Stocks rose Monday as technology stocks rebounded from last week's losses ahead of a high-stakes week of earnings, with Meta Platforms, Netflix, and Tesla all set to report.
Datadog gained 6.5% to $263.20 and was the best-performing stock in the S&P 500 for the trading session. Bernstein upgraded the cloud monitoring company to Outperform from Market Perform and raised its price target to $350 from $237, implying 42% upside from its closing price of $247.11 on Friday. The firm believes AI tailwinds will likely boost the stock.
Sandisk advanced 6% and also among the best-performing components in the S&P 500 on Monday.
Marvell Technology, Advanced Micro Devices, Coherent, Corning, Lumentum, and Super Micro Computer Inc. also were artificial-intelligence-related stocks that were rising Monday after last week's brutal selloff.
Intel gained 3.4% to $92.84 after J.P. Morgan upgraded the stock to Neutral from Underperform while maintaining a $85 price target, saying the risk/reward for Intel is more balanced with the stock near its price target after falling over 14% last week.
CoreWeave fell 1% to $60.75 after rising as high as $65.92 intraday. Shares plummeted 25% last week as yields on its debt soared, rattling investors because of how closely the cloud-computing company's fortunes have been tied to the AI boom. Goldman Sachs upgraded CoreWeave to Buy from Neutral but lowered its price target to $106 from $139. The firm believes CoreWeave's business of selling AI compute is in a strong position and that the shares are well differentiated from other of the so-called neocloud stocks.
Tesla rose 4% to $368.15. Shares of the electric-vehicle maker dropped 2.1% on Friday as even its flying car wasn't enough to lift the AI doom and gloom. Tesla reports third-quarter earnings after the closing bell Wednesday.
SpaceX stock was up 1.9% after Elon Musk said he would give one of his shares in the company to every child in the U.S. next year. "This will be the first of many," he said in a post on X. SpaceX reports earnings after the closing bell Tuesday as speculation continues to swirl around when Tesla and SpaceX might merge into one company.
Amazon rose 5% to $262.60. Morgan Stanley raised Amazon's price target to $350 from $335 and made the stock a "top pick." The firm thinks Amazon is a key AI winner even as Meta Platforms' consumer AI agent Muse threatens traditional e-commerce.
Cleveland-Cliffs surged 16% after reporting stronger-than-expected guidance for next year. The company expects 2027 adjusted Ebitda to exceed $4 billion, well above Wall Street projections of $2.5 billion. CEO Lourenco Goncalves says 50% tariffs on raw steel have supported the domestic industry by raising prices and reducing imports.
NRG Energy and Mosaic declined 4.3% and 4%, respectively, and were the two worst-performing stocks in the S&P 500 for the trading session.
Comments