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Growth Stocks are not priced based on current profits, but future growth and profits. When I bought GOOG in 2005, the consensus was that GOOG was overpriced bec
by bob33212 5y ago
Growth Stocks are not priced based on current profits, but future growth and profits. When I bought GOOG in 2005, the consensus was that GOOG was overpriced because they didn't have a lot of revenue. When I bought TSLA in 2014 the consensus was that another automaker would beat them or buy them before they were very profitable. In 2024 when TSLA is at $1500 and people are saying that it is overpriced because it only makes 5 million cars a year, I'll still be explaining this same principal.
- andrewmcwatters 5y agoMaybe you missed it, that’s fair value at future cash flows at about an 8% discount rate.
- bob33212 5y agoWhat margins and volumes on the Y, CyberTruck, and Model A, FSD subscriptions are you using in that calculation for 2025?
- rualca 5y ago> In 2024 when TSLA is at $1500 (...) Since the start of 2021,Tesla tanked from $880 to around $660.
- MR4D 5y agoBut the marginal cost of an additional dollar of revenue for Google was close to zero - for Tesla it’s much higher. Google’s lead grew as it grew (Metcalf’s law). Tesla’s won’t for the same reason that everyone doesn’t want to drive the same car (a the Model T issue). [0] So we have seen this story before, but some people are attached to different points of it. [0] - http://www.autolife.umd.umich.edu/Design/Gartman/D_Casestudy/D_Casestudy3.htm http://www.autolife.umd.umich.edu/Design/Gartman/D_Casestudy...