Not sure about that $TSLA stock....it's pretty dang overvalued right now. It's being held up by Elon fanboys.
Another factor driving the spike in Tesla is their entry to the S&P 500. It was announced in Nov and that led a sustained demand for the stock from funds that track the S&P and that did not have Tesla, or enough Tesla to have their balanced S&P 500 portfolio. You can track from the announcement in Nov and the subsequent rise as the demand for the stock increased from funds which had to buy it.All of that speculation is already baked into their market cap right now, which is 663b. Their P/E ratio is absurd as well. While they want to be all those things, they still have a lot to prove. Ford still produces 7-8 times more vehicles in a given year than Tesla. As more auto makers embrace electric vehicles, Tesla will see an increase in competition here. Their solar division hasn't proven itself yet. Also, who isn't working autonomous vehicles at this point? Tesla made 31b last year. To put this in perspective this is less than 10% what Amazon made, yet comparing market caps, TSLA is 33% of what AMZN is at. In the end TSLA's market cap is lifted in a large part to speculation. Could they make all of this stuff happen? Maybe, but I wouldn't put them in the same bucket as MSFT.
Another factor driving the spike in Tesla is their entry to the S&P 500. It was announced in Nov and that led a sustained demand for the stock from funds that track the S&P and that did not have Tesla, or enough Tesla to have their balanced S&P 500 portfolio. You can track from the announcement in Nov and the subsequent rise as the demand for the stock increased from funds which had to buy it.
I agree with the general premise that, based on the numbers, the stock seems way over valued. Based on their output (cars), each one produced has a value of $1M+ or something based on the stock price. They have multiple competitors from basic to luxury, all of whom have a longer history and larger and as loyal customer base.
Just my 0.02
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What a great week so far for AMC.
Dont get left behind, anything under 30 is still a good buy. A short squeeze is shaping up nicely, should be as good or better than Gamestop.
At my original post date march 17th AMC was at 13$, since it has doubled to 26$. I am predicting at least 100$ within 30 days, although I am not a financial advisor.]
Crush is not crushing it at all. Lost all his $$$$ on a few bad bets. He did find out who he bet with were actual liars and cheaters but that's all behind me now and Karma already took care of one of them. Sometimes you win and sometimes you lose it all. I'm making a come back and have big plans after all the BS is over with. Hey Dom, is this a Bear or a Bull market?Crushing it! No one else got in?
CNBC is reluctantly covering the so called "Dumb Money"
Crushing it! No one else got in?
CNBC is reluctantly covering the so called "Dumb Money"