TESLA

Tesla stock could rise for the eleventh day on June 09!

TSLA shares advanced 28.41% in ten days, with the Thursday session printing 4.58% gains. It might extend its bullish movement on June 09 and open the day with a 5.04% gap up to $246.69. Prices are projected to retest a nine-month high of $290.00 apiece in the short to near term.

WHY?

Tesla CEO Elon Musk regained the top spot of the world’s wealthiest men on June 09. His net worth climbed to $220.20 billion, topping Louis Vuitton Malletier chief Bernard Arnault. The $6.70 billion increment in Musk’s fortune followed the announcement from General Motors.

On Thursday, the Michigan-based automaker said it inked a deal with Tesla to use its charging station network. It followed Ford’s move to adopt the EV manufacturer’s Charging Standard connector. Currently, rivaling carmakers use adaptors to access Tesla Superchargers.

The world’s biggest electric car company by valuation has 17,000 Superchargers in America. It represents 31.48% of the 54,000 EV charging stations currently installed in the country.

General Motors and Ford’s decisions could make Tesla’s connector an industry standard. It could also open opportunities for the latter to expand its revenue stream and partner with competitors.

In doing so, the automakers would be dependent on Tesla Superchargers. Not to mention, it might qualify for the $7.50 billion government grant by building more charging stations.

For GM and Ford, the deal was a strategic move as they aim to become fully electric in the coming years. Ford’s flagship electric vehicle is F-150 Lightning and Mustang Mach-E. Meanwhile, General Motors’ commercialized electric car was Chevrolet Bolt EV.

In other news, Tesla was reported to be in talks with Spain for an automotive investment.

Analyst Recommendations:

Tesla’s dominance in electric vehicles and charging station networks led analysts to issue a ‘Buy’ recommendation for its stock.

Success Rate:

Investors with a ‘Buy’ position on TSLA have a winning rate of 34.71%.

 

 

DOCUSIGN

DOCU shares might jump to a three-month high on Friday’s opening bell!

DocuSign shares could break out of a ‘Falling Wedge’ resistance line on June 09’s trading. The price rebound from $56.00 and Relative Strength Index’s recovery above the 60-level supported the bullish bias. It needs to soar past $61.48 to extend the rally toward 2023’s peak near $70.00.

WHAT HAPPENED?

The cloud-based electronic signature entity published its first quarter financial results for fiscal 2024. For the three-month period ending April, DocuSign earned $0.72 per share and generated $661.40 million in revenue. Both figures beat Wall Street estimates to print all-time high records.

On a quarterly basis, profits improved by 10.77%. Meanwhile, the latest result in EPS indicates a year-over-year growth of 89.47%. Likewise, sales logged net changes of 0.27% and 12.35%. The bottom never missed forecasts since DocuSign’s initial public offering on April 27, 2018.

In a more detailed revenue breakdown, billings for the quarter rose 10.00% to $674.80 million. Meanwhile, subscriptions improved by 12.00% as professional services jumped by 14.00%.

DocuSign’s second quarter and full-year guidance also impressed market participants. For Q2, the California-based company predicts revenue between $675.00 to $679.00 million. It is higher than the projected sales of $667.70 million, indicating a new record high.

For the whole year, the software business sees the bottom line at $2.71 billion to $2.73 billion.

DocuSign is also joining the artificial intelligence bandwagon. It plans to introduce generative AI features to its contract management software by the end of the year.

In other news, it announced new hires as part of its management shakeup. Dmitri Krakovsky is DocuSign’s new Chief Product Officer and Kurt Sauer is Chief Information Security Officer.

Analyst Recommendation:

DocuSign’s effort to turn around the business after valuation fell 81.00% from covid peak earned a ‘Buy’ guidance from financial experts.

Success Rate:

Going long on DOCU stock has a 25.68% chance of earning profits.

 

 

 

USDCNY

USDCNY reversed Thursday’s loss on its June 09 session!

The United States dollar versus the Chinese yuan pair is exchanging hands at 7.1218 by press time. It is up by 0.16%, recouping some losses from the June 08 trading. Prices need to move past the 7.1500 level before retesting the crucial 15-year high above the 7.30000 level.

WHAT HAPPENED?

China released weaker-than-expected Consumer Price Index and Producer Price Index data on Friday. The month-over-month result suggests deflation at -0.20% in May. It missed the forecast and the previous record of -0.10%, extending the negative record for the fourth month.

Meanwhile, the annualized figure increased by 0.20%. It recovered from last month’s 0.10% hike but was below the projected growth of 0.30% year-over-year.

As for the producer prices, the YoY net change fell to a seven-year low at -4.60%.

The latest results indicate that consumer spending and procurement activities remained weak despite lifting Beijing coronavirus restrictions earlier in 2023.

Such a case was despite China cutting its Reserve Requirement Ratio to 7.60% in March from 7.80% in 2022. Slashing the RRR released $72.60 billion in market liquidity. Economists predict another RRR cut by 25 basis points in the second half of the year as Beijing prioritizes growth.

In doing so, the world’s second-largest economy would unlock $71.00 billion in capital. As such, it would add 0.30% to the country’s gross domestic product (GDP) growth in 2023.

Further cuts in banks’ reserve requirements could also signal an interest rate cut from the PBOC.

Meanwhile, all eyes are now on the Federal Reserve’s interest rate decision next week.

Analyst Recommendation:

China’s slowing economic growth and the US central bank’s hawkish stance are bullish for USDCAD. In turn, analysts offered a ‘Buy’ guidance.

Success Rate:

A ‘Buy’ position on the pair has a 14.12% success rate.

 

 

 

VAIL RESORTS

Vail Resorts’ stock could hit a two-month low on Friday!

MTN shares closed June 08’s session with a 0.73% increase. In turn, it extended the bullish price action for the sixth day. However, Friday’s trading could reverse gains in the last two weeks. Vail Resorts is forecasted to plunge by -5.35 points or -2.07% to $252.69 at the opening bell.

WHY?

Vail Resorts delivered disappointing third-quarter financial results late Thursday. The Colorado-based company earned $8.18 per share on top of $1.24 billion in revenue. Both numbers were below Wall Street’s expectations of $8.80 in profits and $1.27 billion in sales.

Meanwhile, the latest results were mixed on quarterly and annualized comparisons. The EPS improved by 58.53% quarter-over-quarter but fell -10.70% from the same quarter last year. As for the bottom line, the figures were 12.73% and 5.08% higher, respectively.

The diverging metrics were despite the record visitations during the reported quarter. However, Vail Resorts CEO Kirstin Lynch opt not to disclose the numbers for its 37 ski destinations.

In a more detailed breakdown, the Mountain segment, which operates resorts, saw a -0.70% decline on lift revenue to $710.10 million. Meanwhile, the ski school business’ sales rose by 20.00% as dining improved by 27.40%. The rental revenue only grew by 6.70%.

As for the Epic Pass sales for the next winter season, demands are up 6.00% despite the 8.00% increase in prices. Epic Pass now sells at $129.00.

Currently, Vail Resorts has $1.50 billion on its balance sheet. Its CEO said that acquisitions are a top priority for the company, which business performance depends on the weather conditions.

Meanwhile, it lowered its full-year EBITDA outlook from $860.00 million to $853.00 million.

Analyst Recommendation:

The downwardly revised full-year guidance dampens investors’ sentiment on Vail Resorts. Hence, financial experts recommended a ‘Sell’ position on its shares.

Success Rate:

Shorting MTN stock has a 14.46% probability of generating income.