It's been a wild week in the stock market. Stocks surged to record highs yesterday before the closing bell, and many bulls think the rally will continue. Here's a look at the top stocks making headlines this week and how to play them.
Tesla Motors (NASDAQ:TSLA) kicked off the week with its stock climbing from $56 to $97, after upbeat news from the electric-vehicle maker pressured short sellers. Tesla's revamped financing program, first profitable quarter, and stronger-than-expected demand for its Model S cars have certainly contributed to its top stock status this month. However, there's more to the story.
While all of these developments are excellent for the stock, the high short interest is the real reason Tesla was one of the fastest-climbing stocks this week. In fact, as of April 30, more than 44% of Tesla stock was sold short. Today, the short percentage of float has fallen to about 36%, as short sellers are being forced to cover their positions -- in turn pushing shares higher. Clearly, Tesla isn't a stock you want to bet against.
Google (NASDAQ:GOOGL) is also a top stock this week, as investors pushed the stock up to a record high of more than $900 a share today. The pop in its stock comes on the heels of exciting news that Google could announce a new streaming music service.
But that's not all. Google is also expected to unveil a product refresh of its widely used maps platform. With other potential hit products on the horizon, including Google Glass and Fiber, we may see the tech stock break the $1,000 mark before year's end.
Finally, Yahoo! (NASDAQ:YHOO) is in the news this week after the company said it plans to launch an aggressive advertising campaign targeting younger users. Marketing to a younger audience is a smart plan for the Web portal company, as it attempts to revive user engagement on yahoo.com and attract new users.
The stock is up more than 2% so far this week and more than 33% year to date. However, don't expect Yahoo! to become cool overnight. It will take some serious ad spending and inventive marketing efforts to steal younger users' attention away from social sites such as Facebook and Twitter.