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JPMorgan Chase Now Bearish on Tesla, Circle, Rivian, Snapchat and Four Other Stocks As S&P 500 Trades at All-Time Highs: Report - The Daily Hodl
Financial services titan JPMorgan Chase is suddenly turning bearish on the stocks of popular tech and restaurant companies as the S&P 500 hits record highs.
JPMorgan analysts say several big-named stocks appear overvalued and may be smart shorting plays for investors, reports Barron’s.
JPMorgan analyst Ryan Brinkman says Tesla (TSLA) currently has a “sky-high valuation” and expects earnings to plummet after President Trump reduced government subsidies for electric vehicle (EV) purchases. Brinkman also predicts that Tesla’s robo-taxi initiative is “likely to disappoint.”
He is also bearish on Tesla’s rival Rivian Automotive (RIVN). According to Brinkman, the firm’s efforts to improve its balance sheet “will likely [be] hampered by reduced EV subsidies and tariffs.”
Next up, JPMorgan analyst Kenneth Worthington says Circle Internet Group (CRCL), the stablecoin issuer, is due for a correction.
“Circle is a market leader in stablecoins with amazing technology, we view competition emerging and its current valuation as excessive.”
Moving on to the social media sector, JPMorgan analyst Doug Anmuth says Snapchat (SNAP) faces continual hurdles, including big brand advertisers’ “volatile” spending as well as the firm’s “poor track record on execution.”
Bumble (BMBL) is also earning a bearish outlook as JPMorgan analyst Cory Carpenter says the dating app stock faces a “structurally challenged” online dating sector, and the firm “is early in its turnaround effort.”
Other stocks JPMorgan analysts say are among the best candidates for investors to look for corrections include the restaurant chain Cheesecake Factory (CAKE), chipmaker Intel (INTC) and fast-food chain Shake Shack (SHAK).
As of Monday’s close, the S&P 500 is trading at record highs at 6,286 points.
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