Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top

unexpectedly holding strong

$Tesla(TSLA.US)$ Tesla is unexpectedly holding strong. Their fundamentals are increasingly becoming better, and despite challenges their cars are becoming more prolific throughout the country and beyond (I see several everyday in NY, it amazes me). Despite this, Tesla is still overvalued, but perhaps if all goes well it can grow into it's evaluation before the market scrutinizes it and it comes crashing down. Nonetheless, I don't see Tesla as generating a good return, at least relative to other beaten down stocks/opportunities. Great for trading, whether it be day trades or swing trades, but I think there are much better stocks at much bigger discounts from a fundamental perspective (p/fcf, debt,P/S and P/E) for long term holds ~5 years at least. Tesla ain't going anywhere, it will be here to stay, but that doesn't mean the stock will skyrocket. Believe it or not history repeats itself, before it was Intel, Microsoft, and many other tech stocks during the early 2000s. Now Intel has tripled revenue and profits from those times but its stock has failed to surpass the all time highs from that time period. Microsoft took a decade before it broke even, and even apple nearly went bankrupt several times, Amazon hit 7 dollars. But none of these companies are anywhere close to dying, in fact they are growing and are mega caps. Now sure you may look at Microsoft and Amazon and say you chose your stock well, but it took you a 1/8 of your lifespan, and 1/6 of your adult life span (assuming you live until 80) to finally be right. Not to mention you'd have to hold on for 10 years as the stock that you owned crashed 90%, and then hold on longer even as it went up 300%+ from 7 to 28, which lets be honest, most people are cutting their losses or taking profits by the time they hit anywhere near today's value. This is the danger investors need to be aware of, companies as great as this always receive a lot of hype and they grow so fast that there is no future room for their stock to grow despite the company itself clearly growing. Could Tesla be different? Probably not, the most dangerous thing to say is "it's different this time" after all. Don't pull a Biden and change the definition of a recession whenever it's convenient for you. Learn to invest based on fundamentals and value and find out whether a company is worth buying into, this post unfortunately won't get into the math of it.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
4
+0
Translate
Report
19K Views
Comment
Sign in to post a comment
    Value investing is the only (right) type of investing. Follow my paperfolio.
    122Followers
    44Following
    612Visitors
    Follow