Watch Amazon, Tesla, Ford and more

Posted on July 3, 2024 by darion

Baystreet.ca – Watch Amazon, Tesla, Ford and More<br />

Amazon (AMZN) hit the $2 trillion market cap milestone after media reported it might open its stores to Chinese companies. The rumors sent Chinese e-commerce companies into a tailspin. Amazon’s re-entry would hurt PDD (PDD), Alibaba (BABA) and JD.com (JD) the most.

Amazon has a number of ways to increase its profit margin. It can raise Amazon Prime subscription fees. It can also adjust shipping and handling rates based on consumer demand on its e-commerce site.

In the electric vehicle sector, Tesla (TSLA) continued its rally after Volkswagon (VWAGY) and Rivian (RIVN) announced a $5 billion joint venture. The market’s optimism about Tesla suggests investors are skeptical that its competitors can mount a serious challenge. Both General Motors (GM) and Ford Motor (F) have pulled back on their ambitious EV targets.

General Motors is a better car company compared to Ford. The former is forecasting production of 200,000 to 250,000 electric vehicles this year, down from 300,000 in its previous forecast. GM is instead using the cash to reward investors. It is buying back $10 billion in stock. It also raised its dividend 33% to $0.12 per share.

Ford stock is stuck in a trading range around $12.50. Investors are piling into the stock, citing valuations. But the company has no growth. As a result, any economic slowdown would hurt Ford more than GM.