Latest news with #VandaResearch
Yahoo
7 hours ago
- Automotive
- Yahoo
Retail Investors Pile Into Tesla (TSLA) After 14% Plunge on Trump-Musk Rift
Retail traders aggressively bought Tesla (TSLA, Financials) shares Thursday after the stock plunged 14.3%its 11th worst day since going publicamid a very public feud between CEO Elon Musk and U.S. President Donald Trump. The stock rebounded 5.6% Friday to around $299.14. Vanda Research data showed self-directed investors net purchased $201.3 million of Tesla shares after trading $2.6 billion in volume, making it the second-most bought stock by that group. Traders also poured $41.5 million into the Direxion Daily 2x Bull ETF, a leveraged fund that tracks Tesla. Despite the sharp selloff, the options market showed little panic. Tesla's 30-day implied volatility rose to 77, up from earlier levels but well below the 106.1 peak in April. Chris Murphy of Susquehanna said some traders capitalized on the volatility by selling puts, a sign of confidence that the slide might stabilize. Buy the dip is the overwhelming sentiment, said Marco Iachini of Vanda, citing social media scans on Reddit and X, where Tesla remains a retail investor favorite. Tesla shares had surged 90% following Trump's election win in November, but are now down about 37% from their Dec. 17 peak. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Automotive
- Reuters
Retail traders scooped up Tesla as Trump-Musk spat hit stock
NEW YORK, June 6 (Reuters) - Retail investors seem to have spotted an opportunity in the sudden feud between U.S. President Donald Trump and his former ally, Tesla (TSLA.O), opens new tab CEO Elon Musk, scooping up shares of the electric car maker as they tumbled on the acrimonious standoff. Trump on Thursday threatened to cut off government contracts with Musk's companies, as the once-close ties between the world's richest and most powerful man unraveled publicly on their rival social media platforms in a feud over the president's sweeping tax-cut bill. Tesla's stock plunged 14.3% on Thursday, the 11th worst daily drop since the company went public in June 2010. As retail traders hunted for bargains, the stock rose 5.6% to $299 at mid-afternoon on Friday, though it was unclear how much of a role they played in the rally. Self-directed individual investors scooped up a net $201.3 million of Tesla stock on Thursday after buying and selling $2.6 billion, Vanda Research estimated, making Tesla the day's second most-actively purchased stock by such investors. "Tesla has been a favorite holding for this group for a while, so when they see a drop of 14% or more, they jump in and buy," said Marco Iachini, senior vice president of research at Vanda, noting retail investors' renewed appetite for risk-taking. Such investors also poured money into leveraged exchange-traded funds that offer a chance to place a bullish bet on Tesla shares for amplified returns. The Direxion Daily 2x Bull ETF (TSLL.O), opens new tab drew $41.5 million of net buying on Thursday, according to Vanda data. The options market, where Tesla is a favorite with retail traders, showed few signs of panic. "We're not seeing a huge move in volatility," Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, said of Thursday's trading, adding that some traders were taking advantage of the increased volatility to sell put options. Selling puts, which give the buyer the right to sell the underlying shares by a certain time at a set price, signals expectations for the stock price to slow or halt its slide. Tesla's 30-day implied volatility - an options-based measure of how much traders expect the stock to swing in the near term - rose to a six-week high of 77 on Thursday, well below the 106.1 touched in early April during a market-wide selloff, Trade Alert data showed. With Tesla shares up 5% at $299.14 on Friday morning, the implied volatility measure sank further to 68. "I don't think we're at the real warning sign levels at the moment," Interactive Brokers chief strategist Steve Sosnick, said. Iachini said he used models to scan comments about Tesla on social media sites like Reddit and X during Thursday's selloff, and found that users of the sites, which are popular with self-directed investors, overwhelmingly remain bullish on Tesla. "Buy the dip is the overwhelming sentiment," he said. Tesla shares, which surged as much as 90% in the six weeks following Trump's November 5 election, have slipped about 37% since they peaked on December 17.
Yahoo
07-05-2025
- Business
- Yahoo
Palantir stock: Institutional vs. retail trading trends
00:00 Jared Palantir is having its worst day in exactly one year. And the reason is just the same as it was 12 months ago. A big disappointment on some key earnings metrics. So, let's dive in and see how retail traders have been trading this stock over that time period. I'm Jared Blickre, host of Stocks in Translation. First off, this is a year-long chart. In white, we have the price performance of Palantir stock that I'm tracing along right now. And in the green, we have a line from Vanda Research. This tracks retail participation and retail buying. It is a 10-day moving average offset buying. And you can see there's kind of a cyclicality to it. And a lot of times when price goes up, you'll also see this retail buying move up. And that means that retail traders are supporting the price movements. But it's not always the case. Sometimes it's institutions that are supporting it. So, this is a six-month chart, and we're using a five-day moving average, so it's a little bit more volatile. And here we have in white, still, this is Palantir, and there's that same bull pattern that I was just highlighting. And in green, we have that five-day moving average of the flows. Now, what's interesting, and a representative from Vanda Research pointed this out to me, just take this price example, we had a little bit of a dip in price, then a recovery, and at the time, this was a recovery to brand new highs, and we didn't really see retail join the party until it broke to new highs. And actually, before that, they were selling. So, it was institutions that were supporting the price, and then retail was chasing the move. And that's kind of important. Sometimes people say retail is always chasing, but I found that's not always the case. So, I want to dig a little bit deeper into the price action over the last three days, because as I said, we had a huge dip in Palantir, about 10% drop. This chart goes three days back, and I have Palantir here in white again. Here's that drop, and we can see that today, there was a little bit of a recovery. Now, I have both large player and small player effective volume. Now, these are different measurements that what we were tracking with Vanda just a minute ago. This happens to be the discovery of Pascal Willemain, and he has something called effective volume. And he breaks down the price action into small player and large player. So, the small player is a retail player. And what I want to show you here is in green, the institutions were selling, they were selling that dip in the morning, and retail was buying, and then retail sold. So, retail's kind of driving the trade up and then down, maybe day trading. Meanwhile, institutions, once we had that second dip into the morning, or once we got to that high, rather, they have been supporting price since. So, it looks like the large players, the institutions, have stepped in a bit. So, Palantir is one of those retail darlings, and we've seen a lot of retail excitement over it in fits and starts. It's a day trading favorite. And sometimes retail, sometimes retail traders are the impetus for the moves that we see in the stock, and sometimes it's the institutions. Today, I think it's kind of a mix of both.
