The Tesla Bubble and why P/E Ratio's MatterTesla is high by any standard value or technical view.
Here I use the PE ratio as compared to TSLA, AMZN, AAPL and GOOGL and a super stock I am going to call "Amagoogle" to demonstrate just how overdone I think Tesla is.
To summarize, I will show:
How relative P/E (Price to Earnings Ratio) compare. Growth stocks typically have very high PE ratio's , mature industries like utilities and consumer staples tend to be on the lower side. For a benchmark, the S&P 500 PE right now is 37.97 with it's all time high spike at 123.73 and it's low at 5.31. The average is 15.88. Telsa's is currently 1,637 ! www.multpl.com
If Tesla had Alphabet's earnings but maintained it's current PE, it would have to trade at $84,708 PER SHARE
If Tesla had Apple's very high PE, it would be trading at $45.50 per share.
If Telsa had a double whammy of Alphabet's great EPS AND Apple's arguably very high PE, Tesla would be at $4,709 per share - but that would mean a growth in earnings of 103.58 TIMES.
Book recommendation to help avoid these scenario's: read.amazon.ca
Happy Trading!
Rob
XAUUSD LONG 📈Hello Traders, don't forget to follow this PROFILE SO YOU GET NOTIFIED EVERY TIME WE POST📲
First trading week of 2021🥳
2020, despite all this COVID issues, was a very good year to ZIONTRADES.🙏🏾❤️
Created my own trading group, we are over 350 members in all groups, banked over 13,578 PIPs during 2020.🤯
We are really ,looking forward to 2021 !😎
So, here we have a possible LONG position on XAUUSD, as American Dollar keeps weakening.
I'm expecting to hit our TP in 6 trading hours .
We will enter this trade as soon as the markets re-open.
Fell free to share your opinion with us guys👀
HBAR - a phantastic second chance opportunity !!I was lucky when I bought HBAR right at 31.12.2019, at around 1 cent !
One month later there was the announcement of Google Cloud partnership that made price skyrocket to 8 cents in a matter of days !!
In satoshi terms the price has come down to around 100 sats again,
Offering us a fantastic second chance entry point !!
Moreover there is a huge 1 year positive divergence between price (red line) and RSI (green line).
I have 0 doubt !
This is as a good deal as it can get !!
I am accumulating !
possible move for google all this thing we see and analysis the price move up and down as other stocks. there is a possibility of retrace and back to high as area i locate.this is most possible move. if price not back to last level of high the price go up at 1824. and if break this level then go higher 1957. i update there my all views. stay with me further analysis
ADT is it about to rocket?With the huge exodus out of cities to the urban areas, ADT has no doubt been benefiting. Recently, ADT CEO on google-ADT partnership and surge in new homebuyers buying security systems was on CNBC: www.cnbc.com
Remember too, that Google has retired is own home security system, and now owns 7% of ADT.
Additionally, ADT announced it has partnered with Lyft on Emergency Help, a new safety feature powered by ADT, which allows passenger and driver feel safe.
Last Earnings report wasn't so rosy, but the future is bright:
Reports Q3 -$0.08 v -$0.02 y/y, Rev $1.30B v $1.30B y/y
- Raises FY20 Rev $5.2-5.35B v $5.28Be, adj EBITDA $2.15-2.23B, FCF $650-725M (prior Rev $5.05-5.30B, adj EBITDA $2.1-2.2B, FCF $625-725M)
- Adj EBITDA $564M v $624M y/y; margin 53.9%
- Trailing twelve-month gross customer revenue attrition of 12.9%, +60bps y/y
CEO: “ADT delivered strong financial and operating results during the third quarter. We improved our revenue payback and customer retention to record levels, grew RMR additions and increased our subscribers. These improvements came while delivering solid financial results and ensuring we continue to prioritize the well-being of our employees and customers,” stated Jim DeVries, ADT’s President and CEO. “Importantly, we are making good progress on numerous strategic initiatives. Our partnership with Google is off to a very strong start and we have worked together to accelerate selected offerings to customers in 2021. We also continue to enjoy strong momentum in our core business. Our consumer financing program has been well received, we’re generating record sales in our DIY channel, the Defenders acquisition is helping to drive growth and efficiency, and we continue to strengthen our capabilities to best serve our commercial customers.”
On 10/27 ADT CitiGroup Raised ADT to Buy from Neutral, price target: $10, Average target price is $12.
Compare ADT with Brinks. Brinks up 70% while ADT is flat. . .
Trade setup:
Long: 8
Stop:7
First price target: 10
GOOGLE Sustainable growth for the next 3 months?Just a fractal play but tell me don't those two sequences have a lot in common? First an aggressive Bull Phase 1 and then a more sustainable Bull Phase 2, supported by the 1D MA50 (blue trend-line). Can GOOG repeat this pattern?
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Still bullish on Alphabet. NASDAQ: GOOGLI was looking through the hightech QQQ stock index and thought I might do a review on some of the major players in that index. Still bullish on Alphabet, but it's looking like it's closer to the end here. RSI shows slowing momentum, EWO is in agreement with my fractal mapping. Expecting a fifth wave to complete now. Fibonacci goals are inplace. If my count is right then we are correcting, and this too will drop unless FedReserve doesn't step in and start printing even more money. I will be watching this space closely. NFA .
BITCOIN - Current situation & short term key pointsNovember is historically the best performing month for Bitcoin. We’re 8 days in and already over 8% in the green. After closing above $13,000 for the first time since 2017, we’ve been in a very strong uptrend. Bitcoin market cap dominance over altcoins has risen from 59% to 64%+ since September, indicating bullish sentiment as people are converting their altcoins into Bitcoin.
In this situation there truly is not much stopping us from testing the 2017 all time high of 20k.
Not only that: the market in general has been positively going up recently. The dollar value has also been in a downtrend (when the Dollar goes down, bitcoin price usually goes up). I think this is a point that few people think about. Especially when considering 70% of Bitcoin trading is done through USD. 2nd place is the Japanese Yen at 20% (although it was over 50% a few years ago).
However even with this strong upside action, Google trends is showing that mainstream attention is nowhere near as high as it was in 2017. It is probably safe to say that we haven’t reached hysteric FOMO(fear of missing out) yet. This could mean that we still have a lot of room for growth.
---Short term price action---
After Thursday’s strong 10% leap up, we saw a Doji close and a slight bearish divergence in the RSI, signaling a possible break and downside action, which did happen. I myself took some profits around 15.6k, and am expecting a few more possible days of downward correction. For now I am looking at two zones for re-enter - 14k psychological even point, as well as ~13.4k which is the .618 fibonacci level from the 2017 high of 20k and a previous resistance.
The dollar currency index is currently at a crucial support - I am waiting to see if it bounces back up or continues down. It will be interesting to see how the market and currencies continue to react to the election and everything going on.