That’s why betting on Apple, Tesla, Zillow and other tech names will pay off in 2021, says this analyst

Markets stop waiting for a stimulus bill that could bring a rally during the holidays and all eyes are on 2021. It’s also a big day for Tesla – the price of its shares at the end of Friday will determine the weighting of its shares when he joins the S&P 500 next week.

As for next year, call of the day from Wedbush analyst Daniel Ives has a whole bunch of predictions involving the biggest names in technology.

“By 2021, there is a clear impetus for space / technology stocks, as a number of transformation trends, such as cybersecurity, cloud, 5G, e-commerce and stand-alone, will be in front of the center of the street,” Ives said. .

On the Tesla TSLA,
+ 5.32%,
Ives believes the flagship carmaker will find continued success with its Giga 3 plant in China, which is set to begin deliveries of the Tesla Model Y next month, reaching its annual delivery target of 250,000 ahead of expectations.

Global demand for electric vehicles is expected to reach “a major turning point”, reaching 6% of total car sales from 3% today, while Ives also expects Baidu BIDU in China,
to enter the market through a partnership or acquisition.

But read this review: Nio, not Tesla, is the best choice of EV shares for 2021

Apple AAPL,
+ 0.70%
will emerge as the “clear winner” in next year’s race to dominate 5G and break the record for annual iPhones sold, Ives said.

Regulatory winds, such as the antitrust suits faced by technology giant Google, owned by Alphabet GOOGL,
and the social networking platform Facebook FB,
could bring fines and pressure from Washington, but there will be no major changes to technology business models or the break-up of companies, according to Wedbush.

Essential reading: Big Tech ignites each other amid antitrust probes and litigation

Regarding cybersecurity, Ives said that the recent Solarwinds SWI,
the software hack will increase long-term expenses and lead to a budget increase of at least 20%. It also expects consolidation in the sector with aggressive purchases from strategic buyers.

Read more: Microsoft was violated in the SolarWinds cyber attack, in what an executive calls “a moment of calculation”

Ives see Microsoft MSFT,
+ 0.06%
Passing before Amazon AMZN,
in the fight against cloud services and Uber UBER,
+ 0.28%
achieving profitability ahead of expectations of a strong rejection in sharing shuttle rides and travel.

In the case of bricks and mortar, Ives estimates that e-commerce will remain above 20% of total retail sales, despite the return of retail after coronavirus. Real estate technology will advance, with Redfin RDFN online markets,
+ 5.02%
and Zillow Z,
+ 2.61%
taking the “material share” of traditional brokerages.


BDSwiss Market Insights

Our chart today, courtesy of Marshall Gittler at BDSwiss, shows how much the US current account deficit has widened and what is expected from today’s report for the third quarter. The FactSet consensus is that the current account deficit will be $ 188.6 billion – an increase of $ 18.1 billion from the $ 170.5 billion deficit in Q2.


YM00 Stock Market Futures,

+ 0.03%

+ 0.06%
are geared slightly down, ready for an easy opening, while the US awaits a stimulus package from Congress. Asian markets declined, while European equities rose SXXP,
as trade talks on Brexit continue to be the focus of attention, with officials on both sides saying the big differences stand in the way of a two-week deal. GBPUSD,
it falls slightly against the dollar, comparing yesterday’s gains to almost two-year highs.


Congress lawmakers are facing a deadline on Friday to pass a package of economic incentives for coronavirus. As discussions continue, they may miss this target, as well as the deadline for a bill to continue funding the government – which would lead to a closure.

A key committee of the Food and Drug Administration voted that the benefits of the COVID-19 Moderna vaccine candidate outweigh the risks. The recommendation paves the way for the full approval of MRNA Biotech Moderna,
+ 5.09%
vaccine by the FDA.

The United States is set to add dozens of Chinese companies, including chip maker SMIC, to a commercial blacklist, according to a Reuters report.

The newest title on CD Projekt CDR,
+ 3.07%
it was expected to be one of the best-selling games of all time. But the initial reviews of “Cyberpunk 2077” on consoles were terrible, and now Sony has taken the game – featuring Tesla CEO Elon Musk and actor Keanu Reeves – out of the PlayStation store. Shares fell by more than 40% from two weeks ago.

Random readings

The newly formed Florida team of dogs sniffing the python found their first snake – a 2.4-meter Burmese python.

A surreal painting worth more than $ 250,000, lost at Dusseldorf airport, was recovered from a nearby recycling bin.

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