Tesla Stock Downgraded; Robinhood & AppLovin Miss S&P 500 Index Inclusion

Tesla Stock Under Pressure

• 📉 Tesla (TSLA) is facing downward pressure, with Baird downgrading the stock to neutral from outperform.
• 💡 Baird cited a fundamentally poor quarter and optimistic comments from Musk regarding the robotaxi ramp-up rate as reasons for the downgrade.
• ⚠️ Uncertainty is also attributed to Musk's ties with President Trump, with a price target implying only an 8% increase from the last close.
• 📌 Argus Research also cut Tesla's rating to hold from buy, indicating multiple analyst downgrades.

Drone Stocks Soar on Executive Orders

• 🚀 Drone stocks are experiencing a significant morning rally following executive orders signed by President Trump.
• 🎯 Companies like Joby Aviation (JOBY), Archer Aviation (ARCV), and Vertical Aerospace (EVTL) saw substantial gains.
• 🛠️ The executive orders aim to bolster US drone capabilities, strengthen counter-drone tools, and reduce reliance on foreign manufacturers like China.
• 🌍 This initiative is particularly relevant ahead of major events like the 2026 FIFA World Cup and 2028 Summer Olympics.

Robinhood & AppLovin Miss Index Inclusion

• 💥 Robinhood (HOOD) and AppLovin (APP) shares are falling after failing to be added to the S&P 500 or S&P 1500 indexes during the quarterly rebalancing.
• 📈 Both stocks had risen in anticipation of index inclusion, with Robinhood gaining about 13% the previous week based on speculation from analysts at Bank of America and Barclays.
• 📉 Robinhood is down over 5% and AppLovin is down 4.8% following the disappointing news.