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Shares of Tesla Inc. (NASDAQ: TSLA) and Broadcom Inc. (NASDAQ: AVGO) soared in early trading on Tuesday, riding a wave of positive investor sentiment. Meanwhile, Paramount Global (NYSE: PARA) stock continued its downward slide as controlling shareholder Shari Redstone killed a potential merger deal with Skydance Media.
Tesla Stock Jumps on Musk Pay Package Vote and Texas HQ Move
Tesla shares jumped as much as 7.2% to $185.70 after CEO Elon Musk indicated shareholders were voting in favor of his $56 billion pay package from 2018, which a Delaware judge had previously invalidated.
The vote carries more symbolic than legal weight, as it’s unclear if the court will accept the re-vote. Shareholders also voted on moving Tesla’s state of incorporation from Delaware to Texas, with Musk suggesting the proposal was passing by a wide margin.
Approval of the pay package is expected to remove an overhang on the stock and ease uncertainty around Musk’s continued leadership.
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Broadcom Soars on AI Chip Forecast and Stock Split
Broadcom’s stock price reached new heights, surging 14% to $1,707.48, driven by the company raising its revenue forecast from AI chips to $11 billion for 2024 and announcing a 10-for-1 stock split.
Strong Q2 earnings, with AI product revenue reaching $3.1 billion, and an increased full-year revenue forecast of $51 billion also boosted investor confidence. Broadcom’s AI chips are crucial in applications like OpenAI’s ChatGPT, and the company has attracted significant orders from large cloud providers.
Paramount Tumbles as Redstone Ends Skydance Talks
Paramount Global stock fell further on Wednesday, down about 2% in early trading after sinking nearly 8% on Tuesday. The drop came after Shari Redstone, who controls Paramount through her family’s holding company National Amusements (NAI), ended merger talks with Skydance Media.
The collapse of the deal has had an immediate negative impact on Paramount’s stock price, with the lack of a clear path forward in terms of a merger or acquisition likely to weigh on investor sentiment in the near term. Uncertainty over leadership, following the recent departure of CEO Bob Bakish, may also be contributing to the decline.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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