The underperformance in Pfizer (PFE) may come to an end. The media reported that Starboard Value took an approximately $1 billion stake in the drug maker.
Pfizer stock may break out above $30 if either Pfizer or Starboard confirms the investment. The firm failed to capitalize on its cash flow windfall from sales of Covid-19 vaccines during the pandemic.
In addition to Pfizer stock, value hunters may consider Bristol Myers (BMY) and Gilead Sciences (GILD).
In the chip sector, Schwab (SCHW) reported that clients traded Intel (INTC), Nvidia (NVDA), Alphabet (GOOG), and Microsoft (MSFT). Among those firms, Intel is the least attractive investment. UBS cut its rating on Mobileye (MBLY), which is majority-owned by Microsoft. UBS is concerned that the China mix, supervision product launch, and technical concerns will hold back Mobileye’s prospects.
In the EV sector, Tesla (TSLA) lost 3.7% on Monday to close at $240.83. Markets spread a rumor Berkshire Hathaway’s (BRK-B) Geico would withdraw coverage of Tesla Cybertruck. Unfortunately for bears, Geico’s Corporate Communications said that the insurance firm has coverage available nationwide for the Tesla Cybertruck.
Tesla will unveil the robotaxis event this Thursday. Ahead of the event, TSLA stock traded at a 68 times price-to-earnings ratio. The stock indicated a bearish “double top” at $260 between July and late September.