Today we are watching…
1. Northrop Grumman (#nthrop)
Most US stocks are in the wars right now, but this arms manufacturer is in its element. Since ordering a drone attack on Iran’s top military general on Friday, President Trump has deployed three thousand extra foot soldiers to the region in war prep. Grumman, an eight-time Collier Trophy-winning firm, is gunning to be their kit sponsor! The company would benefit from increased military spending if war broke out, supplying the war effort with aircraft, drones, satellites, autocannons, and much, much more. Along with shares in other aerospace and defense companies like Raytheon and Lockheed Martin, investors snapped up Grumman as its future prospects took shape on Friday. However, many also ducked the potential opportunity, not at peace profiting from a war cycle.
2. Tesla (#tesla)
If you want to stay in Elon’s good books, don’t short Tesla’s stock. Fed up with bearish Wall Street analysts waging bets against his electric car start-up, Elon Musk threatened to take Tesla private in 2018. His “funding secured” tweet rattled markets and landed him in hot water with the Securities and Exchange Commission. However, sentiment didn’t swing. A year later, then, Musk set a further precedent by tweeting renowned investing critic David Einhorn a pair of short shorts! 26% of shares in Tesla are still being sold short today, but according to financial analytics firms, those bets have racked up losses of over $8 billion since May, all thanks to Tesla’s stock market outperformance. Elon’s laughing now, but will he get the last laugh?