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Buzz Stocks: Twitter Inc, Tesla Motors Inc, and NXP Semiconductors NV

Today's stocks to watch in the news include Twitter Inc (NYSE:TWTR), Tesla Motors Inc (NASDAQ:TSLA), and NXP Semiconductors NV (NASDAQ:NXPI)

Oct 27, 2016 at 9:54 AM
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U.S. stocks are higher as traders digest some unexpected earnings wins, and look ahead to a big day of earnings to come. Among equities in focus today are social media concern Twitter Inc (NYSE:TWTR), electric auto maker Tesla Motors Inc (NASDAQ:TSLA), and semiconductor stock NXP Semiconductors NV (NASDAQ:NXPI).Here's a quick look at what's driving TWTR, TSLA, and NXPI.

  • A surprise earnings beat is helping TWTR trade higher this morning, with the social media stock currently up 2% at $17.64. In addition to revenue and earnings that came in above analyst expectations, TWTR also announced it would be cutting 9% of its global workforce as a cost-saving measure. Today's boost was a badly needed change of pace for Twitter Inc, the shares of which are down over 42% year-over-year, and have shed nearly 30% since their M&A-inspired peak of $25.25, touched earlier this month. Speaking of M&A, Twitter CEO Jack Dorsey wouldn't comment on the recent speculation, with the latest round of buyout buzz involving Walt Disney Co (NYSE:DIS). Analysts are skeptical of the social media stock, with just four out of 25 offering up "buy" or better endorsements.

  • TSLA is also trading higher on an earnings beat, up 5.2% at $212.67. The electric automobile maker recorded a quarterly profit for the first time in three years, surprising analysts and earnings price-target bumps by RBC and Goldman Sachs, to $220 and $190, respectively. Tesla Motors Inc shares are still down more than 11% since the beginning of 2016, and are struggling to surmount their 200-day moving average, which hasn't been toppled since August. There's likely some TSLA option buyers cheering this unexpected win, with TSLA's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 1.32 sitting just 8 percentage points from an annual peak.
  • NXPI is up 1.8% at $100.44, after news that chipmaker QUALCOMM, Inc. (NASDAQ:QCOM) will be purchasing NXPI for a total of $38 billion. NXPI now sits up over 19% so far this year -- mostly thanks to a massive M&A-inspired bull gap in late September -- and notched an annual high of $107.54 just last week. Recent option buyers are likely cheering this announcement, with NXP Semiconductors NV's (NASDAQ:NXPI) 10-day call/put volume ratio at the ISE/CBOE/PHLX of 4.86 sitting at an annual peak.

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