On Tuesday, the stock meltdown continued. It has now set the three major indices up for a third straight session of losses as the tech selloff continued. Even blockbuster Tesla Inc (NASDAQ: TSLA) saw its stock plummet 17 percent.
Big Tech – Third Consecutive Day Of Meltdown
Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL) and Netflix Inc (NASDAQ: NFLX) saw its shares drop further 3% at the very least. As a consequence of these negative movements, NASDAQ sank 3.3% just shortly after the opening bell.
There Is More To The Pharmaceutical Race Than Speed
On Tuesday morning, the CEOs of vaccine candidates wrote a public letter where they vowed to make safety of the vaccines their top-priority, despite being pressured with time. The letter was signed by AstraZeneca plc (NYSE: AZN), Johnson & Johnson (NYSE: JNJ) and Moderna Inc (NASDAQ: MRNA). It remains to be seen if this will be enough to put concerns to rest and amend the trend of vaccine hesitancy.
Entry Ticket To Space Drove Virgin Galactic Higher
Virgin Galactic Holdings Inc (NYSE: SPCE) shares rose 2% after UBS gave it a Buy rating, citing first-mover advantage. Despite falling by almost a third since the beginning of August, shares of Virgin Galactic managed to rise 38% for the year to date. It just shows that a ticket to space never gets old.
Tesla Was Hit Both By S&P Exclusion As Well As Nikola
Tesla had the worst drop since March's lows after two unpleasant surprises that caused its shares to slide 16% shortly after markets opened on Tuesday. First, on late Friday, the blue-chip committee announced the stock will not be included in the S&P 500 despite ticking all the boxes. Second, its competitor Nikola Corporation (NASDAQ: NKLA) entered into a game-changing partnership with General Motors Company (NYSE: GM). GM acquired an 11 percent stake in the company which amounts to $2 billion. Nikola now has access to GM's battery infrastructure to produce its Badger that is set to compete directly with Tesla's Cybertruck, along with its core line of semi-trucks. But GM also won a ticket to the EV era.
What also contributed to the negative sentiment is the dilution of shares. Also on Tuesday, Tesla announced it had completed a $5 billion share sale as of Friday. The settlement of shares sold is expected to be completed by Wednesday.
Outlook
Although we had a long Labor Day weekend, Tuesday was everything but calm seas. Considering we are still far from winning COVID and scientists warn of a potential wave during winter months, this blockbuster year is still being written. Fasten your seatbelts, as a lot more things will happen before we get to fly to space and entirely switch to electric vehicles.
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Tech Stocks Continued To Tumble On Tuesday - Benzinga
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