Stocks enter another meaty week of the second-quarter earnings season, with Wall Street trying to recover after a two-day swoon to end last week. While Asia marked a quiet beginning to the trading week, oil prices are injecting a bit of excitement, reaching $50/barrel for a brief period.
As we enter the fresh week, Tesla Inc (NASDAQ:TSLA) continues to wrap itself in a warm blanket of spotlight as its Model 3s finally began delivery. Meanwhile, GoPro Inc (NASDAQ:GPRO) is enjoying optimism on the analyst front, while Sony Corp (ADR) (NYSE:SNE) faces a cinematic smackdown.
Here’s what you should know heading into Monday’s trade:
Tesla Inc (TSLA)
Early Tesla Model 3 reviews are in, and so far, it looks like the electric car is built to please.
Touted as an affordable hybrid from Elon Musk and co., the $35,000 “mass-market” Model 3 was shared with 30 journalists ahead of its release. So far, the Model 3 has gotten nothing but praise.
Motor Trend noted that the vehicle has great acceleration and steering, and the interior is especially nice as it is spacious and comfortable. His review ends with a pivot — from his original thought that the Chevrolet Bolt EV is “where the second era of the car commences” to determining that “with the Tesla Model 3’s performance, slinky style, fascinating creativity, and, critically, its Supercharger safety net, I think this is truly where it begins.”
From Business Insider: “The midnight silver Model 3 I took for a spin had aerodynamic aluminum wheels and looks a lot like a smaller Model S, echoing the bigger sedan’s sloping fastback rear roofline. It’s a sharp car, and unmistakably a Tesla.”
Wired calls it “much more than an electric car” in its review, noting that the Model 3 should work well in an autonomous driving future. The Model 3’s self-driving technology, AutoPilot is semiautonomous for now, but it has great potential.
TSLA shares are up more than 1% this morning, trying to extend a 56%-plus year-to-date gain.
GoPro Inc (GPRO)
GoPro, which reports earnings later this week, is getting a lift thanks to positive commentary from Morgan Stanley.
Morgan Stanley on Monday upgraded GPRO stock from “Underweight” to “Equal Weight,” though it was hardly a bullish call. The analyst firm gave shares a price target of $7.50 — implying roughly 7% downside from Friday’s closing price of $8.10.
Still, Morgan Stanley is optimistic about improvements in the company’s software, and believes that all headwinds are now fully baked into the stock price.
GPRO stock is up about 4% on the news, cutting into a year-to-date loss of about 7%.
Sony Corp (ADR) (SNE)
Sony’s The Emoji Movie was popular among young audiences, but was panned by critics.
The film — based on the emojis that we use to text or communicate via social media — was produced by Sony Pictures Animation. The movie raked in $25.7 million in its opening weekend, in line with expectations.
However, The Emoji Movie could suffer moving forward as many critics had harsh words for the flick, netting it an 8% “Rotten” rating on Rotten Tomatoes.
“At its best, this seems like a second-rate version of Pixar’s Inside Out. At its worst, it’s a cash-grab based on a cynical high-level concept,” says James Berardinelli from ReelViews.
Time Out‘s Tomris Laffly condemned the moral core of the film, saying parents should “disregard that PG rating and keep your children far away from director Tony Leondis’ vile animated faux-comedy. Beneath its trippy surface lurks an insidious philosophy hazardous to impressionable minds.”
The Emoji Movie netted a few more favorable reviews, such as the one from Kaplan vs. Kaplan‘s David Kaplan: “The Emoji Movie won’t win any prizes for animation, but at least it’s an adventurous idea that will appeal to a variety of people.”
Sony’s Pictures Division suffered a $719 million loss last quarter and is desperately looking for some sort of turnaround. Not that investors would notice — SNE shares are up 46% year-to-date.
