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Tonykhoo
04-30
Well fargo cannot be trusted
Tesla's Big Rally on China Developments Is Called Overdone by Wells Fargo
Tonykhoo
03-14
Holding on to 13.5k since $15
Sorry, the original content has been removed
Tonykhoo
2023-11-23
Sore loser
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Tonykhoo
2023-07-20
The author does not have any credibility
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Go to Tiger App to see more news
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However, there're no details of the partnership in terms of economics & data sharing. Also, TSLA's FSD system is vision-only with decisions that are not dependent on mapping, so Baidu's role in the FSD tech is unclear."</p><p>Langan also warned that there could be restrictions on sharing data, which could limit Tesla's (TSLA) ability to leverage the tech progress it has seen in the U.S.</p><p>There is also the glaring point that Chinese electric vehicle makers are fast followers and could undercut Tesla (TSLA) on pricing. Advanced driver-assistance systems are already going mainstream in China, with XPeng (XPEV) and Xiaomi (OTCPK:XIACF) two of the notable players. Li Auto (LI) and BYD Company (OTCPK:BYDDF) also have advanced driver-assistance systems plans of their own.</p><p>Morgan Stanley went in a different direction with the Tesla (TSLA) developments. Notably, analyst Adam Jonas said investor concerns about the focus of Elon Musk on Tesla (TSLA) could be alleviated after the China trip. Jonas said achieving a potential détente with the Chinese government on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla's Big Rally on China Developments Is Called Overdone by Wells Fargo</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla's Big Rally on China Developments Is Called Overdone by Wells Fargo\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-30 16:22 GMT+8 <a href=https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).Wells ...</p>\n\n<a href=\"https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"89888":"百度集团-SWR","BK1587":"次新股","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4552":"Archegos爆仓风波概念","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","BK4207":"综合性银行","BK4551":"寇图资本持仓","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","LI":"理想汽车","09888":"百度集团-SW","LU0823411888.USD":"法巴消费创新基金 Cap","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","BYDDF":"BYD Co., Ltd.","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU0348735423.USD":"ALLIANZ HONG KONG EQUITY \"A\" (USD) INC","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0856984785.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"ACH\" (SGDHDG) ACC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","SG9999014674.SGD":"Nikko AM All China Equity A SGD","TSLA":"特斯拉","LU1115378108.SGD":"Eastspring Investments - Global Emerging Markets Dynamic AS SGD","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0163747925.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY A ACC","XPEV":"小鹏汽车","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","BK4550":"红杉资本持仓","LU0823426308.USD":"法巴中国股票基金","LU0106831901.USD":"贝莱德世界金融基金A2","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU2039709279.SGD":"MANULIFE GF DRAGON GROWTH \"AA\" (SGDHDG) INC","BIDU":"百度","LU0287142896.SGD":"Fidelity China Focus A-SGD","BK4555":"新能源车","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","BK1588":"回港中概股","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU0043850808.USD":"HSBC GIF ASIA EX JAPAN EQUITY \"AD\" INC","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BK4559":"巴菲特持仓","XIACF":"Xiaomi Corp.","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H"},"source_url":"https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2431848642","content_text":"Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).Wells Fargo analyst Colin Langan said he was surprised by the big share price move on Monday, given the firm sees limited EPS impact and with deal details far from certain.\"The partnership with Baidu helped ease China regulators' concerns over data security. However, there're no details of the partnership in terms of economics & data sharing. Also, TSLA's FSD system is vision-only with decisions that are not dependent on mapping, so Baidu's role in the FSD tech is unclear.\"Langan also warned that there could be restrictions on sharing data, which could limit Tesla's (TSLA) ability to leverage the tech progress it has seen in the U.S.There is also the glaring point that Chinese electric vehicle makers are fast followers and could undercut Tesla (TSLA) on pricing. Advanced driver-assistance systems are already going mainstream in China, with XPeng (XPEV) and Xiaomi (OTCPK:XIACF) two of the notable players. Li Auto (LI) and BYD Company (OTCPK:BYDDF) also have advanced driver-assistance systems plans of their own.Morgan Stanley went in a different direction with the Tesla (TSLA) developments. Notably, analyst Adam Jonas said investor concerns about the focus of Elon Musk on Tesla (TSLA) could be alleviated after the China trip. Jonas said achieving a potential détente with the Chinese government on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding.","news_type":1},"isVote":1,"tweetType":1,"viewCount":43,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":284192333799704,"gmtCreate":1710398902822,"gmtModify":1710399219829,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Holding on to 13.5k since $15","listText":"Holding on to 13.5k since $15","text":"Holding on to 13.5k since $15","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/284192333799704","repostId":"2419163746","repostType":2,"isVote":1,"tweetType":1,"viewCount":14,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":244364819083280,"gmtCreate":1700683400830,"gmtModify":1700684097440,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Sore loser ","listText":"Sore loser ","text":"Sore loser","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/244364819083280","repostId":"2385857498","repostType":2,"isVote":1,"tweetType":1,"viewCount":108,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":199829394473000,"gmtCreate":1689828056518,"gmtModify":1689829620561,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"The