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Amazon shares hit new high

This week, Amazon reaches a record high, Nike gets a boost from BoA, and Tesla promises to unveil robotaxi designs in August.

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But first, the macro wrap-up:

Despite a rocky week for stocks after US consumer prices came in hotter than expected for a third month straight, the S&P 500 is up 0.4% this week. Consumer prices, inflation and interest rates remain one of the biggest macro movers for the stock market. 

Amazon shares hit record high 📈

New highs: Earlier this week, Amazon stock hit $187 surpassing its record $186 from July 2021, which was fuelled by the pandemic. So, what has Amazon investors excited?

  • Diversification: In short, Amazon is successfully diversifying itself in lucrative industries. As well as having a robust retail business, it has a dominant cloud division, a promising generative AI model, a solid ad business, and its expanding streaming services.

  • Closing in on $2 trill: All this is helping the e-com giant edge closer to a market cap of $2 trillion, which is noteworthy ahead of its Q1 2024 earnings on April 25th –  this will be the key date investors have their eye on.

Nike jumps 3% 👟

A tick from BoA: Nike shares have underperformed in recent years, but the stock got an upgrade on last night, after Bank of America predicts Nike is on its way toward turning things around. What is it BoA thinks can boost the stock?

  • Inflection point: BoA believe Nike is finally at an inflection point (or in other words, the only way is up). Moving from a ‘neutral’ to ‘buy’ rating, and having a new target price of $113.

  • The Olympics: There aren’t many sporting events that amass over 3 billion viewers, but the Olympics is one of them. Nike is targeting a successful Olympic Games, having admitted to culling a number of styles from its catalogue and refocusing on product innovation.

Tesla’s unveiling robotaxi designs 🏎️

A bumpy quarter: Tesla has had a tough start to 2024, with shares tumbling a hefty 30%. But, the stock had a boost after it said it will share robotaxi designs in August this year.

  • Two new models: Tesla’s next two vehicles are expected to be a smaller and cheaper electric car, priced at $25,000 and a new “dedicated robotaxi,” a vehicle designed for autonomous driving without any pedals or steering wheel.

  • A new business model: A robotaxi is important for Tesla’s business model, as it allows it to enter the ride-sharing industry. What’s more, it wouldn’t need to pay staff costs like Uber and Lyft, given no drivers would be needed.

What have we learnt this week? 🤓

  • Amazon’s much more than e-com: The biggest companies make efforts to ensure they’re dominant in as many industries as possible. Amazon is no different. 

  • The Olympics may be a market mover: Any event that has almost half the world’s population watching it presents an opportunity for stocks associated with the event. Savvy investors will keep one eye on companies involved in this year’s Games. 

  • Take Tesla’s plans with a pinch of salt: Elon Musk has a history of over promising so he can raise investor excitement. Robotaxis have been on the company’s agenda since 2016, but the market still awaits designs.

Stock announcements 👀

Here are the key earnings dates to look out for next week:

  • Monday 15th April: Goldman Sachs

  • Tuesday 16th April: Bank of America, Johnson & Johnson, Morgan Stanley

  • Thursday 18th April: Netflix

  • Friday 19th April: American Express

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*Figures and ratings correct as of 12th April 2024.

Past performance does not guarantee future results. Capital at risk when investing. This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.

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James Ashoo

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James has been investing for over five years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

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