Tesla Is Gaining Apple Status And Hedge Fund Managers Are Paid To Worry
Elon Musk’s net worth increased by about $400 million in 5 minutes. The next day he video chatted with Richard Branson and sat in a very “regal” chair. Tesla’s stock price is now almost up 400% this year. On StockTwits, Tesla is gaining an aura that some are calling, “Apple status.” This would have been completely unthinkable last year:
There was a great discussion focused on the value of Tesla. We found that the market cap of Tesla is almost half that of General Motors ($GM). Yet Tesla has quarterly revenue of only $500 million while GM has quarterly revenue of $40 billion. The discussion started with this statistic:
While Tesla was up roughly 10% this week the markets were down about 1%. Hedge fund and money managers were making headlines too. Ray Dalio sent out a note explaining why he’s worried about Europe. He called it a perfect storm:
“We are paid to worry. By keeping our eyes out for possible “perfect storms” brewing on the horizon and identifying cheap ways of protecting ourselves when others are not paying attention to them we have been able to reduce portfolio risks and raise returns. Of course, like all perfect storms far on the horizon, it is difficult to know for sure that a confluence of events will occur. However, by finding them early and by watching them closely we can usually better assess their probability of materializing than the market does, which allows us to bet on protection when it is relatively cheap.”
On StockTwits the discussion wasn’t entirely centered on Europe or economic confidence. Instead it was mostly focused on breadth. Some of the best made sure to point this out including @andrewthrasher, @kimblecharting, and @markarbeterSPCIQ:
Although breadth continues to be a worry there is still optimism in the air. We were not surprised when a widely circulated Goldman Sachs report hit the StockTwits streams. The title was ‘Eight Disruptive Themes’ and the key was R&D. The full list includes E-cigarettes, Cancer Immunotherapy, LED Lighting, Alternative Capital, Natural Gas Engines, Software Defined Networks, Big Data, and 3D Printing:
What else is going on:
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