author does not have any credibility","listText":"The author does not have any credibility","text":"The author does not have any credibility","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/199829394473000","repostId":"2352050694","repostType":2,"isVote":1,"tweetType":1,"viewCount":176,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":244364819083280,"gmtCreate":1700683400830,"gmtModify":1700684097440,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Sore loser ","listText":"Sore loser ","text":"Sore loser","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/244364819083280","repostId":"2385857498","repostType":2,"isVote":1,"tweetType":1,"viewCount":108,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":199829394473000,"gmtCreate":1689828056518,"gmtModify":1689829620561,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"The author does not have any credibility","listText":"The author does not have any credibility","text":"The author does not have any credibility","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/199829394473000","repostId":"2352050694","repostType":2,"repost":{"id":"2352050694","pubTimestamp":1689824031,"share":"https://www.laohu8.com/m/news/2352050694?lang=&edition=full","pubTime":"2023-07-20 11:33","market":"us","language":"en","title":"Tesla: Consider Selling The News?","url":"https://stock-news.laohu8.com/highlight/detail?id=2352050694","media":"Seeking Alpha","summary":"Tesla: Consider Selling The News (NASDAQ:TSLA)","content":"<html><head></head><body><h2 id=\"id_3062389901\" style=\"text-align: left;\">Summary</h2><ul><li><p>Tesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.</p></li><li><p>Despite record deliveries and revenue growth, the company's gross margins dropped from 25% to 18% during Q2.</p></li><li><p>Tesla's energy business performed well, with storage deployment up 200% YoY, but this was not enough to offset falling gross margins in the automotive business.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f95882ca5c26944bd571917c1cf125e3\" alt=\"Justin Sullivan\" title=\"Justin Sullivan\" tg-width=\"750\" tg-height=\"515\"/><span>Justin Sullivan</span></p><h2 id=\"id_3430076673\" style=\"text-align: left;\">Article Thesis</h2><p style=\"text-align: left;\"><strong>Tesla, Inc.</strong> (NASDAQ:TSLA) reported its second quarter earnings results on Wednesday afternoon. While the company beat estimates on both lines, margin compression continued and free cash flows were pretty weak. Due to a very high valuation, I believe that selling shares in order to lock in gains makes sense.</p><h2 id=\"id_2832312125\" style=\"text-align: left;\">What Happened?</h2><p style=\"text-align: left;\">On Wednesday afternoon, Tesla, Inc. reported its second-quarter earnings results, which can be seen here. The headline numbers looked like this:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dda02d5a34ba894a1df155753aaded78\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"263\"/><span>Seeking Alpha</span></p><p style=\"text-align: left;\">The electric vehicle ("EV") player beat estimates on both lines, which naturally was a positive surprise. Record deliveries had been announced in early July already, thus this was not a surprise any longer. The company's revenue growth rate was very attractive, but that was, at least partially, due to the easy comparison to the weak results from the previous year's second quarter. On a quarter-to-quarter basis, revenues were up around 7% -- which is still very meaningful, but which annualizes to around 30%. This implies that Tesla will experience a significant growth slowdown once the comparison to the previous year's quarters becomes tougher again. Or, seen differently, growth is slowing down -- although it is still well north of the growth that legacy auto players are experiencing.</p><h2 id=\"id_2980243369\" style=\"text-align: left;\">Margins Continue To Compress, Free Cash Generation Is Weak</h2><p style=\"text-align: left;\">When we look beyond the headline numbers, there were a couple of things in Tesla's report that did not look great at all. Let's start with Tesla's margins, which continued to compress. Tesla bulls have, in the past, argued that the company had massive competitive advantages due to its high margins and that this would warrant a premium valuation versus other automobile companies. The high margins were, according to some Tesla bulls, the result of an excellent operational structure and highly advantaged production technologies. But it seems that these tailwinds have either vanished, or, alternatively, they never existed in the first place, and Tesla was just benefitting from a demand overhang in the EV space.</p><p style=\"text-align: left;\">Over the last couple of quarters, Tesla's margins have only been moving in one direction -- downward:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a934ba79e0c6fe76f504c963143ac488\" alt=\"Tesla presentation\" title=\"Tesla presentation\" tg-width=\"640\" tg-height=\"166\"/><span>Tesla presentation</span></p><p style=\"text-align: left;\">We see that gross margins have dropped from an impressive 25% to just 18% during the second quarter, which implies a hefty 700 base point margin hit. Even worse, margins continued to decline on a sequential basis, which implies that further margin contraction is possible -- we have not passed the nadir yet. While operating margins declined by a little less in absolute terms, dropping 500 base points over the last year, the operating margin decline, in relative terms, was extraordinary, as Tesla's operating margin dropped by 34%. This means that Tesla now has to generate revenues that are 52% higher than one year ago in order to generate the same amount of operating profit [1/0.66]. This, in turn, explains why Tesla's operating profits are <em>down</em> year over year, despite the substantial increase in the company's revenues and deliveries over the last year.