Investing

Midday Meme Stock Report for 11/4: Cassava, DraftKings, Offerpad, Tesla

The Dow Jones industrial average was down about a quarter-point at noon Thursday, while the S&P 500 was up by an equal amount and the Nasdaq was about 0.6% higher. Yields on the 10-year Treasury continued to slide after Wednesday’s Federal Reserve announcement revved up demand by reaffirming its decision to let interest rates remain where they have been. Inflation hawks lost another one. Crude oil dipped close to $80 Thursday morning but later topped $81 again. The broad markets were mixed about halfway through the noon hour.

Thursday’s big news was a rise of more than 40% in the share price of Austin, Texas-based Cassava Sciences Inc. (NASDAQ: SAVA). In August, a whistleblower petition was filed with the U.S. Food and Drug Administration alleging data anomalies and manipulation, including image alteration, in a report published in the Journal of Neuroscience related to the company’s Alzheimer’s drug, simufilam. Thursday morning, the journal said it found no evidence of manipulation in the report.

Tesla Inc. (NASDAQ: TSLA) traded up about 2% in the noon hour Thursday. The company had no specific news, but that didn’t deter investors from running the price up to a new all-time high. The difference between the stock’s price and analysts’ average price target of $764 is about $480, the widest it’s ever been. The recently announced deal with Hertz (whether signed or not), is just the latest springboard for Tesla’s soaring shares.

Online real estate broker Offerpad Solutions Inc. (NYSE: OPAD) traded up by more than 7% in the morning. Following Zillow’s share price collapse after the company said it was leaving the home-flipping market, Offerpad and OpenDoor are the two remaining players in the same business. Both managed to avoid overpaying for homes, something that Zillow’s algorithm was apparently incapable of doing. Offerpad reports quarterly results next week, so we’ll see how the company fared and what its plans are.

DraftKings Inc. (NASDAQ: DKNG) traded down about 5.5% in the noon hour Thursday. The company is scheduled to report quarterly earnings before markets open on Friday, and the early signs are not positive. Both MGM Resorts and Penn Gaming already have reported disappointing numbers. In our preview of what to expect from DraftKings’ earnings, the answer turned out to be not much.

As the noon hour ended Thursday, Cassava Sciences stock traded up about 37%, at $77.75 in a 52-week range of $6.70 to $146.16. The average daily trading volume is around 7.7 million shares, and more than 28 million had traded already on the day.

Shares of Tesla traded up about 1.6% to $1,233.52, in a 52-week range of $396.03 to $1,243.49. The average daily trading volume is around 21.2 million shares, and about 17.7 million had already changed hands.

Offerpad traded up about 6% to $7.75, in a 52-week range of $6.80 to $20.97. Only about 10% of the daily average volume of 3.7 million shares had traded thus far.

DraftKings stock traded down about 6%, at $44.09 in a 52-week range of $38.44 to $74.38. The average daily trading volume is around 12.8 million shares, and nearly 17 million had been traded already.