Tesla Rival Stays Hot After Intel Partnership

Nio and Mobileye are developing autonomous cars in China

by Patrick Martin

Published on Nov 5, 2019 at 3:05 PM

The U.S. stock market is roaring higher again today, with the Dow hitting a new all-time high. Among specific stocks making notable moves are electric carmaker Nio Inc (NYSE:NIO), ride sharing concern Uber Technologies Inc (NYSE:UBER), and healthcare stock Myriad Genetics, Inc. (NASDAQ:MYGN). Here's a quick look at what's moving the shares of NIO, UBER, and MYGN.

NIO Rally Rolls On With Mobileye Partnership

Nio stock is up 27.8% at $2.18, at last check, on track for its best day since September 2018. This comes after the Tesla rival inked a partnership with Intel's (INTC) Mobileye to develop autonomous vehicles in China. NIO is cruising toward its fifth straight win, and after a rough October, is eyeing its first close above its 50-day moving average since Sept. 13.

Nio's options pits have come to life today in response. With just about an hour left in trading, 194,000 calls have changed hands -- six times the expected intraday amount, and more than triple the number of puts traded. It appears new positions are being opened at the weekly 11/8 2- and 2.50-strike calls.

UBER at Risk for More Bear Notes

Uber reported third-quarter earnings last night, with profit and revenue both surpassing expectations. However, UBER stock is down 9.7% today to trade at $28.08 -- and earlier hit a record low of $27.98 -- due to lower-than-estimated monthly active users and gross bookings. No fewer than four brokerages have stepped forward with price-target cuts, the lowest coming from Susquehanna, to $31 from $42. UBER is heading toward its fourth straight loss and worst day yet.

The security is certainly at risk for more bearish analyst attention. There are 30 brokerages in coverage of Uber stock, and 23 rate it a "buy" or better, with zero "sells" on the books. Furthermore, the consensus 12-month price target of $45.94 sits up in territory not seen since late July. 

MYGN in Nasdaq Cellar After Earnings

Near the bottom of the Nasdaq today sits Myriad Genetics stock, down 41% to trade at $20.76, and earlier touching a two-year low of $20.10. This comes after the drugmaker's fiscal first-quarter earnings and revenue fell short of estimates. Four brokerages have issued price-target cuts, including J.P. Morgan Securities, to $20 from $27. Jefferies says this latest corporate report adds to the growing list of credibility issues for the company. MYGN has now shed more than half its value since its Aug. 2 annual high of $48.40.

With MYGN on the short-sale restricted list today, the stock's typically quiet options pits have come to life. At last check, over 8,000 options have changed hands -- 26 times the average intraday amount, and volume pacing for the 98th percentile of its annual range. Leading the charge is the May 25 call, where it looks like sell-to-open activity is detected.


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