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Investing.com stocks of the week

Published 10/25/2024, 01:39 PM
Updated 10/26/2024, 06:00 AM
© Reuters
MCD
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TSLA
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Investing.com -- This week saw significant developments across the market, with Tesla (NASDAQ:TSLA) reporting stellar earnings, McDonald’s (NYSE:MCD) grappling with an E. coli outbreak, and Trump Media & Technology Group (DJT) riding a political wave amid rising odds of Donald Trump winning the 2024 election:

Tesla 

Tesla shares surged 21% following the release of its Q3 earnings, which outperformed expectations, with analysts citing its jump in margins and 2025 outlook. 

Tesla reported Q3 EPS of $0.72, $0.12 better than the analyst estimate of $0.60, while revenue for the quarter came in at $25.18 billion, below the consensus estimate of $25.4 billion. 

Following the report, analysts at Deutsche Bank said, “Tesla delivered impressive Q3 margin in both Auto (boosted by FSD) and Energy (highest on record).”

“Looking at 2025, management provided an initial outlook calling for 20-30% volume growth YoY, materially above our/consensus expectations,” they added. “Tesla is well positioned as a technology platform to leverage end-to-end AI into a leading position in autonomous driving and humanoid robotics.”

A 3% gain on Friday (at the time of writing) has pushed Tesla stock well above the $268 per share mark.

McDonald’s 

While it was a positive week for Tesla, McDonald’s has had a tough one, with the stock declining significantly following news of an E. coli outbreak linked to its Quarter Pounder hamburgers spread. 

The stock dropped more than 5% on Wednesday following the news. On Friday, it is down a further 2.4% after the Centers for Disease Control and Prevention (CDC) confirmed 26 new cases, taking the total to 75 across 13 states. One death has been reported.

“The true number of sick people is likely much higher than the number reported,” said the CDC. “This is because many people recover without medical care and are not tested for E. coli.”

The CDC said McDonald’s stopped using fresh slivered onions and quarter pound beef patties in several states while an investigation is ongoing to identify the ingredient causing illness.

As investigators work to determine the source of contamination, investor concerns have resulted in a significant slide in MCD stock.

Trump Media & Technology Group (DJT)

Trump Media & Technology Group shares have rallied almost 32% in the past week as the odds of Donald Trump winning the 2024 presidential election rise. 

Political momentum around Trump has fueled speculation about the company’s future, given its close association with the former president. 

Numerous investors view the stock as a demonstration of confidence in Trump and the brand. The company recently announced it has launched a streaming service.

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