Watch: Tesla, Microsoft and CGI

With Elon Musk keen to acquire Twitter for US$44 billion, Tesla shareholder concerns put the stock under pressure on Tuesday, sending it down more than 12% on the Nasdaq. (Photo: Getty Images)

What to do with titles from Tesla, Microsoft and CGI? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from the one expressed.

Tesla (TSLA, US$881.51): With Twitter comes concerns over possible distractions

With Elon Musk keen to acquire Twitter for US$44 billion, Tesla shareholder concerns put the stock under pressure on Tuesday, sending it down more than 12% on the Nasdaq.

Analyst Daniel Ives of Wedbush Securities sees two major reasons that Tesla shareholders may be worried about. First, Elon Musk will have to sell part of his stake in the electric vehicle maker to fund the US$21 billion equity portion planned for the purchase of Twitter.

“There is a lot of confusion right now about whether Elon Musk will team up with equity firms to fund the Twitter purchase or whether he will decide to go it alone,” the analyst wrote.

“Understandably, this caused a dark cloud to appear over Tesla’s stock as it became the focus of bearish investors’ attention towards the automaker,” he adds.

Daniel Ives points out that the purchase of Twitter will never be ideal for the shareholders of Tesla, whose title will have to bear the weight of the purchase of the social network through its financing mechanisms.

Second, there are concerns surrounding Elon Musk, with the risk of his attention being drawn in all directions with Twitter, Tesla and SpaceX. The analyst isn’t too worried about these possible distractions, however, as he doesn’t expect Elon Musk to become Twitter’s next CEO, but to become chairman of the board, which will be less of a hassle for him. of time.

Daniel Ives says Elon Musk is both the heart and lungs of Tesla, and the Twitter purchase has made the electric car maker look like a morning after.

It nevertheless reiterates its recommendation of “outperformance” on the stock and its target price over one year of US$1,400.

Microsoft (MSFT, US$283.22): Better than feared

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