Tesla's stock surged to a record high of $400 after Goldman Sachs raised its price target to $345, driven by strong sales figures, growth plans, and investor confidence in CEO Elon Musk's ties with the incoming Trump administration. The company's advancements in robotics and AI, along with the popularity of the Model Y in China, have further fueled investor interest. Analysts highlight Tesla's international sales and AI demand as key growth drivers.
Goldman Sachs is in discussions to become an authorized participant for BlackRock and Grayscale's proposed bitcoin ETFs, which would position the bank as a significant entity in the management of these funds. This comes amid growing investor anticipation for the SEC's potential approval of the first U.S. spot bitcoin ETF, with some expecting a decision before January 10. However, skepticism remains, with predictions from crypto firm Matrixport suggesting a possible decline in bitcoin prices if the SEC rejects the applications. Meetings between SEC staff and stock exchange officials have fueled speculation about an imminent ETF approval.
Rivian Automotive's stock price dropped significantly at the start of 2024 due to a reported slowdown in Q4 deliveries, despite exceeding production forecasts. Goldman Sachs issued a lukewarm response by raising its price target on Rivian but maintaining a neutral recommendation, citing concerns over the company's ability to sustain pricing and growth in an increasingly competitive EV market. Investors are wary of Rivian's long-term profitability, with consensus views not expecting GAAP profits before 2030, leading to early-year selling of the stock.
Goldman Sachs is reportedly in discussions to become an authorized participant (AP) for Bitcoin ETFs proposed by BlackRock and Grayscale, indicating a significant move by the Wall Street giant into the cryptocurrency space. As an AP, Goldman would be responsible for creating and redeeming ETF shares, a crucial function for the ETFs to reflect the value of their underlying assets accurately. This development follows the trend of major U.S. banks showing increased interest in cryptocurrencies, facilitated by a cash-based mechanism for handling Bitcoin, which is expected to help gain SEC approval for these ETFs.
Goldman Sachs has established its first life sciences fund, West Street Life Sciences I, with $650 million to invest in various biotech startups, including those focused on genetic medicine, cell and immunotherapies, synthetic biology, AI, diagnostics, and life science tools. This move comes despite a challenging environment for raising first-time funds in the biotech sector, which saw a significant drop in fundraising totals for new VC funds in the previous year.
The anticipation of a U.S. bitcoin spot exchange-traded fund (ETF) approval, particularly following leaks from BlackRock, has led to a significant surge in Bitcoin's price, surpassing $45,000. Goldman Sachs and other financial giants predict that the approval of a bitcoin ETF could not only boost Bitcoin but also positively impact other cryptocurrencies like Ethereum, XRP, and Solana. The market is closely watching the SEC's decision, with expectations of approval as early as the first week of 2024, which could lead to increased adoption and investment from institutional players.
Goldman Sachs anticipates a significant expansion of the cryptocurrency market in 2024, driven by the maturation of blockchain technology and increased institutional adoption. The bank's head of digital assets, Matthew McDermott, believes that the efficiency benefits of blockchain are most impactful at scale and expects traditional assets to be tokenized, enhancing liquidity and transparency. The potential approval of Bitcoin ETFs is also seen as a catalyst for investment from pension funds and insurers, although growth may be gradual throughout the year.
Goldman Sachs has entered the race for a bitcoin spot ETF, joining other financial giants in anticipation of the U.S. SEC's decision, which could come in early 2024. This move, part of the so-called "Cointucky Derby," is expected to significantly boost liquidity in the crypto market by attracting institutional investors. The potential approval of a bitcoin ETF is seen as a catalyst for a new price surge in bitcoin and other major cryptocurrencies like ethereum, XRP, and solana, especially with the upcoming bitcoin halving event.
