4 Best Leveraged ETFs of Last Week
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2024
0mins
Source: NASDAQ.COM
Market Performance: Wall Street experienced mixed results last week, with the S&P 500 down 0.6%, Dow Jones down 1.8%, and Nasdaq up 0.3%. Key inflation reports indicated a rise in consumer prices, leading to increased expectations for a rate cut by the Federal Reserve.
Top Performing ETFs: Tesla's stock surged 9.6% after hitting an all-time high, while Broadcom reported record earnings, causing its shares to jump 24.4%. Other notable ETFs included those tracking Alphabet and consumer discretionary sectors, reflecting strong investor confidence and optimism in the market.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 381.590
Low
25.28
Averages
401.93
High
600.00
Current: 381.590
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SpaceX Aims for Record IPO Valuation
- Fundraising Target: SpaceX aims to raise $75 billion through its IPO by selling 555.6 million shares at $135 each, achieving a valuation of $1.77 trillion, making it the seventh most valuable U.S. company, surpassing Tesla.
- Valuation Challenges: Former Tesla board member Steve Westly stated that pricing SpaceX's IPO will be difficult due to its three disparate core businesses, particularly noting that the Starlink satellite internet service is the only profitable unit, necessitating at least two successful 'moonshots' to maintain its high valuation.
- Merger Possibility: Westly mentioned that a merger between SpaceX and Tesla is 'absolutely likely' in the future, highlighting that both companies already share numerous resources, although such a merger would face governance issues, yet the chances of success remain high.
- Market Reaction: SpaceX's IPO is set to become the largest in history, with the market eagerly anticipating its future developments, especially under Musk's diversified business strategy, which may further expand its range of operations.
See More
Tesla Gains Approval for FSD Software in Europe
- Regulatory Approval Progress: Belgium and Denmark have approved Tesla's Full Self-Driving Supervised software, marking a significant step forward for Tesla in the European market, particularly in regions where regulation typically moves slowly, showcasing the company's efforts in driving technology compliance.
- Market Access Expansion: Belgium's approval makes it one of the EU countries to authorize the system, joining the Netherlands, Lithuania, Estonia, and Denmark, thereby enhancing Tesla's competitive position in Europe and its ability to collect real-world driving data.
- Software Commercialization Potential: Tesla is striving to prove that software can become a crucial part of its business, especially as competition in electric vehicles intensifies; this approval provides more market opportunities and real-world driving data for the company.
- Future Outlook: As Tesla expands in Europe, investors should watch for approvals from more countries for the FSD Supervised software, which will have significant implications for Tesla's market strategy and long-term growth potential.
See More
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- IPO Financing Goal: SpaceX aims to raise $75 billion through its initial public offering by selling 555.6 million shares at $135 each, resulting in a valuation of $1.77 trillion, making it the seventh most valuable company in the U.S., surpassing Tesla.
- Success Key Factors: Former Tesla board member Steve Westly noted that SpaceX must achieve at least two of its three 'moonshots' to maintain its $2 trillion valuation, indicating that the company's future growth potential is closely tied to the success of its core businesses.
- Diversification Challenges: SpaceX's operations include reusable rockets, the Starlink satellite internet service, and xAI, the latter being the only profitable unit; Westly believes the diversity of these businesses complicates IPO pricing, potentially affecting investor confidence.
- Merger Speculation: Rumors suggest that Musk may merge Tesla with SpaceX, with Westly stating that such a merger is 'absolutely likely,' which could raise governance issues but also create greater synergies, enhancing the company's competitive position in the market.
See More
Options Market Heats Up Ahead of SpaceX IPO
- Surge in Options Trading: Ahead of SpaceX's IPO, options trading volumes for related stocks have skyrocketed, with EchoStar's shares rising 11% and options volume exceeding 11 times the 30-day average, indicating strong market interest in SpaceX.
- Strong Performance by AST SpaceMobile: AST SpaceMobile's stock jumped 12%, with options trading nearing $140 million, reflecting investor optimism about its future collaboration with SpaceX, which could enhance its market share.
- ETF Demand Driving Prices: Space-focused ETFs like Procure's 'UFO' and Defiance's 'JEDI' have surged 119% and 35% over the past year, respectively, leading to increased demand for related stocks and driving up prices, showcasing the market's enthusiasm for space investments.
