Big Stocks 2017
With 2016 now firmly in the rearview mirror, 2017 promises to be an exciting year for investors. Between a new administration taking power in the White House in January with a proven track record of being able to sway the market with nothing but a tweet, some major technologies pegged for release this year, and huge expectations for huge companies, “Stocks 2017” is shaping up to be anything but a dull year.
Having said that, here are three shares you should keep an eye on and the impact events that could shake up stocks in 2017.
Tesla Model 3
Tesla Motors Inc (NASDAQ:TSLA) had a pretty down 2016, dropping about 11%, mainly as the result of a huge crash in February precipitated by, among other things, cheap gas and doubts for the immediate future returns of a company bent on lofty and long-term goals. (Source: “Tesla’s worst trading day since 2014,” CNN Money, February 8, 2016.)
The stock rallied from its low of $143.00 per share in early 2016 to finish at $213.00 by year’s end.
But Tesla stock is about to face what could be either its biggest triumph or deepest failure since the company’s inception. The “Tesla Model 3” is slated for release later in 2017, and is meant to be priced at an affordable $35,000 with tax incentives. Basically, it would be the everyman’s Tesla. If the auto company was able to release the car on time and hit the production estimates, Tesla stock could skyrocket.
On the other hand, Tesla does not exactly have a shining track record when it comes to making its shipping numbers, as evidenced by last year’s failure to hit the 80,000 to 90,000 units shipped. And there’s definitely doubt that not only will Tesla fail to meet the shipping quotas, but that the car won’t be able to maintain such a low selling price. (Source: “Tesla Keeps Missing Forecasts: What This Means For Model 3,” Forbes, January 4, 2017.)
Combine all this with a congress and incoming president that aren’t exactly huge proponents of green technology, and you have what may be an uphill battle.
On the other hand, Tesla stock got a boost with the first batteries being produced at their much spoken about “Gigafactory,” a giant compound in the Nevada desert that Elon Musk and company hope will make missed shipping estimates a thing of the past.
All in all, there’s a lot to look out for in Tesla stock this year, making it one of the most interesting shares to watch in “Stocks 2017.” The Model 3’s fate, however, will more than likely be the defining moment of Tesla stock this year.
The Future of Chips
If there was one industry that saw huge gains in 2016, it was the chip makers. Both Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) saw huge gains in 2016, with AMD stock up 313% and NVDA stock up 253%. Both companies were the beneficiaries of some big advancements in the machine-learning and AI fields, and their chips are looking to be crucial to the development in these burning hot sectors.
The real question for AMD stock and NVDA stock is whether these two companies can in fact capitalize on the market and parlay their fantastic growth from 2016 into further gains in 2017.
A huge breakthrough in machine learning could be the type of trigger event that would send these stocks soaring. On the other hand, new competitors or companies eschewing AMD and NVIDIA for in-house development of chips could quickly curb their massive gains.
The potential for huge growth makes NVDA stock and AMD stock well worth watching in stocks 2017 to see if they’ll explode—or implode.
Stocks 2017: An Overview
While these three tickers are bound for an exciting year, the tech industry as a whole is sure to be in store for what will be a wild year on the markets. Who will rise and who will fall is unknown; the only certainty is that stocks 2017 won’t be boring.