</p><p style=\"text-align: left;\">While the year-over-year decline has not been very high during the second quarter, it looks like we could see more substantial profit declines during the second half of this year. H2 of 2022 was better profit-wise compared to the first half of 2022, which means that the comparison will become harder for Tesla in H2 of 2023. Since Tesla has experienced a profit decline during the second quarter despite a relatively easy comparison, a more substantial profit decline during Q3 and/or Q4 would not be surprising, I believe.</p><p style=\"text-align: left;\">Operating income did also fall versus the first quarter, despite higher deliveries. To me, this suggests that Tesla's strategy of lowering the price of its vehicles in order to sell more vehicles is not generating any value for shareholders -- deliveries climb, but when profits are declining, that's not really helping anyone (at least not investors, which should care about profit).</p><p style=\"text-align: left;\">Tesla has a very clean balance sheet, but the cash flow picture is far from good. Despite profits being much higher, the company generated just $1 billion of free cash flow during the second quarter, and around $1.4 billion during the first half -- that's a little less than $3 billion annualized, which is far from appealing, considering Tesla is valued at well north of $900 billion. If H2 is comparable to the first half of the current year, Tesla trades at a 300x free cash flow multiple, which is, I believe, incredibly expensive. In other words, for every $1 investors put into Tesla stock, they have a claim on one-third of a cent of free cash flow. Considering that $1 dollar put into short-term treasuries generates around $0.05 per month in interest, the cash flow yield of Tesla stock is pretty weak (and this does not yet factor in that Tesla doesn't even pay out any of the free cash flow it generates).</p><p style=\"text-align: left;\">There were also some positives in Tesla's report, of course. While solar deployment was very weak (down 40% year over year), the other, more important, part of Tesla's energy business performed well. The company deployed 3.7 GWh of storage, which was up more than 200% year over year -- which is a very strong growth rate for sure. While the energy business showed a much weaker revenue growth rate of 74%, that was still strong in absolute terms. The energy business is profitable on a gross cost basis, before factoring in operating expenses, as the gross margin of this unit was 18% during the second quarter. This represents an improvement versus the previous quarter, during which Tesla Energy's gross margin was 11%.</p><p style=\"text-align: left;\">Unfortunately, the gross margin improvement in the energy business is not sizeable enough to offset the headwinds from falling gross margins in the automotive business, which is why the company-wide gross margin dropped, as shown earlier. Still, if Tesla is able to ramp up the energy business at a compelling pace in the coming quarters while also growing the gross margin over time, this should have a positive impact on Tesla's company-wide financial results.</p><p style=\"text-align: left;\">While the energy business is small for now (around 7% of Tesla's automobile revenues), it's a fast-growing unit with long-term potential, although there are also some uncertainties -- we don't know yet how large this market will ultimately become, and which company will win out.</p><h2 id=\"id_576248438\" style=\"text-align: left;\">Do New Models Justify This Valuation?</h2><p style=\"text-align: left;\">Tesla has gotten a lot of attention in the recent past due to speculation about a $25,000 model that could be manufactured in Mexico, while Tesla also has manufactured the first Cybertruck this summer. How impactful these models will become is up for debate. It is pretty clear that a $25,000 model has a substantial addressable market, as not too many people can (or want to) buy an EV for a much higher price. This holds especially true in emerging markets.</p><p style=\"text-align: left;\">But on the other hand, there is not a lot of charging infrastructure in some emerging markets, and a $25,000 price may still be too high for many consumers around the world. It is also highly likely that selling a vehicle for a price of $25,000 would not help boost Tesla's margins -- in general, higher-end vehicles have higher margins than lower-end vehicles. This explains why some of Tesla's competitors, such as Mercedes-Benz Group (OTCPK:MBGYY), are getting rid of some of their lower-end models in order to focus on higher-end models, as this is where these companies are generating much higher margins. Mercedes, which has been moving in the opposite direction of Tesla when it comes to focusing on profit instead of volume, has higher gross margins than Tesla.</p><p style=\"text-align: left;\">Tesla could presumably sell a very substantial number of vehicles at $25,000 per car. However, it is far from guaranteed that this would boost Tesla's profits -- after all, we have seen earlier that volume growth does not translate into earnings growth, and may even go hand in hand with a profit decline (see the Q2 numbers).</p><p style=\"text-align: left;\">The Cybertruck will be sold at a substantially higher price and should generate higher margins. But we still don't know yet how profitable this vehicle will be for Tesla, as the manufacturing process is rather different from Tesla's other vehicles, and since there are many consumers that don't like the Cybertruck's unconventional design.</p><p style=\"text-align: left;\">Looking at Wall Street estimates, the profit outlook isn't great for Tesla:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7d18b2536dfbdec909ab065307fcb315\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"112\"/><span>Seeking Alpha</span></p><p style=\"text-align: left;\">There were barely any EPS upward revisions over the last quarter, while many analysts have lowered their estimates due to the margin pressure Tesla is experiencing. Not even the company's revenue estimates are moving in the right direction. Earnings per share are forecasted to decline by double digits this year, and while Tesla profits are forecasted to improve in 2024 and beyond, Tesla still looks quite expensive even when we look at profit estimates for the coming years. Tesla trades at 46x 2026's earnings per share estimate, for example -- that's three years from now, and still, the earnings yield is just 2%.