AppLovin, MicroStrategy, and Aurora Innovation led the charge in a dynamic day of stock market movements. AppLovin shares increased nearly 6% following the mobile advertising company's announcement of adjustments to its buyback program. Meanwhile, MicroStrategy saw a substantial 13% climb. Aurora Innovation also experienced a surge, with shares rising almost 9% after Morgan Stanley initiated coverage on the stock, issuing an overweight rating.
SanDisk, another company under Morgan Stanley's coverage, saw its shares gain 2% as the firm also rated it overweight. Tesla shares jumped nearly 3% following Morgan Stanley's Adam Jonas naming it as a new top pick in U.S. autos. Despite a challenging near-term outlook, Morgan Stanley remains optimistic about Tesla's potential, forecasting a possible 90% rally within the next 12 months. Jonas expects Tesla to rebound roughly 50% in store, adding confidence to investors.
Morgan Stanley's strategic focus extends beyond traditional investments. Their coverage now includes ether and smaller, higher-risk assets like XRP, Solana's SOL token, and Cardano's ADA, alongside bitcoin. This broadening perspective reflects a growing interest in diverse and high-potential assets.
ON Semiconductor recorded a modest gain of about 1%, while Southwest Airlines shares dipped 2%. The decline followed JPMorgan's downgrade of the airline carrier from a neutral to an underweight rating. Jamie Baker of JPMorgan expressed skepticism about Southwest's future, stating:
"Remained convinced that Southwest's best margin and ROIC [return on invested capital] days lie in the past." – Jamie Baker
Mosaic's key fertilizer categories are anticipated to rise in price by 2025, according to JPMorgan. Meanwhile, Chipotle Mexican Grill shares rose 2% after Morgan Stanley upgraded its status to overweight, highlighting the stock as an appealing entry point for investors.
Okta shares also saw a 2% increase ahead of the identity and access management company's fiscal fourth-quarter earnings announcement. Capri Holdings experienced almost an 8% jump following a Bloomberg report suggesting that Prada is nearing an agreement to purchase Versace from Capri for approximately 1.5 billion euros.