3 Stocks to Watch on Tuesday: Nokia Oyj (ADR) (NOK), Momo Inc (ADR) (MOMO) and Tesla Inc (TSLA)

The stock market continued to melt higher on Monday, with the Dow Jones Industrial Average putting together a three-day gains streak for the first time since February. And despite a major attack on Britain last night that saw a suicide bomber kill 22 and injure about 100 people, the markets appear to be on stable ground and headed to additional marginal gains Tuesday morning.

3 Stocks to Watch on Tuesday: Nokia Oyj (ADR) (NOK), Momo Inc (ADR) (MOMO) and Tesla Inc (TSLA)As we head into the trading day, Nokia Oyj (ADR) (NYSE:NOK) is standing out thanks to a landmark deal. Meanwhile, momentum stock Momo Inc (ADR) (NASDAQ:MOMO) is keeping up its red-hot move, and Tesla Inc (NASDAQ:TSLA) CEO Elon Musk just gave the world a frank appraisal of his smarts.

Here’s what you should know heading into Tuesday:

Nokia Oyj (ADR) (NOK)

NOK shares are up solidly this morning on news that it’s turning a competitive frown upside down.

Nokia has agreed to shake hands and play ball with longtime sparring partner Apple Inc. (NASDAQ:AAPL) in settling what SiliconRepublic calls the “mother of all patent disputes.”

The pair traded blows numerous times in 2009 and 2010, suing, countersuing and filing ITC complains against one another over dozens of patents in just about a year’s time. A settlement in 2011, in which Apple made a one-time payout to Nokia, as well as continuing royalties, finally put an end to those barbs.

That is until December 2016, when Nokia sued Apple over the alleged violation of 32 patents, making filings in several countries — merely the latest in what had been an extremely contentious relationship dating back to 2009, when Nokia sued Apple over 10 patents. AAPL responded by filing an antitrust lawsuit against two “patent assertion entities” the company believed was working with Nokia to “extort” the iPhone maker.

Now, however, Apple has agreed to a multiyear royalties agreement that will include an upfront cash payment to be recognized in Q2 2017, and sweetened the deal further by signing several business agreements. Apple will once again sell connected health devices from Nokia, as well as potentially team up on “digital health initiatives” in the future.

NOK shares are climbing nearly 6% on Tuesday morning in response, sending shares to their highest point since early 2016.

Momo Inc (ADR) (MOMO)

MOMO’s red-hot run will continue this morning after the Chinese video streaming services operator reported a huge surge in first-quarter earnings.

Momo reported a 630% jump in Q1 earnings to 44 cents per share, far better than Wall Street’s estimates of 32 cents. Meanwhile, revenues rocketed 421% higher to $265.2 million, again easily besting the consensus view of $242.8 million. That was helped by live video service revenues — which represent 80% of total revenue — growing 9.1% sequentially to $212.6 million.

Better still, monthly active user growth soared by 18% year-over-year (12.9 million additional MAUs) to reach 85.2 million. Paying users jumped 17% to 4.1 million, which still puts the company behind China’s top video streaming provider YY Inc (ADR) (NASDAQ:YY).

Second-quarter forecasts of $283 million to $288 million also was higher than Wall Street’s view of $272 million.

MOMO stock has run an incredible 475% since bottoming out in February 2016. That includes a 133% jump so far in 2017 that will be extended with shares’ 4% post-earning pop this morning.

Tesla Inc (TSLA)

Tesla CEO Elon Musk answered questions on Twitter about the timing of an all-wheel drive Model 3 yesterday, and in so doing, gave the investing world a sniff of self-loathing.

In response to @sethjacob14’s query, “Any idea of when we will start seeing the rollout of AWS Model 3’s?” Musk responsed, “Early next year. To start with, we’re making the simplest Model 3 first, like we did with S. Didn’t do it with X, because I was an idiot.”

While many likely disagree with Musk’s assessment, it’s not surprising that Elon’s recollection of the X is colored with a bit of angst. The Model X didn’t churn out nearly the accolades of the Model S, with Consumer Reports putting it in their top 10 least reliable cars in late 2016 — a move that knocked down a Tesla brand that was once buoyed by Model S rankings that literally broke CR’s ratings system.

Tesla is expected to start delivering the Model 3 beginning on July 1.

TSLA shares are trading flat this morning despite Musk’s cheeky admission.

As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2017/05/3-stocks-to-watch-on-tuesday-nokia-oyj-adr-nok-momo-inc-adr-momo-and-tesla-inc-tsla/.

©2022 InvestorPlace Media, LLC