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Tag: Wedbush Securities

  • Wedbush Raises Microsoft Price Target After $2 Trillion Market Cap

    Wedbush Raises Microsoft Price Target After $2 Trillion Market Cap

    Wedbush Securities has raised Microsoft’s target price from $310 to $325 after the company became the third to cross the $2 trillion mark.

    Microsoft made headlines yesterday when it became only the third company to have a market capitalization of $2 trillion, behind Saudi Aramco and Apple. The company has been firing on all cylinders in recent years, thanks to the leadership of CEO Satya Nadella.

    Wedbush has been bullish on Microsoft for some time, largely on the strength of its cloud platform. The firm is once again raising its price arget following yesterday’s news, from $310 to $325 per share.

    “While many tech stocks overall are all being lumped together as part of the WFH trade, we believe the growth story at Microsoft is not slowing down as more enterprises/governments head down this cloud path over the coming years,” Wedbush analyst Dan Ives wrote, via TheStreet.

    TheStreet’s Jim Cramer echoed those sentiments, believing Microsoft’s shares are still undervalued. He said the company “has moved up on a delayed action to its great quarter. It remains inexpensive despite its historic growth rate and its consistency. And do I care that [CEO Satya Nadella] was named chairman? Hey, listen, we have stocks that go up like that, naming guys chairman every day of the week.”

  • China May Push Tesla Over Its 500,000 Vehicle Goal

    China May Push Tesla Over Its 500,000 Vehicle Goal

    Demand for Teslas in China could help push the company over its 2020 goal of selling 500,000 vehicles, according to one analyst.

    Many were skeptical that Tesla could achieve the goal it set for itself when it announced it was planning on shipping 500,000 vehicles in 2020. Undeterred, the company reiterated its goal during its third-quarter earnings call.

    According to Business Insider, Wedbush Securities analyst Dan Ives believes China is the key to Tesla’s goal. In November, Tesla sold some 22,000 vehicles in China. If that demand continues in December, it should be enough to push the company past the 500,000 mark.

    “We believe the company is tracking to another strong month of December in China which could be the tipping point to get Musk & Co. to hit/exceed its 500k annual delivery target, an achievement not even on the map for the Street going back to the late spring/summer timeframe,” Ives said.

    Ives believes Teslas stock could increase as much as 56% to $1,000 a share, in part as a result of China’s demand.

    “The China growth story is worth at least $100 per share in a bull case to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months, along with major battery innovations coming out of Giga 3 and elsewhere throughout the China EV supply chain,” Ives added.

  • Lyft Hopes To Finally End ‘Living Under a Cloud’

    Lyft Hopes To Finally End ‘Living Under a Cloud’

    “What we’re expecting is that other states might have otherwise been teed up to try to replicate AB5,” says Lyft’s Chief Policy Officer Anthony Foxx. “What we want to do is engage in discussions with leaders of states who maybe had considered that and to try to talk about a different model, a different way to pursue what we all want. We want to make sure that the drivers are well taken care of, not only when they’re driving but before and after. Also, we want to make sure there’s clarity and certainty in this industry so that it’s not living under a cloud.”

    California Assembly Bill 5 (AB5), was overturned by the people in regards to ridesharing with the passage of Proposition 22 Tuesday. AB5 was passed by the Democrat-controlled state legislature and signed by California Governor Gavin Newsom in September 2019 as a favor to both the taxi industry and unions who heavily finance Democrat campaigns. AB5 required companies that hire independent contractors to reclassify them as employees. The bill would have made it financially impossible according to Uber and Lyft for them to operate in California. Unfortunately, Proposition 22 did not change AB5’s ban on independent contractors in other industries.

    Lyft’s Chief Policy Officer Anthony Foxx Hopes To Finally End ‘Living Under a Cloud’

    “This was massive in terms of almost an existential business risk to these models in terms of the gig economy,” says Dan Ives of Wedbush Securities. “It could have been a $500 million incremental expense to Uber a $150 million for Lyft. In my opinion, they’re really popping the champagne today because this was really a best-case outcome. It was a dark cloud over the gig economy in these stocks and I think worth potentially 15 to 20 percent to ultimately where I see the valuations.”

    “What was really the crux of the issue is the worry of the street that this was going to be a pandora’s box situation, a ripple effect across cities and states,” added Ives. “The fact that the voters in California approved this was really a seminal moment. From the beginning, really the last year and a half, it’s been a head-scratcher in terms of what this could have done not just to the gig economy. Of the hundreds of drivers that we’ve talked to, 95 percent of them were against the AB5. This is definitely a sigh of relief early this morning for investors as well as for the drivers themselves.”

    Dan Ives: This was an existential business risk to these models in terms of the gig economy.