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WeWork pops in SPAC debut, Tesla nears record high after Q3 earnings beat

Yahoo Finance’s Jared Blikre reports on the day's trending tickers.

Video transcript

KARINA MITCHELL: Here for more on markets is our Jared Blikre. What are you watching?

JARED BLIKRE: Well, first up, I'm watching WeWork. Now, this is the end of a two-year saga and probably a little bit more than that. Had you asked me two years ago, do you expect for this company to ever come public, I would have been skeptical, but here it is via a SPAC. And the first thing I want to point out here is that its market cap is $9.1 billion.

Now, this was a company that was valued at $47 billion by SoftBank about two years ago. And Goldman Sachs, during the IPO process, there was a report that they were flirting with something like a $70, $75 billion valuation. So, clearly, this company kind of a shadow of its former self. Of course, the pandemic makes it a very unwise or made it a very unfortunate situation for this company.

But as people return to the office, they are experiencing revenue pickup. I think they had $1.19 billion for the quarter. And this compares to a loss of $3 billion for the first half of the year. So let me change that. It's $1.2 billion in revenue that they took in, they lost $3 billion. That's more than three times what they lost in the same period two years ago. So they do have a long ramp ahead of them to profitability, but they are on the right path right now.

Let's just take a quick look at the intraday price action, and here we go. This is a SPAC that came to market at $10 per share. So at $11.50, that is at a premium to the original price. I also want to point out that Adam Neumann, who is still a billionaire-- he's worth about $2.3 billion-- he will be able to return to the board in a few months to sit as an observer. So I thought that was an interesting tidbit as well. Nevertheless, WeWork has come to market.

ALEXIS CHRISTOFOROUS: That, it has, without Neumann, who we know was ousted, but as you say, could have a second life there at WeWork because I guess that's the way Wall Street works. Got to talk a little Tesla because it's the second top trending ticker on our site today. I know they blew it out with third quarter earnings. The stock is near a record high, but there were some on Wall Street, who were saying, you know what? Tesla is a little too vague about the outlook. Tell us more.

JARED BLIKRE: That's right. Well, you can't please everybody, especially when it comes to the whole panoply of Wall Street analysts. So let's go through some of those notes. First, Morgan Stanley, which rates it an overweight. They have a price target of 900, which is right about where it is right now. They say an annualized EBITDA approaching $13 billion. This is closing in on levels of GM and Ford.

But revenue is just a fraction of those traditional automakers. Really a lot of focus on the margins here. They were able to improve their margins, even though the average selling price decreased by about 6%. Also facing higher labor costs, not to mention the chip shortage.

So all that put together really paints a bullish picture. And we're seeing that outlined or echoed by Wedbush, which rates the stock an outperform. They raised their price target to 1,100 from 1,000, saying, we also believe the scale and scope of Giga Austin will enable Tesla to further expand margins markedly over time and will alleviate the supply bottleneck. They're also seeing China representing 40% of global deliveries for Tesla in 2022.

Now, Alexis, you mentioned some naysayers. JP Morgan rates it an underweight with a price target of $250. Now they did raise that from $210 maybe to align with reality their projections here. But JP Morgan is saying investors it chatted with were looking for an update on the ramp of production in both Austin and Berlin. They still believe that the current valuation of over $800 billion is, quote, "challenging."

Now I want to point out the technicals here on the YFi Interactive. And you can see we came within a hair of the record highs that we had in the beginning of the year. In January 25, on an intraday basis, it hit $900.40. The high today is $900. So a lot of times when you have a stock that's risen very quickly to record highs, sometimes it pauses. That's why we get this little cup and handle formation. Or it could simply blow through, or it could retreat. But I think the momentum is definitely to the upside here, Alexis and Karina.

KARINA MITCHELL: All right, Jared, and we have been talking an awful lot about Bitcoin this week, but it's not the only crypto around. Ethereum making some news on its own as well.

JARED BLIKRE: That's right, Ethereum is making record highs as well. So let's go back to the YFi Interactive. Can see on a rolling 24-hour basis, it's down about a half a percent. And let's dial this into a five-day chart so we can see the price action. So we hit a record and just exceeded it barely and have pulled back.

So this is kind of like the Tesla situation. On a year to date basis, you can see now we have tested this high over here. Might be coming back, might be pulling back for another breakthrough. And it's really looking-- the technicals for Bitcoin looking pretty similar here. We've just barely exceeded the highs-- excuse me, we exceeded the highs by about $4,000 from March. But we are pulling back a little bit after that.

Now, I do want to say, we did get a kind of a flash crash today, not in most of the platforms, but on the Binance exchange. And there was an 87% flash crash in Bitcoin. And somebody got filled at $8,200. Now, $8,200-- you can do the math right here-- a far cry from 62,642. So if you got that fill, call me up and you can take me to lunch.

KARINA MITCHELL: All right, Jared Blikre, thank you so much for that. And--