</p><h2 id=\"id_3530739842\" style=\"text-align: left;\">Final Thoughts</h2><p style=\"text-align: left;\">Tesla beat headline estimates, but the underlying margin picture isn't pretty. Free cash generation remains rather weak as well, especially compared to the very high market capitalization. Tesla has rallied massively year-to-date (congrats to those that bought at the lows), but I believe it is not a good investment at current prices. Locking in gains today could make sense, which is why I rate Tesla a sell today -- a 300x free cash flow multiple for an automobile company with declining margins and declining profits is just too expensive.</p><p style=\"text-align: left;\">Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla: Consider Selling The News?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla: Consider Selling The News?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-20 11:33 GMT+8 <a href=https://seekingalpha.com/article/4618210-tesla-sell-the-news><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryTesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.Despite...</p>\n\n<a href=\"https://seekingalpha.com/article/4618210-tesla-sell-the-news\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU0053666078.USD":"摩根大通基金-美国股票A(离岸)美元","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU0823411888.USD":"法巴消费创新基金 Cap","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0082616367.USD":"摩根大通美国科技A(dist)","LU0056508442.USD":"贝莱德世界科技基金A2","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","TSLA":"特斯拉","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK4555":"新能源车","BK4533":"AQR资本管理(全球第二大对冲基金)","LU2063271972.USD":"富兰克林创新领域基金","LU0823414478.USD":"法巴经典能源转换基金","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4527":"明星科技股","LU0097036916.USD":"贝莱德美国增长A2 USD","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","BK4588":"碎股","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","BK4550":"红杉资本持仓","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4574":"无人驾驶","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU1548497426.USD":"安联环球人工智能AT Acc","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","BK4551":"寇图资本持仓","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4581":"高盛持仓","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","BK4511":"特斯拉概念","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4548":"巴美列捷福持仓"},"source_url":"https://seekingalpha.com/article/4618210-tesla-sell-the-news","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2352050694","content_text":"SummaryTesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.Despite record deliveries and revenue growth, the company's gross margins dropped from 25% to 18% during Q2.Tesla's energy business performed well, with storage deployment up 200% YoY, but this was not enough to offset falling gross margins in the automotive business.Justin SullivanArticle ThesisTesla, Inc. (NASDAQ:TSLA) reported its second quarter earnings results on Wednesday afternoon. While the company beat estimates on both lines, margin compression continued and free cash flows were pretty weak. Due to a very high valuation, I believe that selling shares in order to lock in gains makes sense.What Happened?On Wednesday afternoon, Tesla, Inc. reported its second-quarter earnings results, which can be seen here. The headline numbers looked like this:Seeking AlphaThe electric vehicle (\"EV\") player beat estimates on both lines, which naturally was a positive surprise. Record deliveries had been announced in early July already, thus this was not a surprise any longer. The company's revenue growth rate was very attractive, but that was, at least partially, due to the easy comparison to the weak results from the previous year's second quarter. On a quarter-to-quarter basis, revenues were up around 7% -- which is still very meaningful, but which annualizes to around 30%. This implies that Tesla will experience a significant growth slowdown once the comparison to the previous year's quarters becomes tougher again. Or, seen differently, growth is slowing down -- although it is still well north of the growth that legacy auto players are experiencing.Margins Continue To Compress, Free Cash Generation Is WeakWhen we look beyond the headline numbers, there were a couple of things in Tesla's report that did not look great at all. Let's start with Tesla's margins, which continued to compress. Tesla bulls have, in the past, argued that the company had massive competitive advantages due to its high margins and that this would warrant a premium valuation versus other automobile companies. The high margins were, according to some Tesla bulls, the result of an excellent operational structure and highly advantaged production technologies. But it seems that these tailwinds have either vanished, or, alternatively, they never existed in the first place, and Tesla was just benefitting from a demand overhang in the EV space.Over the last couple of quarters, Tesla's margins have only been moving in one direction -- downward:Tesla presentationWe see that gross margins have dropped from an impressive 25% to just 18% during the second quarter, which implies a hefty 700 base point margin hit. Even worse, margins continued to decline on a sequential basis, which implies that further margin contraction is possible -- we have not passed the nadir yet. While operating margins declined by a little less in absolute terms, dropping 500 base points over the last year, the operating margin decline, in relative terms, was extraordinary, as Tesla's operating margin dropped by 34%. This means that Tesla now has to generate revenues that are 52% higher than one year ago in order to generate the same amount of operating profit [1/0.66]. This, in turn, explains why Tesla's operating profits are down year over year, despite the substantial increase in the company's revenues and deliveries over the last year.While the year-over-year decline has not been very high during the second quarter, it looks like we could see more substantial profit declines during the second half