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U.S. stock index futures on Tuesday pointed to a slightly lower open, as market participants await an appearance from Federal Reserve chief Jerome Powell at a European Central Bank forum. Here are some stocks to watch on Tuesday:
- Tesla (TSLA) spiked nearly 5% ahead of the opening bell, after the electric vehicle (EV) giant beat expectations on Q2 deliveries. The Elon Musk-led firm said it delivered 443,956 vehicles in the quarter, above the consensus estimate of 439,302. In the lead-up to the Q2 report, analysts had been reeling in estimates on deliveries due to concerns over consumer demand, as well as registration data from Europe and China. Earlier today, major Chinese rival BYD (OTCPK:BYDDF) set a new sales record for its Q2 with 426,039 vehicles, inching ever closer to Tesla (TSLA).
- Class A shares of Rivian Automotive (RIVN) climbed about 2.5% ahead of market open, after the loss-making EV startup said it had delivered 13,790 vehicles in Q2. Furthermore, management reaffirmed the company’s full-year guidance for production of 57K vehicles. Rivian (RIVN) said the delivery results were in-line with its own expectations. Rivian (RIVN) a week ago scored big after announcing a joint venture with Volkswagen (OTCPK:VLKAF). As part of the deal, the German carmaker will make a $5B investment in the EV startup.
- Class A shares of Atlassian (TEAM) added more than 3% in pre-market trading, after Piper Sandler moved to a Overweight rating from Neutral. The brokerage sees the Australian business software firm’s current valuation as an “attractive entry point” to what it views as “one of the most durable companies” in its coverage. “With shares sliding to 8x CY’25E revenue, we think the risk/reward has turned favorable for TEAM … Noting 82% of Data Center seats are enterprise, we think enterprise customers will power the next wave of cloud migrations, lending to better cloud growth dynamics,” Piper Sandler said.
- Class A shares of CrowdStrike (CRWD) shed more than 2% ahead of market open, after Piper Sandler downgraded the cybersecurity company to Neutral from Overweight. “Yes, this is a valuation call,” the brokerage said, adding that CrowdStrike (CRWD) shares had “deservedly risen to the highest revenue multiple of any public software company above $75B in market cap and encroached on our $400 target (which we do not see a near-term catalyst for raising).” Back in late May, Morgan Stanley had said it sees CRWD as the “next $100B cybersecurity company.”