- Retail Investor Participation: SpaceX's options trading is expected to attract a significant number of retail investors, with the IPO priced at $135 per share, creating an ideal trading environment due to high volatility and public interest, potentially making it one of the most actively traded names among retail investors.
See More
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- Hedge Fund Activity: According to a JPMorgan report, many hedge funds sold off major U.S. tech stocks and even added bearish positions ahead of SpaceX's IPO, indicating a cautious market sentiment towards tech equities.
- Tech Stock Decline: Since last Friday, the so-called 'Magnificent Seven' tech stocks, including Nvidia, Apple, and Amazon, have all declined, with the Roundhill Magnificent Seven ETF dropping over 2.4% since June 5, reflecting investors' preparations for SpaceX's debut.
- SpaceX IPO Outlook: SpaceX is projected to post a net loss of $4.94 billion in 2025, yet its IPO targets a valuation of $1.77 trillion, which would make it the seventh-largest publicly traded U.S. company, showcasing market expectations for its future growth.
- Shifting Market Sentiment: Analysts note that investors are clearing their portfolios in anticipation of SpaceX's IPO, a dynamic that may impact the short-term performance of other tech stocks, reflecting a heightened focus on emerging tech companies.
See More
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- IPO Pricing and Market Reaction: SpaceX priced its IPO at $135 per share, set to begin trading on Nasdaq on Friday, raising $75 billion and achieving a valuation of $1.77 trillion, positioning it among the world's most valuable companies, reflecting strong market confidence in its growth potential.
- Comparison with Cerebras: Jim Cramer emphasized that the ideal outcome for SpaceX's IPO would be a 25-30% first-day gain to avoid the drastic post-debut decline seen with Cerebras, highlighting the importance of stable ownership to promote long-term investment.
- Market Expectations and Risks: Dan Ives from Wedbush stated that the SpaceX IPO is not only a milestone for the company but also a pivotal moment for Elon Musk, although there are doubts about its $1.75 trillion valuation, with some analysts suggesting its actual value may be significantly lower than the offering price.
- Industry Impact and Future Outlook: Ives noted that the success of SpaceX will have ripple effects across the tech industry, particularly in data and AI, with an expected merger probability between Tesla and SpaceX exceeding 80%, further bolstering investor confidence in Musk.
See More
SpaceX Aims for Record IPO Valuation
- Fundraising Target: SpaceX aims to raise $75 billion through its IPO by selling 555.6 million shares at $135 each, achieving a valuation of $1.77 trillion, making it the seventh most valuable U.S. company, surpassing Tesla.
- Valuation Challenges: Former Tesla board member Steve Westly stated that pricing SpaceX's IPO will be difficult due to its three disparate core businesses, particularly noting that the Starlink satellite internet service is the only profitable unit, necessitating at least two successful 'moonshots' to maintain its high valuation.
- Merger Possibility: Westly mentioned that a merger between SpaceX and Tesla is 'absolutely likely' in the future, highlighting that both companies already share numerous resources, although such a merger would face governance issues, yet the chances of success remain high.
- Market Reaction: SpaceX's IPO is set to become the largest in history, with the market eagerly anticipating its future developments, especially under Musk's diversified business strategy, which may further expand its range of operations.
See More
Tesla Gains Approval for FSD Software in Europe
- Regulatory Approval Progress: Belgium and Denmark have approved Tesla's Full Self-Driving Supervised software, marking a significant step forward for Tesla in the European market, particularly in regions where regulation typically moves slowly, showcasing the company's efforts in driving technology compliance.
- Market Access Expansion: Belgium's approval makes it one of the EU countries to authorize the system, joining the Netherlands, Lithuania, Estonia, and Denmark, thereby enhancing Tesla's competitive position in Europe and its ability to collect real-world driving data.
- Software Commercialization Potential: Tesla is striving to prove that software can become a crucial part of its business, especially as competition in electric vehicles intensifies; this approval provides more market opportunities and real-world driving data for the company.
- Future Outlook: As Tesla expands in Europe, investors should watch for approvals from more countries for the FSD Supervised software, which will have significant implications for Tesla's market strategy and long-term growth potential.