CNBC
06-05-2025
- Business
- CNBC
Small investors rushed into Berkshire shares during dip even after their hero Buffett sets exit
Warren Buffett and Greg Abel walkthrough the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025. Retail investors poured more than $24 million into Berkshire Hathaway 's Class B stock on Monday, proving it's not just a Warren Buffett cult stock and providing a vote of confidence in incoming CEO Greg Abel. Everyday traders sent about $24.4 million on balance into Berkshire's B stock during the session, marking the stock's highest sum of net inflows since 2016, according to Vanda Research. The shares declined more than 5% on Monday for their third worst session in the last half-decade, as Buffett shocked the investing world on Saturday with his announcement that he intends to leave the chief executive role at year-end, and Abel set to take the reins. Buffett's initial announcement came as tens of thousands of shareholders flocked to Omaha for the yearly gathering, which has become a tradition over Buffett's six decades helming the sprawling conglomerate. Shareholders idolize the "Oracle of Omaha," with meeting attendees sporting apparel featuring his likeness and waiting in long lines to purchase a plush toy of him. "I think the time has arrived where Greg should become the chief executive officer of the company at year end," Buffett said near the end of Saturday's question-and-answer event with shareholders. Buffett is seen as one of the most successful advocates of investing — specifically through a disciplined and value-focused lens — to everyday people. Monday's inflows may surprise some market observers, as conventional wisdom would suggest mom-and-pop traders would be uneasy with the longtime company leader stepping away. Yet Monday's net inflows were more than three times to size of what was seen the previous Friday, underscoring the surge of interest in the stock following the news. It was also the fourth-largest one-day net haul for the stock going back to when Vanda began collecting data in 2014. Date Net flows (in U.S. dollars) 6/24/2016 41543725 8/24/2015 26606101 12/9/2014 25732006 5/5/2025 24356196 1/4/2016 22001366 Now, investors are wondering what's next for Berkshire under Abel, who hasn't shown an ability to pick stocks exceptionally well, the trait that made Buffett a rock star to the regular Joe investor. But they may be appeased by Buffett's comment that he plans to "hang around" and after the board voted to keep him on as chairman. Buffett, who is Berkshire's largest investor with more than $160 billion worth of stock, also said he wouldn't sell a single share of the company he built from a failing textile company into a $1.2 trillion titan. He showered Abel with praise during the meeting, which may have helped ease jitters among attendees about the path forward. Warren Buffett does a walkthrough of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025. "The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg's management than mine," the 94-year-old said. Buffett's future has loomed particularly large over shareholders since the passing of longtime friend and business partner Charlie Munger in 2023. He announced in a shareholder letter released in February that he began walking with a cane and that it "won't be long" before Abel would take over writing the annual memo. Despite Monday's downturn, shares are still up more than 13% in 2025. The S&P 500 , which Berkshire has run circles around over the last 60 years under Buffett, has fallen more than 4% this year. Stock chart icon Berkshire Hathaway, Class B shares Retail investors, who helped bid the stock up to a record the Friday before the meeting, may also be banking on Berkshire being a safe haven if tough economic times are ahead. Berkshire has more than $330 billion in cash on hand, enough to buy all but 23 members of the S&P 500 outright. And perhaps the little guy is betting Buffett, who in the past has done his biggest buying when others are the most fearful, has one last bargain deal in him before he hangs it up.
Yahoo
05-05-2025
- Business
- Yahoo
Palantir (PLTR) Traders Brace for 12% Post-Earnings Swing
Palantir Technologies (PLTR, Financials) will report quarterly results after the market closes Monday, and traders are bracing for a major move. Options pricing implies a swing of more than 12%, which could push the stock to a new all-time high near $139or knock it back to $108. Palantir has become a standout in 2025, rising more than 60% year to date, even as the S&P 500 has slipped more than 3%. That momentum builds on its 340% surge in 2024, making it the index's best performer last year as well. Much of that strength comes from surging demand for artificial intelligence tools and a flood of government contracts. More than 40% of Palantir's fourth-quarter revenue came from U.S. federal agencies. While cost-cutting under President Trump and Elon Musk raises some uncertainty, Palantir's focus on defense and immigration tech puts it in step with the administration's priorities. The company has a pattern of delivering upside surprises. It rallied more than 20% after each of its last two earnings releases, citing strong adoption of its AI platform and revenue growth above 30%. Still, Wall Street isn't sold. Only one analyst currently rates the stock a buy, citing valuation concerns after its meteoric run. But Palantir's retail following remains loyal. According to Vanda Research, it's the third most popular stock among individual investors, trailing only Nvidia (NVDA, Financials) and Tesla (TSLA, Financials). Investors will be watching closely to see if the earnings match the hypeand whether the rally has room to continue. Explore valuation details. See insider activity. This article first appeared on GuruFocus. Sign in to access your portfolio
