Tesla’s Earnings Divide Wall Street
Tesla shares surged 10% after its quarterly earnings announcement, but analysts remain cautious. The electric vehicle maker missed revenue and earnings estimates, with revenue declining 9%, its steepest annual drop since 2012. However, Goldman Sachs noted that the report exceeded low investor expectations and that Tesla’s plans for a lower-cost model could mitigate growth concerns. UBS and Wells Fargo maintained neutral and underweight ratings, citing concerns about vehicle volumes, AI pivot, and demand pressure.
Citi Upgrades Amazon, Citing Profitability
Citi raised its price target on Amazon to $235, implying a 31% upside. Analyst Ronald Josey maintained a buy rating, citing increased operating income projections and strong top-line trends. Key areas of focus include e-commerce strength, Amazon Web Services demand, and retail margin expansion. Citi believes faster shipping speeds and a regionalized approach are improving conversion rates.
Mizuho Upgrades Airbnb, Betting on Gains
Mizuho upgraded Airbnb to buy, with a new price target of $200. Analyst James Lee cited potential double-digit EBITDA upside from sponsored listings, de-risked room night growth expectations, and opportunities for growth from the Summer Olympics and increased hotel pricing. Airbnb shares have soared 18.2% this year.
These analyst calls underscore the ongoing debate on Wall Street, with mixed views on Tesla’s prospects and bullish sentiment towards Amazon and Airbnb.
