Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD), one of the hottest stocks on Wall Street this year, may finally be due for a readjustment. AMD, which develops semiconductors and computer processors, has seen its value increase over 140% since the beginning of 2018. Much of this growth was fueled by AMD’s development of its high-tech graphics cards, which have played an important role in cryptocurrency mining.
However, the stock has slid nearly 20% over the past couple of weeks from its September high. Many investors, who likely believe the early-year rush to AMD may have left it overvalued, are turning to other major semiconductor market players like Nvidia, whose growth has been more modest.
Thanks to its eccentric CEO, Elon Musk, electric carmaker Tesla (TSLA) has seen its stock take a wild ride over the past few weeks. After Musk announced on Twitter that he intended to take the company private for $420/share, the SEC announced it had settled charges with Musk in an agreement where he would step down as chairman of Tesla for at least 3 years but will remain as the company’s CEO. Musk has since continued to spar with the SEC over Twitter.
Tesla stock dipped 13% since last Wednesday and is trading down 2% today. While Musk’s brazen moves may have put the company in regulatory hot water, Macquarie research recently slapped a $430 price target on the stock, citing its likeliness to finally hit production targets, realize profitability, and benefit from clean energy credits. If there’s one thing we can expect out of Tesla, it’s volatility.
Walgreens Boots Alliance (WBA)
The nation’s second largest pharmacy chain reported its Q4 earnings today. Despite trading down 2% today, Walgreens (WBA) stock is up nearly 20% since it last reported earnings. A significant amount of this growth has been attributed to Walgreens’ recent acquisition of Rite-Aid, as it has proven to bolster the chain’s in-store prescription sales, which comprise a hefty portion of overall sales.
While Walgreens has shown strong growth this year, investors that were watching closely for an uptick over last quarter’s declining same-store sales were not relieved. Brick and mortar pharmacy chains like Walgreens have faced difficulty maintaining strong sales in the face of e-commerce giants like Amazon, which an increasing amount of people turn to for household and holiday items.