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The tough run in Tesla and Moderna shares so far this year isn't ending anytime soon, according to Courtney Garcia, senior wealth advisor at Payne Capital Management Garcia appeared on CNBC's "Power Lunch" on Thursday to give her hot takes on some of the market's biggest movers. Here is what she said during "Three-Stock Lunch." Tesla Garcia said she would stay on the sidelines with Tesla, citing the electric vehicle maker's sky-high valuation and a stiffer auto market.
According to the financial advisor, the assumption that Tesla will benefit from CEO Elon Musk's close relationship with President Donald Trump and from its lower-priced EV expected later this year is not enough to bolster a bull case for the stock. Autos remain Tesla's core business and the industry is slowing, and also facing price cuts in regions like China with competitive EV markets, she said. "My biggest problem with Tesla is just the valuation.
It trades[at] over 105 times earnings, which is not only expensive to the overall market, but that's even more expensive than its own historical average," Garcia continued. "Whether I find another place to add my money or I wait for a better entry point, I would not jump in with two feet in Tesla right now." Tesla shares are down 42% from their all-time high in December, hurt by a slowdown in sales.
The stock is down about 30% so far in 2025, erasing its election-related euphoria. Moderna Vaccine maker Moderna is another sell for Garcia as the stock continues to garner pushback. The advisor noted Moderna's main source of revenue is from its Covid vaccine, and that bets on the company's mRNA pipeline have not yet been profitable.
"I think there could be some long-term opportunity with other uses of mRNA, but in the meantime, again, I'd stay on the sidelines here," she told CNBC. "It's way too concentrated in Covid vaccines, which I don't think there's a huge opportunity [for] in the short term." Moderna shares slid 7.
5 Thursday after reports that federal health officials under the Trump administration are re-evaluating the company's $590 million contract to help develop a bird-flu vaccine, which was awarded by the Department of Health and Human Services in January during the Biden administration. The stock is down 25% this year as sales of its vaccine have fallen amid a drop in Covid-related demand. Shares have slumped 68% over the past year.
Ebay Garcia thinks e-commerce platform Ebay is a stock to buy, even after the company's quarterly report disappointed Wall Street. Shares of Ebay tumbed 8.2% on Thursday after the company forecast first-quarter revenue below analyst estimates, citing consumers scaling back discretionary spending.
The stock is up 2.5% year to date, and has soared 43% over the past 12 months. Despite the latest downbeat sentiment, Garcia is bullish on Ebay's future growth opportunities.
"This is a company that has, I think, really been showing that they're willing to innovate," Garcia said, making the stock worth buying in the short term. Garcia mentioned Ebay's recent partnerships with Facebook Marketplace and OpenAI and its success with collectibles and luxury goods as growth catalysts that will have a more lasting impact than one quarter's disappointing forward guidance, which she partly blamed on fee changes for eBay's UK sellers..
