5 ms·
Doesn't their stock valuation count on basically every year being better than the last for a long time to come?
by seoaeu 5y ago
Doesn't their stock valuation count on basically every year being better than the last for a long time to come?
- toomuchtodo 5y agoYes, and as long as enough investors believe in that thesis, it'll stay where its at. What's Uber's stock price and valuation after burning $30 billion dollars and still not turning a profit? (Uber picked in particular because I'm familiar with their financials)
- sidcool 5y agoHasn't Tesla now been consistently posting profits?
- deleted 5y ago[deleted]
- SuoDuanDao 5y agoYes, but if their profits stayed consistent at current rates the stock price would be quite high compared to other companies. It's price-to-earnings ratio is 408, meaning it would take 408 years for it to buy all its outstanding stock just from earnings. By contrast Ford's is 16 and Alphabet's (Google's) is 29. The 408 ratio is justified by the assumption that earnings will be a lot higher in coming decades.
- randmeerkat 5y agoSince you’re familiar with Uber’s financials, I have a question. Do you think they’ll be able to survive as a company once interest rates begin rising?
- toomuchtodo 5y agoNot a financial advisor, not financial advice, this is merely a thought experiment. Uber will survive as long as there are investors willing to believe they might be profitable, eventually. Once the consensus or shared belief turns, I believe they’ll face significant challenges raising capital in the market.
- buzzwords 5y agoStock prices are not always rational. I'm not sure why. But one of the contributing factor could be things like ETFs where stocks were bought to track a particular sector or index regardless of their financials. (I'm just guessing, I don't have a financial background)
- mhh__ 5y agoAlso Because Tesla is a meme stock? Not just a ha ha meme, but a meme similar to how Dawkins described. I'd like a figure for the split of retail and organized money in Tesla.
- mewpmewp2 5y agoBut isn't there just a little bit of truth behind each meme? I mean, all I'm saying is, that there's a reason Tesla is a meme stock.
- fullshark 5y agoTheir stock valuation counts on them taking 60%+ of the global car market, and their cars being a computer network that generates new revenue from software improvements in perpetuity.
- verdverm 5y agoI have some doubt cars will be their primary source of revenue in the long run. They are also an energy company and soon to be insurance. I also don't think Tesla bot is a joke, Elon seems pretty serious about outdoing other companies for household robots (re: his comments at #codecon)