware with infrastructure software and application software, including NVIDIA AI Enterprise, NVIDIA Blueprints, and NVIDIA NIM to bring optimized AI performance to these powerful systems.”
Supermicro CEO Charles Liang said that his firm “has the best track record of fast and successful deployments of new NVIDIA technologies.”
Shares of Super Micro Computer advanced 3% Friday morning and are up nearly 50% this year. Nvidia shares edged higher in recent trading and have added a third of their value in 2025.
Warner Bros. Discovery Stock Extends Surge on Paramount Skydance Takeover Reports
4 hr 31 min ago
Shares of Warner Bros. Discovery (WBD) shot up for a second straight session Friday on reports rival Paramount Skydance (PSKY) was preparing to make a bid to take over its media rival.
The Wall Street Journal was the first to report the story, saying the deal was backed by the Ellison family. David Ellison is Paramount Skydance CEO, and his father is Oracle (ORCL) co-founder and billionaire Larry Ellison.
The newspaper noted that Paramount’s majority cash bid would be for all of Warner Bros. Discovery, including its cable networks and movie studio. It added that an offer hasn’t yet been made, and the plans could fall apart.
Victor J. Blue/Bloomberg via Getty Images
Warner Bros. Discovery shares closed 29% higher yesterday following the initial report, and were up a further 10% soon after the opening bell. Paramount Skydance shares advanced more than 3% Friday morning. Both are significantly higher this year.
In June, Warner Bros. Discovery announced it intended to split into two companies, one made up of its studios and HBO Max streaming service, while the other would own its cable channels like CNN and TNT. The Journal pointed out that the move by Paramount was aimed at pre-empting a potential bidding war for Warner’s studios and streaming service.
Paramount Skydance was created last month after David Ellison’s Skydance Media completed its $8 billion takeover of Paramount Global.
Stock Futures Mostly Lower to Round Out Week Near Record Highs
5 hr 26 min ago
Futures contracts connected to the Dow Jones Industrial Average were down about 0.2% in premarket trading on Friday.
S&P 500 futures were off less than 0.1%.
Nasdaq 100 futures ticked up about 0.1%.
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