13th March, 2024 – The Dow Jones Industrial Average increased by 0.1% on Wednesday, while the S&P 500 and Nasdaq fell by 0.19% and 0.54%, respectively
Tesla’s (TSLA) stock price dropped by 5% after Wells Fargo downgraded its rating to underweight from equal weight. They also lowered its price target to 125$ from 200$. Colin Langa, an analyst from Wells Fargo mentioned the cooling EV market and the increasing competition as primary reasons. Langa also cited that despite the price cuts, the demand is not increasing which may lead to a decrease in profitability. Since the beginning of 2024, Tesla has lost 30% of its value, bringing the share price from $245 to $170.
One of our portfolio holdings, Eli Lilly (LLY) (Purchased 0.2 units @ $582.99), announced a partnership with Amazon (AMZN) to deliver prescription drugs directly to consumers through Amazon Pharmacy. This means an expansion for the direct-to-consumer (DTC) business of Eli Lilly and Amazon further increasing its presence in the healthcare industry.
One of our portfolio holdings, Boeing (BA) (Purchased 0.15 units @ $248.79), had a ‘technical event’ (according to LATAM) that led their LATAM 787 Dreamliner flying from Australia to New Zealand experiencing a sudden mid-air drop, injuring passengers. The pilot regained control and landed safely, but the cause of the incident remained unknown. This year has been a tough year for Boeing investors, they have also recently experienced the door incident mid-air which led to sell-off. Investors also reacted to today’s news negatively which ended up as a 3% decrease. This year, Boeing (BA) lost a third of their stock value, now trading at $180 compared to $260 year start.
Author: Kaan Pinar