Buzz Stocks: Twitter Inc, Tesla Motors Inc, and Allergan plc

Today's stocks to watch in the news include Twitter Inc (TWTR), Tesla Motors Inc (TSLA), and Allergan plc Ordinary Shares (AGN)

by Karee Venema

Published on Apr 5, 2016 at 9:42 AM
Updated on Apr 5, 2016 at 9:44 AM

Stocks are lower at the open, as crude futures crumble. Meanwhile, among specific stocks to watch in the news are social media firm Twitter Inc (NYSE:TWTR), electric car company Tesla Motors Inc (NASDAQ:TSLA), and drugmaker Allergan plc Ordinary Shares (NYSE:AGN).

  • After breaking out yesterday amid rumors of a possible high-profile partnership, shares of TWTR are up 3.4% at $17.67. Boosting the stock is buzz that Twitter Inc has won the rights to stream the NFL's Thursday night games, reportedly outbidding such heavyweights as Amazon.com, Inc. (NASDAQ:AMZN) and Yahoo! Inc. (NASDAQ:YHOO). Longer term, TWTR has struggled, shedding roughly two-thirds of its value year-over-year. Analysts remain relatively split, however, with 12 maintaining a "buy" or better rating on TWTR, and 15 deeming the stock a "hold" or worse.

  • TSLA has been on a wild ride in recent weeks, as optimism over the company's new Model 3 helped lift the stock nearly 13% from its most recent low of $215, tagged on March 24. The stock is down 2.1% to $241.83 this morning, after Tesla Motors Inc explained that "severe shortages" of Model X parts were to blame for a first-quarter delivery miss. Today's price move could come as a welcome respite for short sellers, considering more than 31% of TSLA's float is sold short. It would take nearly seven sessions to cover these bearish bets, at the stock's average daily pace of trading.

  • The shares of AGN dropped 14.9% dropped out of the gate to $236.29 -- and touched a new annual-low of $226.62 -- following a potential regulatory hurdle to the company's proposed merger with Pfizer Inc. (NYSE:PFE). Specifically, the U.S. Treasury Department on Monday said it plans to implement measures to stop corporate tax inversions, including putting limits on foreign firms buying domestic assets. Year-to-date, Allergan plc Ordinary Shares have given back 24%, and options traders have shown a preference for long puts over calls in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for instance, 1.17 puts have been bought to open for each call in the past 20 sessions.
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