Tesla disappoints with the falls of the Nasdaq; Why Zoom continues to climb | Zoom Fintech
The stock market can’t seem to decide which solution to choose, and it makes September a chaotic month for the Nasdaq Composite (NASDAQINDEX: ^ COMP). After posting a big hit on Tuesday, traders were much less confident about the outlook for the benchmark on Wednesday. At around 3:30 p.m. EDT, the Nasdaq was down nearly 3%.
Many traders were hoping that Tesla (NASDAQ: TSLA) might be able to spur another rally within the Nasdaq on Wednesday, with the Battery Day event taking place late Tuesday afternoon. This turned out not to be the case. Nonetheless, Zoom Video Communications (NASDAQ: ZM) managed to maintain its discount level, serving to offset losses from other tech giants.
Tesla’s long-term technique
Tesla shares lost another 10% on Wednesday, particularly due to losses in Tuesday’s session. As CEO Elon Musk recommended, traders weren’t happy with what Tesla revealed on Battery Day.
Provision of images: Getty Photographs.
At first glance, what Tesla is trying to achieve makes perfect sense for the company. Musk is looking to deliver battery manufacturing in-house in order to increase as much as volumes essential to drive prices down. Much of the reason Model 3 electric cars are as expensive as they are is because batteries essential for propulsion are expensive. By being more environmentally friendly with batteries, Tesla hopes to reduce the price of its cars to $ 25,000.
But some had hoped Tesla would have information on the long-awaited Million Mile Battery. It wasn’t, and the much less dramatic incremental progress the automaker made was not enough to justify another larger share price transfer in the eyes of many people.
Few people dispute Tesla’s handling of electric cars, and the company continues to have big problems. But shareholders now have such high expectations that even great news is not always acceptable to drive up the share price.
Meanwhile, shares of Zoom Video Communications climbed 2%. The video-collaboration stock had been much larger earlier today, but the afternoon’s downdraft weighed on its benefits.
Zoom’s action has found itself tied to the changing fortunes of the COVID-19 pandemic. Health workers are increasingly involved because as daylight saving time offers a solution in fall and winter, the northern hemisphere will again experience a higher incidence of the disease.
Already, tens of millions of people use Zoom as an alternative to face-to-face contact, whether or not in the corporate world or in schools, authorities or social teams. Because the pandemic continues, those who have resisted Zoom will likely be more inclined to start using the service. In addition, those who have used free variants of Zoom will consider paid subscriptions, thus increasing their income.
Everyone understands that Zoom’s progress is not sustainable in the long run. However, the more Zoom can sustain the tempo, the more its share price can climb. Ultimately, this can prove to be important not only for Zoom’s run to file height, but also for the welfare of Nasdaq more broadly.