Home » Facebook’s Big Fall, Plus Is Tesla The Next Apple? – The Week Ahead

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Facebook’s Big Fall, Plus Is Tesla The Next Apple? – The Week Ahead

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Facebook’s Big Fall, Plus Is Tesla The Next Apple? – The Week Ahead

Earnings will start trickling out this week with companies like Goldman Sachs ($GS), IBM ($IBM) and Procter& Gamble ($PG), but the full slate of earnings don’t start until the week of January 22. So we should just see a continuation of this past week. But one will need to pay close attention to Facebook, Tesla, the Biotech’s, Financials, and Micron.

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Facebook

The reaction by the stock market to Facebook’s news on Friday seems somewhat dumb because unless I’m missing something, Facebook said the same in 2016. Look at this post I dug up from June 29, 2016, about building a better news feed and putting friends and family first. So either I’m missing something, or the market is missing something.  Has your Facebook news feed experience been better since 2016? I’d say I use Facebook even less today then I did then. Every other post in my news feed seems like an ad of some kind, and honestly, I find myself using it less and less, along with LinkedIn.  So I think it is smart for Facebook to “make this move,” if anything changes. It could perhaps just be a PR move as well, to get in front of the backlash from all the “fake news” election crap.

Let’s see what happens when Facebook reports results on January 31. I’ll tell you; the stock held support exceptionally well on Friday. I would not be surprised to see the stock back to $188 in a matter of days.

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Tesla and Apple

Electrek is reporting that the Tesla Model 3 is now starting to hit showrooms, and it is drawing large crowds. The article notes a similarity to the crowds Apple would bring on iPhone launch days. If you are a Tesla shareholder, like I am, you could only dream of the Model 3 having half the success of the iPhone.

Again, it goes to my post many months ago, talking and comparing Tesla and the Model 3, to that of Apple and iPhone. The Model 3, brings the Tesla brand to the ordinary person for the most part, and not just the well to do. It introduces a driver to the Tesla ecosystem, with a network of cars communicating with one another, and artificial intelligence gathering real-time driving miles, helping to make autonomous driving safer. It could be similar to the iPhone and iOS ecosystem, where a person stores photos, or music in the iCloud or iTunes, sends iMessages, and Facetime. When someone buys an iPhone they buy an experience; when someone buys a Model 3, it may come to experience as well.

Or will it come down to brand, just like when you go to get a new phone vs. getting the new iPhone. Will you be getting a new car or the new Tesla? Only through history shall we know the success or failure that is Tesla.

Biotech

Things I’m watching for the week of January 22.

I’m waiting for a biotech breakout on the $IBB at $114 and watching the big Biotech’s Celgene, Biogen, Gilead, and Amgen. Gilead ($GILD) has shown signs of life, and if it cracks $81, I think it will end up rising to around $92.

Gilead

Celgene

Celgene could see a breakout as well, should it rise above $109, the next stop is likely around $119.

celg

Financials

The $XLF finished the week right at resistance around $29, a level it hasn’t seen in nearly a decade. A rise above $29 sends it higher on towards $31.

banks
Goldman

With Goldman set to report this week, the stock looks ready to rip higher, after bouncing off support around $250. Additionally, the current setup looks like a bullish pennant formation in the chart as well; another sign shares could be set to rise.

Morgan Stanley

Morgan Stanley looks like it could be about to run higher as well. A rise above $56, sends this stock on its way to about $70.

morgan stanley

Micron

Finally, I’m watching Micron this week. The pattern in the chart makes me feel very uneasy.

micron

It just reminds me too much of the chart below.

Let’s hope I’m wrong.

nasdaq

Sorry, but some things you just never forget!

Good Luck this week.

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Michael Kramer and the Clients of Mott Capital own shares of CELG and TSLA

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Tags: #facebook #tesla #apple #biotech #financials #goldmand #morgan #gilead #celgene