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Tesla (
NASDAQ:TSLA
) and Nike (
NYSE:NKE
) are among the most discussed stocks on the social media platform Reddit. While these stocks have significantly gained attention and are buzzing on Reddit, Wall Street analysts are cautiously optimistic about NKE and TSLA.
Keeping this backdrop in mind, let’s delve into these trending Reddit stocks.
What Are Analysts Saying About Tesla Stock?
EV (Electric Vehicle) giant Tesla has gained significantly on a year-to-date basis as it
continues to sell more vehicles than the combined sales of competing automakers in the EV sector. Further, its focus on ramping up production, new model launches, and reducing costs bode well for growth. Additionally, the company’s Full Self-Driving (FSD) tech and extensive network of superchargers provide significant growth opportunities in the long term.
However, near-term pressure on margins keeps analysts cautiously optimistic about Tesla stock. The company is lowering its average selling prices to drive volumes and maintain its leadership in the EV sector, which is taking a toll on its profitability.
Given the short-term margin headwinds, Tesla stock has received 12 Buy, 12 Hold, and four Sell recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $272.71 implies 10.69% upside potential.
What is the Future Prediction for Nike?
Nike stock has underperformed in the broader markets year-to-date. However, the company delivered better-than-expected Q1 earnings, which boosted its share price after hours.
Goldman Sachs analyst Kate McShane reiterated a Buy rating on Nike stock following its Q1 earnings on September 28. The analyst remains upbeat about the company’s robust innovation pipeline. While McShane is bullish about Nike stock, tough year-over-year comparisons, macro uncertainty, especially in China, and increased competition are behind Wall Street analysts’ cautiously optimistic consensus outlook.
Nike stock has received 18 Buy, seven Hold, and two Sell recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $122.30 implies 36.45% upside potential from current levels.
Bottom Line
Tesla and Nike stocks are trending on Reddit and have good long-term growth prospects. However, near-term headwinds are keeping analysts cautiously optimistic about these stocks. Nonetheless, with its higher upside potential (based on analysts’ price targets), Nike's stock looks more compelling than Tesla's in the short term.
Disclosure
Tesla stock (Nasdaq:TSLA) has lost about 9% over the past five days, trading at about $244 per share. While the broader markets have been weak with the S&P 500 declining by about 4% over the same period, there have been a couple of other factors impacting Tesla stock. T
Fintel reports that on September 28, 2023, Morgan Stanley reiterated coverage of Tesla (NASDAQ:TSLA) with a Overweight recommendation. Analyst Price Forecast Suggests 1.71% Upside
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Nio has held exploratory talks with Mercedes-Benz for a tie-up that would see the German automaker invest in the Chinese electric vehicle startup in exchange for technology, two people with direct knowledge of the matter said.