NEW YORK, NY / ACCESSWIRE / June 13, 2018 / Tesla shares saw a gain on Tuesday after announcing that there would be job cuts made at the company. Twitter shares rose higher and even hit a three-year high on remarks from a JPMorgan analyst about value for advertisers increasing. The analyst also upped his price target on the stock to $50.
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Tesla, Inc. shares closed up 3.21% yesterday on trading volume nearly three times higher than usual. The electric vehicle maker announced that it would be cutting approximately 9% of its work force, mostly salaried jobs, in order to save money. CEO Elon Musk sent an email to employees on Tuesday explaining the cuts and wrote, "As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9 percent of our colleagues across the company." He added, "These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months." After the job cuts Tesla will see its workforce go back down to around 37,000 employees. This was about the same number the company saw at the end of 2017. Musk also tweeted about the job cuts and said it was "difficult but necessary."
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Twitter, Inc. shares closed with a gain of 5% yesterday and also hit a brand new high of $44.33. The stock traded on significant volume at nearly 52 million shares and hit a three year high after an analyst at JPMorgan raised his price target on the stock. Doug Anmuth of JPMorgan raised his price target from $39 to $50 and reiterated an "overweight" rating on the social media stock. According to the analyst, value for advertisers is increasing and Twitter should see revenue growth of 27% in second quarter and 29% in the third quarter. Anmuth wrote, "Twitter remains one of our top ideas, along with Facebook (FB) and Amazon (AMZN), and is on the JPMorgan Analyst Focus List. And we believe considerable opportunity remains with large marketers." Anmuth says the 2018 FIFA World Cup will have Twitter as a powerful platform to engage in conversations over the matches. Anmuth wrote, "Twitter's partnership with FOX Sports will provide near real-time highlights of every goal scored, and video is a major area of strength for Twitter, already driving more than half of the company's total ad revenue." It was in April that Twitter posted its first quarter earnings report revealing revenue of $665 million, a 21% increase, and adjusted earnings increasing 19%.
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