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This is a pretty great walk down memory lane, but it helps to keep in mind _why_ Yahoo failed so badly. After all, history does not repeat itself but it does r
by proverbialbunny 6y ago
This is a pretty great walk down memory lane, but it helps to keep in mind _why_ Yahoo failed so badly. After all, history does not repeat itself but it does rhyme.
Yahoo failed, because a new competitor popped up, Google. Yahoo at one point in time was the market leading search engine, which was a pretty big deal. But then when Google popped up, not only did it take users from Yahoo, it took its market cap as well. If you had invested in Yahoo, gotten out when its customers started moving to Google, and then invested in Google when it went IPO you'd be quite rich today. Value investing wins again.
What if we look at TSLA from a value investing lense as a way to compare and contrast: Tesla is currently leading the market when it comes to electric cars and self driving cars. However, Cruise (GM's baby) filed with the CA DMW two weeks ago to have commercial fully self driving cars on the road in the near future. It looks like in the coming years GM will take a large chunk out of Tesla's self driving technology. However, unlike Yahoo to Google, do you really want to buy a GM car? Will GM steal customers from Tesla? GM's rapport is ruined. Their cars go 80,000 to 120,000 thousand miles, fall apart, are a maintenance burden, are not amazing in any way, and let us not forget: They filed for bankruptcy only 10 years (or so) ago, and haven't exactly improved since then. So, yes they may be able to take some market share from Tesla, but until Toyota, BMW, or similar gets fully autonomous self driving tech, I imagine Tesla is still going to be the most desirable car on the road, which will keep its stock strong.