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1 Stock To Buy, 1 To Dump When Markets Open: Tesla, Didi Global

By Investing.com (Jesse Cohen/Investing.com)Stock MarketsJan 02, 2022 07:01AM ET
www.investing.com/analysis/1-stock-to-buy-1-to-dump-when-markets-open-tesla-didi-global-200613341
1 Stock To Buy, 1 To Dump When Markets Open: Tesla, Didi Global
By Investing.com (Jesse Cohen/Investing.com)   |  Jan 02, 2022 07:01AM ET
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Stocks on Wall Street ended their final trading session of 2021 lower on Friday, with the S&P 500 capping off a record-setting year despite risks related to the Federal Reserve’s tightening path and the ongoing COVID health crisis.

SPX Daily Chart
SPX Daily Chart

The week ahead is expected to be busier than usual, with all eyes on Friday’s U.S. employment report, plus release of the Minutes from the Federal Reserve’s most recent policy meeting also on the agenda.

No matter which direction the market goes as we start the new year, we've highlighted one stock likely to be in demand in the coming days and another which could see fresh losses. 

Remember though, our timeframe is just for the week ahead.

Stock To Buy: Tesla

After scoring a gain of roughly 50% in 2021, Tesla (NASDAQ:TSLA) shares look set to kick off the new year right where they left off, as the electric vehicle maker gets set to report record fourth quarter delivery figures. Q3 saw Tesla's revenue reach $13.76 billion, slightly below analyst estimates, but, EPS soared, coming in at $1.86, beating the $1.62 estimate.

While the Elon Musk-led company usually reveals the all-important numbers on the second day of a quarter—regardless of weekends—it is possible they could arrive on Monday morning due to the New Year holiday.

The EV pioneer company is expected to have shipped 276,900 vehicles over the three months ending in December, improving nearly 15% from the preceding quarter and up 53% from the same period last year.

That includes 261,400 Model 3 and Y vehicles and 15,500 Model S and X vehicles, as sales boom despite pandemic-related supply-chain issues and a global chip shortage.

If confirmed, the Q4 numbers would represent a new all-time high for the world’s most valuable automaker. The previous high was notched in Q3 of 2021, when Tesla delivered 241,300 vehicles.

Additionally, the EV maker—which recently moved its headquarters from Silicon Valley's Palo Alto, California to Austin, Texas—will also release full-year delivery figures. After shipping a total of 499,550 vehicles in 2020, analysts expect Tesla to report 2021 annual deliveries north of 900,000 units.

TSLA Daily Chart
TSLA Daily Chart

TSLA shares ended Friday’s session at $1,056.78, roughly 15% below their all-time high of $1,243.49 touched on Nov. 4, giving the EV company a market cap of $1.06 trillion.

At current valuations, Tesla is the world’s largest automaker, bigger than names such as Toyota (NYSE:TM), Daimler (OTC:DDAIF), General Motors (NYSE:GM), Honda (NYSE:HMC), and Ford (NYSE:F).

Stock To Dump: Didi Global

After plunging 65% in 2021, shares of Didi Global (NYSE:DIDI), the largest ride-hailing firm in China, look set to remain under pressure as investors fret over the lingering impact of several negative factors dogging the tech company, often referred to as the ‘Uber of China.'

DIDI stock—which has fallen nearly 35% in the last month—sank to an all-time low of $4.74 on Friday, before closing the session at $4.98. It now stands more than 70% below its all-time high of $16.89 touched on July 1.

At current levels, the Beijing-based ride-sharing service, which made its debut on the NYSE on June 30 after going public at $14 per share, has a market cap of roughly $24 billion.

DIDI Daily Chart
DIDI Daily Chart

Sentiment on the out-of-favor name has taken a hit as investors dumped Chinese tech shares due to an ongoing months-long campaign by Chinese authorities aimed at reining in the influence of the country’s thriving Internet companies.

Indeed, Didi—co-founded in 2012 by former Alibaba (NYSE:BABA) employee Will Wei Cheng and backed by SoftBank Group (OTC:SFTBY)—reported dismal third-quarter financial figures last week, hurt by falling revenue and higher regulatory costs over its handling of customer data.

China’s ruling Communist Party has placed severe restrictions on Didi in response to its decision to hold its IPO in New York earlier last year, ordering the ride-hailing giant to remove its app from online app stores.

Ultimately, Didi announced in December that it will delist from the NYSE and pursue a listing on the Hong Kong Stock Exchange instead, a move aimed at appeasing Chinese regulators. According to reports, Didi aims to file for the Hong Kong listing by the end of April and list by June.

1 Stock To Buy, 1 To Dump When Markets Open: Tesla, Didi Global
 

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1 Stock To Buy, 1 To Dump When Markets Open: Tesla, Didi Global

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Comments (9)
vincent li
vincent li Jan 21, 2022 11:02AM ET
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yes, i would buy didi..dump tesla for sure
Joseph Obrzut
jzut Jan 02, 2022 5:51PM ET
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Wasn't TSLA recently on the "one stock to dump" list?
Brian Ok
Brian Ok Jan 02, 2022 5:51PM ET
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so we have to think the opposite of this analysis?
Chopin Liszt
Chopin Liszt Jan 02, 2022 12:26PM ET
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is must be really hard being wrong almost every week.
clayton park
clayton park Jan 02, 2022 12:26PM ET
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Grant McBride
Grant McBride Jan 02, 2022 11:24AM ET
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Buy High, Sell Low. Sounds like a great strategy
Harun Shaikh
Harun Shaikh Jan 02, 2022 11:24AM ET
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hibrandclue fashion
hibrandclue fashion Jan 02, 2022 11:12AM ET
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tesla
Jim Hernandez
Jim Hernandez Jan 02, 2022 11:09AM ET
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didi will reset and come back by q4 2022. some look at news as bad, I see opportunity.
Kiron Bramble
Kiron Bramble Jan 02, 2022 11:06AM ET
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If you think tesla is cheap or fairly valued then valuation’s no longer matter.
Geetha Mehta
Geetha Mehta Jan 02, 2022 10:45AM ET
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TSLA 👍
Ali Sibaii
Ali Sibaii Jan 02, 2022 10:45AM ET
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Tesla
me ish
me ish Jan 02, 2022 10:45AM ET
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utter joke about Tesla - great company but the shares are just simply way overpriced and it's gonna cost an arm and a leg to recall millions of vehicle and it will cost Tesla its reputation also as the cars are not nearly as reliable as VW or BMW or the whole host of Japanese cars - all producing excellent EVs now - with the global slowdown and heading into a recession in the next twelve months, these shares are a dump - not a buy!
Jan 02, 2022 10:45AM ET
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me ish they just delievered a record breaking cars for 4th quartersYoure brainwashed by your gurus on wall street … Tesla will reach $2000 by end of January
Jan 02, 2022 10:45AM ET
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me ish this inflation wishhobs is getting out of hands!!…
Jack Bquick
Jack Bquick Jan 02, 2022 8:34AM ET
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Didi is junk stock.
 
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