of this year. H2 of 2022 was better profit-wise compared to the first half of 2022, which means that the comparison will become harder for Tesla in H2 of 2023. Since Tesla has experienced a profit decline during the second quarter despite a relatively easy comparison, a more substantial profit decline during Q3 and/or Q4 would not be surprising, I believe.Operating income did also fall versus the first quarter, despite higher deliveries. To me, this suggests that Tesla's strategy of lowering the price of its vehicles in order to sell more vehicles is not generating any value for shareholders -- deliveries climb, but when profits are declining, that's not really helping anyone (at least not investors, which should care about profit).Tesla has a very clean balance sheet, but the cash flow picture is far from good. Despite profits being much higher, the company generated just $1 billion of free cash flow during the second quarter, and around $1.4 billion during the first half -- that's a little less than $3 billion annualized, which is far from appealing, considering Tesla is valued at well north of $900 billion. If H2 is comparable to the first half of the current year, Tesla trades at a 300x free cash flow multiple, which is, I believe, incredibly expensive. In other words, for every $1 investors put into Tesla stock, they have a claim on one-third of a cent of free cash flow. Considering that $1 dollar put into short-term treasuries generates around $0.05 per month in interest, the cash flow yield of Tesla stock is pretty weak (and this does not yet factor in that Tesla doesn't even pay out any of the free cash flow it generates).There were also some positives in Tesla's report, of course. While solar deployment was very weak (down 40% year over year), the other, more important, part of Tesla's energy business performed well. The company deployed 3.7 GWh of storage, which was up more than 200% year over year -- which is a very strong growth rate for sure. While the energy business showed a much weaker revenue growth rate of 74%, that was still strong in absolute terms. The energy business is profitable on a gross cost basis, before factoring in operating expenses, as the gross margin of this unit was 18% during the second quarter. This represents an improvement versus the previous quarter, during which Tesla Energy's gross margin was 11%.Unfortunately, the gross margin improvement in the energy business is not sizeable enough to offset the headwinds from falling gross margins in the automotive business, which is why the company-wide gross margin dropped, as shown earlier. Still, if Tesla is able to ramp up the energy business at a compelling pace in the coming quarters while also growing the gross margin over time, this should have a positive impact on Tesla's company-wide financial results.While the energy business is small for now (around 7% of Tesla's automobile revenues), it's a fast-growing unit with long-term potential, although there are also some uncertainties -- we don't know yet how large this market will ultimately become, and which company will win out.Do New Models Justify This Valuation?Tesla has gotten a lot of attention in the recent past due to speculation about a $25,000 model that could be manufactured in Mexico, while Tesla also has manufactured the first Cybertruck this summer. How impactful these models will become is up for debate. It is pretty clear that a $25,000 model has a substantial addressable market, as not too many people can (or want to) buy an EV for a much higher price. This holds especially true in emerging markets.But on the other hand, there is not a lot of charging infrastructure in some emerging markets, and a $25,000 price may still be too high for many consumers around the world. It is also highly likely that selling a vehicle for a price of $25,000 would not help boost Tesla's margins -- in general, higher-end vehicles have higher margins than lower-end vehicles. This explains why some of Tesla's competitors, such as Mercedes-Benz Group (OTCPK:MBGYY), are getting rid of some of their lower-end models in order to focus on higher-end models, as this is where these companies are generating much higher margins. Mercedes, which has been moving in the opposite direction of Tesla when it comes to focusing on profit instead of volume, has higher gross margins than Tesla.Tesla could presumably sell a very substantial number of vehicles at $25,000 per car. However, it is far from guaranteed that this would boost Tesla's profits -- after all, we have seen earlier that volume growth does not translate into earnings growth, and may even go hand in hand with a profit decline (see the Q2 numbers).The Cybertruck will be sold at a substantially higher price and should generate higher margins. But we still don't know yet how profitable this vehicle will be for Tesla, as the manufacturing process is rather different from Tesla's other vehicles, and since there are many consumers that don't like the Cybertruck's unconventional design.Looking at Wall Street estimates, the profit outlook isn't great for Tesla:Seeking AlphaThere were barely any EPS upward revisions over the last quarter, while many analysts have lowered their estimates due to the margin pressure Tesla is experiencing. Not even the company's revenue estimates are moving in the right direction. Earnings per share are forecasted to decline by double digits this year, and while Tesla profits are forecasted to improve in 2024 and beyond, Tesla still looks quite expensive even when we look at profit estimates for the coming years. Tesla trades at 46x 2026's earnings per share estimate, for example -- that's three years from now, and still, the earnings yield is just 2%.Final ThoughtsTesla beat headline estimates, but the underlying margin picture isn't pretty. Free cash generation remains rather weak as well, especially compared to the very high market capitalization. Tesla has rallied massively year-to-date (congrats to those that bought at the lows), but I believe it is not a good investment at current prices. Locking in gains today could make sense, which is why I rate Tesla a sell today -- a 300x free cash flow multiple for an automobile company with declining margins and declining profits is just too expensive.Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":176,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":300860266229792,"gmtCreate":1714468235009,"gmtModify":1714468395403,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Well fargo cannot be trusted ","listText":"Well fargo cannot be trusted ","text":"Well fargo cannot be trusted","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/300860266229792","repostId":"2431848642","repostType":2,"repost":{"id":"2431848642","pubTimestamp":1714465356,"share":"https://www.laohu8.com/m/news/2431848642?lang=&edition=full","pubTime":"2024-04-30 16:22","market":"hk","language":"en","title":"Tesla's Big Rally on China Developments Is Called Overdone by Wells Fargo","url":"https://stock-news.laohu8.com/highlight/detail?id=2431848642","media":"seekingalpha","summary":"Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up as much as 18% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BID","content":"<html><head></head><body><p>Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).</p><p>Wells Fargo analyst Colin Langan said he was surprised by the big share price move on Monday, given the firm sees limited EPS impact and with deal details far from certain.</p><p>"The partnership with Baidu helped ease China regulators' concerns over data security. However, there're no details of the partnership in terms of economics & data sharing. Also, TSLA's FSD system is vision-only with decisions that are not dependent on mapping, so Baidu's role in the FSD tech is unclear."</p><p>Langan also warned that there could be restrictions on sharing data, which could limit Tesla's (TSLA) ability to leverage the tech progress it has seen in the U.S.</p><p>There is also the glaring point that Chinese electric vehicle makers are fast followers and could undercut Tesla (TSLA) on pricing. Advanced driver-assistance systems are already going mainstream in China, with XPeng (XPEV) and Xiaomi (OTCPK:XIACF) two of the notable players. Li Auto (LI) and BYD Company (OTCPK:BYDDF) also have advanced driver-assistance systems plans of their own.</p><p>Morgan Stanley went in a different direction with the Tesla (TSLA) developments. Notably, analyst Adam Jonas said investor concerns about the focus of Elon Musk on Tesla (TSLA) could be alleviated after the China trip. Jonas said achieving a potential détente with the Chinese government on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla's Big Rally on China Developments Is Called Overdone by Wells Fargo</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla's Big Rally on China Developments Is Called Overdone by Wells Fargo\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-30 16:22 GMT+8 <a href=https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).Wells ...</p>\n\n<a href=\"https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"89888":"百度集团-SWR","BK1587":"次新股","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4552":"Archegos爆仓风波概念","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","BK4207":"综合性银行","BK4551":"寇图资本持仓","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","LI":"理想汽车","09888":"百度集团-SW","LU0823411888.USD":"法巴消费创新基金 Cap","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","BYDDF":"BYD Co., Ltd.","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU0348735423.USD":"ALLIANZ HONG KONG EQUITY \"A\" (USD) INC","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0856984785.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"ACH\" (SGDHDG) ACC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","SG9999014674.SGD":"Nikko AM All China Equity A SGD","TSLA":"特斯拉","LU1115378108.SGD":"Eastspring Investments - Global Emerging Markets Dynamic AS SGD","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0163747925.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY A ACC","XPEV":"小鹏汽车","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","BK4550":"红杉资本持仓","LU0823426308.USD":"法巴中国股票基金","LU0106831901.USD":"贝莱德世界金融基金A2","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU2039709279.SGD":"MANULIFE GF DRAGON GROWTH \"AA\" (SGDHDG) INC","BIDU":"百度","LU0287142896.SGD":"Fidelity China Focus A-SGD","BK4555":"新能源车","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","BK1588":"回港中概股","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU0043850808.USD":"HSBC GIF ASIA EX JAPAN EQUITY \"AD\" INC","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BK4559":"巴菲特持仓","XIACF":"Xiaomi Corp.","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H"},"source_url":"https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2431848642","content_text":"Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).Wells Fargo analyst Colin Langan said he was surprised by the big share price move on Monday, given the firm sees limited EPS impact and with deal details far from certain.\"The partnership with Baidu helped ease China regulators' concerns over data security. However, there're no details of the partnership in terms of economics & data sharing. Also, TSLA's FSD system is vision-only with decisions that are not dependent on mapping, so Baidu's role in the FSD tech is unclear.\"Langan also warned that there could be restrictions on sharing data, which could limit Tesla's (TSLA) ability to leverage the tech progress it has seen in the U.S.There is also the glaring point that Chinese electric vehicle makers are fast followers and could undercut Tesla (TSLA) on pricing. Advanced driver-assistance systems are already going mainstream in China, with XPeng (XPEV) and Xiaomi (OTCPK:XIACF) two of the notable players. Li Auto (LI) and BYD Company (OTCPK:BYDDF) also have advanced driver-assistance systems plans of their own.Morgan Stanley went in a different direction with the Tesla (TSLA) developments. Notably, analyst Adam Jonas said investor concerns about the focus of Elon Musk on Tesla (TSLA) could be alleviated after the China trip. Jonas said achieving a potential détente with the Chinese government on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding.","news_type":1},"isVote":1,"tweetType":1,"viewCount":43,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":284192333799704,"gmtCreate":1710398902822,"gmtModify":1710399219829,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Holding on to 13.5k since $15","listText":"Holding on to 13.5k since $15","text":"Holding on to 13.5k since $15","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/284192333799704","repostId":"2419163746","repostType":2,"repost":{"id":"2419163746","pubTimestamp":1710396000,"share":"https://www.laohu8.com/m/news/2419163746?lang=&edition=full","pubTime":"2024-03-14 14:00","market":"us","language":"en","title":"Palantir: Why I Am Not Selling","url":"https://stock-news.laohu8.com/highlight/detail?id=2419163746","media":"Seeking Alpha","summary":"$Palantir Technologies Inc.