Reuters Enlarge Image The Tesla Model S SAN FRANCISCO (MarketWatch) — Among the companies whose shares are expected to see active trade in Monday's session are Tesla Motors Inc., Facebook Inc., and Netflix Inc. in the wake of the sell-off in so-called momentum stocks recently.
/quotes/zigman/118681/delayed/quotes/nls/tsla TSLA 212.23, -13.18, -5.85% Tesla Motors Inc,
Tesla (TSLA) fell sharply on Friday, slipping into bear market territory, along with Netflix (NFLX) and Facebook (FB) . All three stocks have gained spectacularly in 2013, although Tesla shouldered the burden of becoming the poster child of momentum plays due to its 344% rally last year.
Tesla and Netflix are what short-seller Andrew Left at Citron Research labels as "cult stocks," those which have diehard followers who are devoted to its products and in turn, similarly worship the stocks.
It's not immediately clear what's behind the recent fire sale of these once highflyers although John Spence at Covester believes fears about higher interest rates sooner than later and investors scaling back risk could be factors.
Indeed, Jim Chanos of Kynikos Associates who at times take positions that may be counter-intuitive, voiced caution on Tesla and Facebook as early as September, noting that market caps of these stocks are significantly above tradeable floats, making them vulnerable to volatility.
Other high-profile stocks that also entered bear territory following Friday's rout are Amazon.com Inc. (AMZN) and Pandora Media Inc. (P) .
Biotechnology stocks which also have had a strong run-up in recent months—such as Intuitive Surgical Inc. (ISRG) and Alexion Pharmaceuticals Inc. (ALXN) —were also some of the biggest losers.
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