Hot or Not, Stock Market Edition: 02/07/2025

What’s popping and what’s flopping in the market today?

• HOT: Walmart (NYSE: WMT) is rewarded for its plans to refocus and relocate. Uber (NYSE: UBER) had its best quarter ever, but the stock dropped — is it a buy the dip opportunity?
• NOT: Tesla’s (NASDAQ: TSLA) EV sales are declining in Europe. AMD (NASDAQ: AMD) falls on weak guidance. 

🔥 HOT: Uber (NYSE: UBER) shares lost 7.6% on Wednesday despite an impressive earnings report. The fourth quarter of 2024 was the company’s best quarter ever, with 20% year-over-year revenue growth and an 18% increase in bookings. So what’s going on? Unfortunately, Uber expects between $42.0 and $43.5 billion in bookings for the first quarter, which is slightly under the $43.5 billion analysts expected. Uber’s financials are still strong, and the company still leads the space, so we give it a B Zen Rating and a Buy recommendation. Its current value represents a solid entry point, and despite its choppy trading, there’s plenty of potential upside.

🥶 NOT: Shares of AMD (NASDAQ: AMD) fell by 6.3% on Wednesday after the company issued relatively weak guidance for 2025 during its fourth-quarter earnings call. AMD’s EPS and revenue slightly exceeded expectations, but its data center growth projections were enough to compel some investors to reduce their positions. AMD has lagged behind Nvidia in data center growth and adoption, mostly due to Nvidia’s proprietary CUDA software, which AMD still has no viable answer for. Still, AMD stands to grow along with the rest of AI-related stocks, and the company expects to see double-digit sales growth this year. We give AMD a C Zen Rating and a Hold recommendation for now.

🔥 HOT: Walmart (NYSE: WMT) shares gained 1.7% on Wednesday after the company confirmed its intentions to refocus its business and move its corporate employees out of its Charlotte location to either its new headquarters in Bentonville, Arkansas or its Sunnyvale, California location. WMT has had a strong start to the year and has already gained 13.9% YTD. The stock is also up 80.8% year-over-year, which easily earns it a B Zen Rating and a Buy recommendation.

🥶 NOT: Sales of Tesla’s (NASDAQ: TSLA) electric vehicles are declining across Europe, with a 60% drop in new-vehicle registrations in Germany in January and a similar 63% drop in France. The market is growing uneasy about declining sales, and shares of Tesla fell by 3.6% on Wednesday. The rally TSLA was on following the U.S. election seems to be over, and the EV maker’s stock has fallen by 22.6% since its high point on December 18th. We tentatively give TSLA C Zen Rating. Keep watching until things settle down surrounding Elon Musk’s newfound role in the U.S. Government.

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