Tesla, Coinbase Help the Nasdaq Hold Its Ground Monday - The Motley Fool

Stock markets remained volatile on Monday. However, the Nasdaq Composite ( ^IXIC 0.00% ) in particular remained resilient even in the face of ongoing geopolitical pressure. After having opened down around 1%, the Nasdaq bounced back to post gains briefly during the morning and was roughly unchanged as of 12:30 p.m. ET.

There were a couple of strong stocks that helped bolster the Nasdaq overall. Tesla ( TSLA 7.48% ) shares regained some of their lost ground from last week, as some bearish stock analysts had a slightly less pessimistic view of the electric vehicle (EV) pioneer's longer-term prospects. Meanwhile, Coinbase Global ( COIN 7.88% ) gained ground despite some cautionary comments from Wall Street, as the cryptocurrency universe recovered from some of its recent losses.

Tesla moves out of the slow lane

Shares of Tesla gained more than 6% early Monday afternoon. The Elon Musk-led automaker didn't exactly earn positive comments from analysts, but a slightly less negative view was enough to give shareholders the inspiration they needed.

Blue Tesla Model S on a road at twilight.

A Tesla Model S. Image source: Tesla.

Analysts at Bernstein haven't had a favorable view of Tesla's prospects, and the fact that they kept their underperform rating on the stock shows they haven't dramatically changed that view. Nevertheless, Bernstein did boost its price target on the stock by 50%, resetting its expectations from $300 per share to $450.

The move higher in Tesla's stock also came amid news that Japanese battery producer Panasonic would set up a factory to boost the production of its high-capacity lithium-ion batteries. Tesla intends to use Panasonic's 4680 model battery when it's available, and the Japanese producer hopes to have the factory up and making batteries by 2023 or 2024.

Tesla's stock has seen a big pullback as investors have lost confidence in high-growth stocks more generally. However, demand for its vehicles remains robust, and seeing a key battery supply-chain issue move toward resolution should help bolster the bullish case for the EV maker.

Coinbase rises on crypto revival

Meanwhile, shares of Coinbase Global were up nearly 5%. The cryptocurrency exchange provider benefited from some rebounds in digital asset prices following a big swoon last week.

Most major crypto prices were well off their lows on Monday. Bitcoin ( BTC 3.17% ) moved higher by 5% to get close to the $41,000 mark. Ether ( ETH 2.62% ) rebounded to $2,800, and the smaller but still prominent crypto asset Terra ( LUNA -0.80% ) saw double-digit percentage gains.

Even with the gains, Coinbase remains nearly 50% below its highs. Yet that's not entirely inconsistent with the crypto market more broadly, as Bitcoin, Ether, and other digital assets are far lower than their highest levels as well.

In the long run, Coinbase is looking to diversify its business to deemphasize the importance of trading activity and instead participate in broader cryptocurrency trends, such as decentralized blockchain technology, non-fungible tokens, and improved wallet technology. If those efforts are successful, then Coinbase could evolve into a more reliable generator of revenue and income even when crypto markets aren't booming.

Gains from individual stocks like Coinbase and Tesla won't be enough by themselves to prop up the Nasdaq. However, it's comforting to remember that even when broader market measures aren't showing big gains, you can still find some businesses that are producing powerful results and rewarding their shareholders.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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