TOP 3 most traded CFD stocks of this month: Tesla, NVIDIA, Shopify

Results season for U.S. companies is underway and it comes with increased volatility. Movements in dozens of percent after announcing positive or negative financial statements are no exception. Significant price movements traditionally attract traders and speculators, profiting from them. We are bringing you a summary of the top 3 most traded stocks in Purple Trading for July. What is behind their popularity and what is the outlook for the future? You can find answers to these questions in today’s article.

Tesla - unexpected danger on the horizon?

1st place for the most traded stocks in Purple Trading isn’t too surprising. Tesla is one of the most sought-after stocks in the world. Thanks to Elon Musk’s “big mouth” the company is practically constantly on the front page of the media and thanks to almost constant volatility, this stock is very popular among traders. However, Tesla wasn’t only generous to the media and speculators, but also to the long-term investors - in the last 5 years, this stock has moved up 1,000 %
How did the last few weeks look from the point of view of Tesla? The company has already traditionally announced the number of delivered cars for the previous quarter before the financial results. The car company has delivered 254,695 new cars, which was more of a disappointment. After 2 years Tesla has ended its streak, where every quarter it has delivered more cars than the previous (in the first quarter Tesla delivered over 310,000 new cars). At fault was the closing of the largest Giga factory in China, which was halted due to the zero-covid policy. The company has problems with increasing production volumes in new Giga factories in Texas and Germany, which even Elon Musk called “gigantic money furnaces”. Tesla has also lost its position as the largest electric car manufacturer in the world - Chinese car manufacturer BYD financed by Warren Buffet has sold around 640,000 new cars in the first half year, while Tesla has sold “only” over 560,000 cars.

Tesla graf purple trading MT4
Graph 1: Tesla shares on the MT4 platform on the H1 timeframe along with 50 and 100-day moving average

The financial results alone were accepted positively by the investors and the stock has increased by more than 10 %. Tesla has achieved sales of $16.9 billion and profits of $2.27 per share. The company has also gotten rid of its $1.5 billion worth of bitcoins with a significant loss. Elon Musk justified this by building cash reserves due to the uncertainty that still prevails in China around the coronavirus. The latter will be one of the main risks for the rest of the year, as it significantly affects production at the Shanghai factory. In addition to the uncertainty caused by the coronavirus and inflation, Tesla may also face one surprising risk - Elon Musk's legal battle with Twitter.

Over the past few years, we've already seen Tesla shares rise and fall with Elon Musk's performance and excesses. The battle with Twitter can cost him a lot of energy and financial resources, which can then significantly affect Tesla itself. One thing is certain - Tesla will continue to be one of the most sought-after companies both among the media and business people.

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NVIDIA Corporation - Support from the highest places

The famous manufacturer of graphics processors has been one of the biggest favorites among investors in recent years. This is evidenced by more than 300% growth over the last 5 years. In addition, NVIDIA shares are currently trading almost exactly 50% cheaper than when compared to the all-time high of last November. Unlike Tesla, NVIDIA did not announce its second-quarter financial results in July, nor did it issue any groundbreaking news. So what is behind the popularity of NVIDIA shares?
NVIDIA has come into the media and investors' sights in recent days in a rather unconventional way. The company's shares worth $5 million were bought by Paul Pelosi. It might not be too surprising if the name doesn't mean anything to you. However, you probably know his wife Nancy, because she is the Speaker of the House of Representatives of the United States of America. She is quite well-known for her business appetite, in the past she has bought shares in companies such as Apple, Microsoft, and Alphabet. The business activity of the Pelosi family is frowned upon by the public, with many wondering whether a person in such a high government position should buy publicly traded companies, given the potential access to classified information. The purchase of NVIDIA stock may be all the more scandalous considering that this week the US Senate is expected to vote on financial support for U.S. chipmakers. Whether or not you believe government officials and those close to them should buy stocks is up to each of you, but Nancy Pelosi's portfolio is highly scrutinized and every subsequent purchase is highly publicized.

Nvidia graf purple trading MT4
Graph 2: NVIDIA shares on the MT4 platform on the H1 timeframe along with 50 and 100-day moving average
NVIDIA's popularity may also be related to the upcoming financial results for the past quarter, which the company will announce at the end of August. What can we expect from NVIDIA? Revenue is expected to reach $8.12 billion, which would be a 25% year-over-year improvement. Earnings per share should then be around $1.25 - a growth of 21% compared to the same quarter in 2021. We can expect to see similar growth percentages for the whole year 2022 - sales should reach $33.7 billion and profit per share at $5.4 (Zacks). With NVIDIA, we have been used to more rapid growth in recent quarters, but given the current events in the world, we cannot be surprised at a slower pace. We mustn’t forget the company's large exposure to the world of cryptocurrencies. The second half of the year will be no less interesting.

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Shopify - an upcoming bounce from the bottom?

Shopify stock may be a rather surprising representative among the most traded to some. However, for CFD traders looking for stock volatility, this is a very rewarding title. Since the beginning of the year, shares of the Canadian e-commerce company have lost almost 75% of their value. The “big winner” from the pandemic period thus became a “big loser”. However, everything does not have to be so tragic - in the second half of July, on the contrary, the shares strengthened by almost 30%. What was the reason for such massive growth? The development of Shopify's shares has been linked (as it has been throughout the year) to market sentiment - the Nasdaq technology index rose by more than 10% during the same period. The positive mood on the markets pumped adrenaline into the veins of risk stocks, which have lost significantly during the year so far, one of them being Shopify.

Shopify graf purple trading MT4
Graph 3: Shopify shares on the MT4 platform on the H1 timeframe along with 50 and 100-day moving average

Additionally, Shopify will report earnings this week (July 27th). What can we expect? Sales should increase by 20% year-on-year to $1.4 billion, and EPS (earnings per share), on the other hand, should fall significantly to about $0.03 per share. The growth rate of the company's sales should thus be weaker for the second time in a row, but some are looking to Netflix for positive inspiration. This managed to stabilize sales and limit the loss of subscribers for the second quarter, the outlook for the rest of the year could then be more positive. Although the business models of Netflix and Shopify are very different, investors are looking for parallels here and trying to grab every possible positive. One of them could be the acquisition of Deliverr, which took place in May. Regardless of the economic results, Shopify shares will most likely continue to be significantly volatile. The company's shares fell more than 20% in one day after the last two earnings announcements

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.60 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.