See More
SpaceX Plans IPO Valued at $1.77 Trillion
- IPO Financing Goal: SpaceX aims to raise $75 billion through its initial public offering by selling 555.6 million shares at $135 each, resulting in a valuation of $1.77 trillion, making it the seventh most valuable company in the U.S., surpassing Tesla.
- Success Key Factors: Former Tesla board member Steve Westly noted that SpaceX must achieve at least two of its three 'moonshots' to maintain its $2 trillion valuation, indicating that the company's future growth potential is closely tied to the success of its core businesses.
- Diversification Challenges: SpaceX's operations include reusable rockets, the Starlink satellite internet service, and xAI, the latter being the only profitable unit; Westly believes the diversity of these businesses complicates IPO pricing, potentially affecting investor confidence.
- Merger Speculation: Rumors suggest that Musk may merge Tesla with SpaceX, with Westly stating that such a merger is 'absolutely likely,' which could raise governance issues but also create greater synergies, enhancing the company's competitive position in the market.
See More
Options Market Heats Up Ahead of SpaceX IPO
- Surge in Options Trading: Ahead of SpaceX's IPO, options trading volumes for related stocks have skyrocketed, with EchoStar's shares rising 11% and options volume exceeding 11 times the 30-day average, indicating strong market interest in SpaceX.
- Strong Performance by AST SpaceMobile: AST SpaceMobile's stock jumped 12%, with options trading nearing $140 million, reflecting investor optimism about its future collaboration with SpaceX, which could enhance its market share.
- ETF Demand Driving Prices: Space-focused ETFs like Procure's 'UFO' and Defiance's 'JEDI' have surged 119% and 35% over the past year, respectively, leading to increased demand for related stocks and driving up prices, showcasing the market's enthusiasm for space investments.
- Retail Investor Participation: SpaceX's options trading is expected to attract a significant number of retail investors, with the IPO priced at $135 per share, creating an ideal trading environment due to high volatility and public interest, potentially making it one of the most actively traded names among retail investors.
See More
Hedge Funds Exit Major U.S. Tech Stocks
- Hedge Fund Activity: According to a JPMorgan report, many hedge funds sold off major U.S. tech stocks and even added bearish positions ahead of SpaceX's IPO, indicating a cautious market sentiment towards tech equities.
- Tech Stock Decline: Since last Friday, the so-called 'Magnificent Seven' tech stocks, including Nvidia, Apple, and Amazon, have all declined, with the Roundhill Magnificent Seven ETF dropping over 2.4% since June 5, reflecting investors' preparations for SpaceX's debut.
- SpaceX IPO Outlook: SpaceX is projected to post a net loss of $4.94 billion in 2025, yet its IPO targets a valuation of $1.77 trillion, which would make it the seventh-largest publicly traded U.S. company, showcasing market expectations for its future growth.
- Shifting Market Sentiment: Analysts note that investors are clearing their portfolios in anticipation of SpaceX's IPO, a dynamic that may impact the short-term performance of other tech stocks, reflecting a heightened focus on emerging tech companies.
See More
SpaceX IPO Marks a Pivotal Moment for Elon Musk
- IPO Pricing and Market Reaction: SpaceX priced its IPO at $135 per share, set to begin trading on Nasdaq on Friday, raising $75 billion and achieving a valuation of $1.77 trillion, positioning it among the world's most valuable companies, reflecting strong market confidence in its growth potential.
- Comparison with Cerebras: Jim Cramer emphasized that the ideal outcome for SpaceX's IPO would be a 25-30% first-day gain to avoid the drastic post-debut decline seen with Cerebras, highlighting the importance of stable ownership to promote long-term investment.
- Market Expectations and Risks: Dan Ives from Wedbush stated that the SpaceX IPO is not only a milestone for the company but also a pivotal moment for Elon Musk, although there are doubts about its $1.75 trillion valuation, with some analysts suggesting its actual value may be significantly lower than the offering price.
- Industry Impact and Future Outlook: Ives noted that the success of SpaceX will have ripple effects across the tech industry, particularly in data and AI, with an expected merger probability between Tesla and SpaceX exceeding 80%, further bolstering investor confidence in Musk.
See More