(PLTR)$'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir exp","content":"<html><head></head><body><ul style=\"\"><li><p><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a>'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.</p></li><li><p>Palantir expects upward growth of at least 40% in the U.S. commercial segment for the year, highlighting strong revenue momentum.</p></li><li><p>Despite anticipating a market correction, the long-term outlook for Palantir Technologies remains positive, supported by solid fundamentals and aggressive growth strategies.</p></li><li><p>Following the strong bull run YTD, a pullback in Palantir Technologies is necessary before breaking into new highs.</p></li></ul><h2 id=\"id_3566456717\">Investment Thesis</h2><p>Since our in-depth analysis of <a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> in February 2022, when we first presented a bullish stance on the stock, the company has remarkably validated our conviction, richly rewarding patient investors.</p><p>Our confidence was well-placed; since doubling down on our position, PLTR has delivered a staggering return of over 230% in less than 17 months. This exceptional performance is underpinned by consecutive profitability milestones, robust growth metrics, impressive conversion rates, and the impactful deployment of AI capabilities, all contributing to a sustained bull run.</p><p>However, despite the significant gains, we anticipate a necessary pullback correction before PLTR reaches new heights. This expected correction should be viewed not as a deterrent, but as a potential opportunity for investors to enter or increase their positions in anticipation of further growth.</p><p>Therefore, our long-term investment thesis remains intact, underpinned by Palantir's solid fundamentals, strategic growth initiatives, and the broadening application of its AI technologies.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/044c0989cab46968f91e82f129c09235\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"439\"/><span>Data by YCharts</span></p><h2 id=\"id_420075811\">Powering Growth and Diversification in the Commercial Sector</h2><p>Artificial intelligence platforms (AIP) momentum drives new customer conversions and existing customer expansions. The transformative effect of AIP on the business is best highlighted in the U.S. commercial bookings and backlog. Palantir experienced noteworthy achievements in the U.S. commercial sector, the most significant being shorter times to conversion and expansion (from a prototype to a product in months).</p><p>By the 31st of December 2023, PLTR had 497 customers, with the commercial segment reporting high customer count growth of 14% quarter-over-quarter, while the government segment remained flat. The commercial segment experienced significant growth, with fourth-quarter revenue increasing by 32% year-over-year (YoY) and full-year revenue growing by 20%, <strong>exceeding $1 billion</strong> for the first time.</p><p>Additionally, the US Commercial revenue in Q4 surged by 70% YoY, reaching $131 million. With a revamped go-to-market strategy and piloting approach followed by significantly compressed sales cycles, the U.S. customer count grew by 55% YoY to 221, reflecting a robust market presence. This acceleration is attributed to a surge in demand, resulting in the highest commercial Total Contract Value (TCV) booked in a quarter, showcasing a 156% growth YoY. Hence, the strategic expansion and increased demand in the U.S. contributed majorly to this growth.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7e3f3d334334b2a0f85573e224db1d8a\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><p>Palantir's accelerated customer acquisition process stems from three key drivers. First, boot camps are rapidly transitioning into paying customers. In Palantir boot camps, participants and potential users <strong>learn how to apply AI</strong> to mission-critical operations within their organizations. They progress from having no prior knowledge to building practical use cases.</p><p>Once they feel empowered by Palantir's AI capabilities, the majority of them will convert into paying customers. Second, there's growth among existing customers and those with longstanding engagements with Palantir. Third, the introduction of AIP has further fueled this momentum. Despite these gains, Palantir recognizes that they have merely scratched the surface of their total addressable market, or TAM; they're only just getting started.</p><p>The firm also reported a meaningful increase in their US commercial TCV on a dollar-weighted duration basis, up 107% YoY and 42% sequentially. In the fourth quarter, TCV booked was 1.15 billion, up 192% YoY and 38% sequentially. Net dollar retention was 108%, an increase of 100 basis points from last quarter. They ended the fourth quarter with $3.9 billion in total remaining deal value, an increase of 5% sequentially. AIP boosted Palantir's total addressable market, with the TCV in the U.S. commercial segment reaching $343 million, showcasing a remarkable 107% growth YoY.</p><p>Additionally, Palantir remains an outlier among its peers, as the <strong>company's average revenue per customer</strong> (ARPC) remains off the chart compared to its peers, delivering a staggering ARPC of $4.5 million. The top 20 high-value customers drive most of Palantir's revenue. However, reliance on these customers is slowly <strong>declining</strong>, signifying the company's effort to serve an expansive and diverse market. On the positive side, the top 20 customers' contribution to total revenue dropped to 49.4% based on TTM as of December 2023, compared to 57.1% in FY21. As a result, the average revenue per customer of PLTR dropped below $5 million based on the latest TTM revenue, compared to $6.5 million in FY21.