Dr Rck
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How many CEOs said that? Many also said be prepared for a downturn or soft landing if not hard. Most IT stocks lift but others are getting by or sales miss. Govt jobs, and hospitality sectors are hiring while even IT firms are firing! Military businesses at its peak yet, and recent market turbulence are traders living in rate cut la-la land, according to David Zervos, so what does it mean? It is crazy :) no more fundamentals, still too much money chasing after so many stocks, no wonder inflation persists!
Profits Are Booming - and That's Shielding the Economy
So that means-and probably that's why the Fed can afford to delay cutting interest rate till further in the year until the inflation is tamed or as they are convinced! But it doesn't explain most sectors boom but mostly IT stocks especially those that are already in much developments and orders are placed-AI for instance. But not all are enjoying such good breaks or sustaining profits, again TSLA as an example, it will take a longer more to see higher profit margin, bigger revenue and better sales than its competitors!
Profits Are Booming - and That's Shielding the Economy
Trouble brewing for TSLA as much as we don't want that to happen! That will create a stall in its FSD in China nonetheless or much more stringent testing before final approval from the Chinese authorities!
Tesla Falls 3% After Report US Autopilot Probe to Focus on Securities, Wire Fraud
All cars sales are falling across the board whether they are EV, hybrid or otherwise! This proves to be challenging even for TSLA at the level they re in right now to emerge stronger than the rest since it is already experiencing dwindling sales. And the Fed may not cut interest rate too soon, but wait out till inflation rate stabilises! April records dropping sales -2% in China, so definitely it will be a while before improvements can be seen. So what will happen during this period before the next Fed meeting in June?
Toyota Forecasts 20% Full-Year Profit Decline After Blockbuster Q4
Next in line, TSLA may announce a corporate buyback of shares dollowing the success of robotaxi in the likes of Apple and Google. The testing of robotaxi is speeding up the trial of adopting it in a way faster than the market can anticipate and also something EM can proudly broadcast when it is ready to launch come Aug and with the cut kicks in, plus the model 2 update, I am sure this will propel TSLA further by then!
Tesla Plans to Test Its "Robotaxi" in China, Sources Say
oh my all are down!! Time for the Fed to act or is it the right time to do anything about the interest rate cuts or stay put? They might want to see that the inflation rate stabilizes which means will hold on longer so what will then happen to EV sales?
China EV Insurance Registrations for Week Ending May 5: Nio 3,600, Tesla 11,000, BYD 52,600, Xiaomi 1,300
So Warren has indicated again his company won't invest in TSLA and that's an alarm bell ringing! Must be its P/E in mulitiples doesn't impress him that much although he mentioned FSD can cause less accidents if it is fully functional but the question is when while R&D requires huge investment, time and testing to realise its potential, so that means TSLA needs money for it to happen as it is burning millions if not billions monthly! Wait for the right interest rate environment and more testing results coming from FSD and China's collaboration!
Pretty range bound for TSLA, alL waiting to ehear Fed to announce rate cut 'soon' but what if Fed delays to a later time until the inflation rate is achieved lower? It seems to indicate that the Fed is comfortable with unemployment inching higher with inflation going up as well by not doing anything to the rate cut so soon. What then will happen to stocks? They have to drop further so that the inflation target can be achieved. Do you think the cut will be anytime soon? Will find out more in the coming weeks! Meanwhile, hold on the rail!
Tesla Stock Falls 2.9%. Lucid's Results Are Another Example of Slowing EV Demand
Long term buy, yes of course, as you said it may retract to $165 before the next buy. What is happening is that its stock continues to trend toward $190 or may cross $200 is a bit ridiculous despite the steep drop in revenue lately. But what's ridiculous for some is a buy for others :)!
Apple: Those Who Harp On iPhone Sales Miss The Point
$Apple(AAPL)$ Not at the moment, its revenue stalls and will wait for later in the year to see improvements
Warren has indicated not at the moment due to one of his three key components which is too high a P/E ratio valuation, which of course, is pretty risky to look into amid all other initiatives TSLA has but only fans of EM buy.
Agree with his one key component and that is not investing in a stock that has too high a P/E ratio, as being too risky because fundamentally it didn't sound right, but long term wise TSLA may grow to its full potential assuming his FSD, Optimus and other of his initiatives do take profits but not many investors are convinced that the time is not now.
Sorry, Elon: Warren Buffett Won't Be Buying Tesla Stock
Usually it is signal by Warren before putting in his investment and also telling Musk if he can prove to reduce accidents (according to Musk, FSD can handle a car much more efficiently and effectively than a man does) then I think the next money poured into would be from Warren's firm! Humanoid and robotaxi would be the next top line for TSLA in the long run!
Elon Musk Calls on Warren Buffett to Take a Stake in Tesla
Looking at the optimistic outlook, 75% of all stocks will rise whether the reports are looking good or otherwise because betting that the rate cut is imminent. No one would want to sell and hope the stock market will be much buoyant when the Fed cuts rate!!
So employment gained last reported was terribly low while inflation rate lingered, that means Fed may cut rate soon but how soon? And will it even bring higher cost for employers to hire after the rate cut? If so, inflation will continue to rise much higher .. and what will happen to stock market then? It is already climbing at ridiculous rate as you can see even when Apple sales is down amid rising unemployment, so it is a matter of time things come crashing down.. wow.. for those with money they can hold onto the stock at that high but sudden selling pressure will definitely be something to look out for..
$Apple(AAPL)$ If it hits $190, wouldn't that be considered as immense inflation or overblown value since sales has dropped from previous revenue? what is the market trying to 'trick' investors into? :)
$Apple(AAPL)$ A drop is a drop! Drop in sales by 10% is a lot even if it is slightly higher than expected! Just one last sweet dividends for investors before further drop and restoring confidence by having a buyback will stabilise Apple from further fall - until the Fed steps in! The market is slightly warp...
With inflation still at a high, do you think the Fed will cut rate so soon? Maybe not so soon, but in June. So not true that sell may and go away! Yeah...
U.S. Job Growth Totaled 175,000 in April, Much Less Than Expected
Why it means it then opens higher by 400 then 3xx, it means it is dropping if you read it the other way!
Dow Opens 500 Points Higher as Weak Jobs Report Raises Fed Rate Cut Hopes
Brace for an impact that is coming soon! What goes up must come down. For a little while.
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