News Formal

Business Maverick: Tesla’s week to forget was anchor weighing on S&P 500

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 28 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 84%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

For all the stock market gyrations last week, one company’s performance stands out beyond all others: Tesla.

For ardent Tesla fans like ARK Investment Management’s Cathie Wood, the selloff offers a chance to buy more of the stock at its cheapest price in months. The growth-stock guru, whose funds have been hit hard this year amid soaring inflation and rising interest rates, snapped up shares worth about $32-million on Monday. Mom-and-pop traders were also big buyers, with nearly $540-million in net purchases over the past five trading days, Vanda Research said.

Musk’s purchase of Twitter adds a few more wrinkles. In addition to the uncertainty around the deal’s financing, investors are also worried that the billionaire could be pushing himself beyond his limits with so many demanding ventures. Meanwhile, even with this selloff, Tesla continues to tower over Big Tech and most of the S&P 500 with its eye-watering valuation. Tesla shares are trading at 40 times the company’s estimated forward earnings. By comparison, the S&P 500 trades at an average of 15 times, and Apple trades at 23 times.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tesla’s week to forget was worst since 2020 market crashThe EV-maker’s issues are no secret. It has been battered by the one-two punch of disappointing quarterly deliveries and Chief Executive Officer Elon Musk’s surprise decision to revive his offer to buy social media platform Twitter.
Source: mybroadband - 🏆 11. / 67 Read more »

Business Maverick: Stocks slump as rate-hike outlook damps sentiment: markets wrapShares opened the week lower amid intensifying concern over the impact of tightening monetary policy after strong labour market data reinforced expectations for more aggressive interest rate hikes from the Federal Reserve. Why not let the business cycle run it's course. If the Government stopped borrowing more and printing more, then there would not be inflation.
Source: dailymaverick - 🏆 3. / 84 Read more »