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7330b3dbe0063739a11a0feb0b9f4d4c\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><p>Finally, Palantir's remaining performance obligations (RPO) recovery also suggests improving revenue growth in the coming quarters. The company's net dollar retention remains above 100.0%, which indicates that the PLTR platform's stickiness has remained intact. Net dollar retention does not include revenue from new customers they acquired in the past 12 months and, therefore, <strong>does not yet fully capture the acceleration</strong> in their U.S. commercial business.</p><h2 id=\"id_3060580783\">AIP Upgrade: Seamless LLM Integration for Quicker Decisions and Market Expansion</h2><p>Palantir Technologies has recently enhanced its AIP platform by integrating large language models (LLMs), augmenting user-friendliness and power. AIP facilitates the seamless connection of LLMs with user data, aiding decision-making. The AIP Bootcamp expedites customer onboarding, contributing to remarkably swift time-to-market.</p><p>Integrating LLMs with Foundry through AIP significantly broadens the accessibility of deploying use cases, expanding the addressable market. While the company is observing initial momentum, it acknowledges that it is still at the initial stage of capturing this expanded market. Palantir has successfully covered nearly 200 use cases from AIP Boot camps, underscoring the potential of this approach, with a focus on data integration as a core value-driving principle.</p><p>AIP enables the integration of diverse data types, such as video conferences, incident response calls, Slack rooms, PDFs, images, video, and audio, leveraging the power of LLMs and ontology. The acceleration in AIP customer engagement is anticipated to continue, fueled by its adaptability and versatility.</p><p>The recent quarter saw Palantir signing multiple U.S. commercial deals, where AIP played a pivotal role in driving various deal archetypes. New customers attending boot camps swiftly signing enterprise contracts, AIP-driven conversions of ongoing pilots, and expansions in existing accounts are illustrative examples. Internationally, AIP reinforces partnerships in Continental Europe and fosters growth in select markets.</p><p>Lastly, Palantir's focus on enhancing product usability and charisma through AI-driven developments, particularly in LLMs, marks a convergence aimed at broadening Foundry's market appeal. Current research and development efforts are directed toward deploying software, models, and assets at the edge, aligning with the growing market trend of edge computing - positioning Palantir favorably to secure a substantial share in this evolving landscape.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6f3ab05e66d0cabae9105e27861c0d0e\" alt=\"LLM - Palantir Defense\" title=\"LLM - Palantir Defense\" tg-width=\"640\" tg-height=\"359\"/><span>LLM - Palantir Defense</span></p><h2 id=\"id_3599242473\">Turning Complex Challenges into Competitive Advantage with AIP Bootcamps</h2><p>Rather than rejecting projects with risky and resource-intensive installation requirements, Palantir actively seeks them out. They've obtained strict government clearances, manage complex data environments, offer cloud-agnostic integration, and don't shy away from long sales cycles. These are substantial barriers to entry for competitors.</p><p>Still, their fundamental competition is their own customers' internal software development. AIP Bootcamp makes platform onboarding much easier and forcefully addresses this competitive risk. Bootcamp teaches end-users how to use AIP effectively.</p><p>Additionally, Palantir is strategically intensifying efforts to convert boot camps into enterprise deals, evident in the noteworthy impact on sales cycles and the accelerated rate of new customer acquisition. In Q4, U.S. commercial saw a sequential rise of 22%, a substantial increase compared to 12% and 4% in Q3 and Q2, respectively.</p><p>The success stories include new customers attending boot camps and promptly signing enterprise contracts, demonstrating the efficacy of this conversion strategy. Cold outreaches leading to boot camps and subsequent enterprise agreements highlight the streamlined approach.</p><p>AIP-driven conversions of ongoing pilots constitute another facet of Palantir's successful strategy. Companies engaged in a pilot, during which AIP was introduced, ultimately converted to enterprise agreements. Moreover, AIP has been instrumental in driving expansions within existing key accounts. Demonstrating speed to value at boot camps, Palantir showcased its ability to deliver new use cases atop existing ontologies in as little as 24 hours, contributing significantly to successful agreements.</p><p>In tandem with the emphasis on boot camps, Palantir is strategically deepening its distribution channels to swiftly capitalize on opportunities in specific regions, focusing on expanding its presence in Japan. Hence, these strategic maneuvers underscore Palantir's commitment to driving efficient conversions, expanding market reach, and solidifying its position as a leader in the data integration landscape.</p><h2 id=\"id_2288010704\">How Palantir's Self-Selling Software Soars Beyond the Aviation Industry</h2><p>Palantir's greatest strength is product-led acquisition. They have dedicated support agents for each deployment. Then, they let the software sell itself by deepening existing relationships or cross-selling to businesses that work with their customers. The prime example is Skywise, initially built for Airbus SE (OTCPK:EADSF) but which has expanded throughout the airline industry.</p><p>Skywise is an aviation platform that is the central operating system of the airline industry. Adoption has been swift. Since June 2017, Skywise has expanded from zero to more than one hundred airlines. Each one is now an existing or potential customer - this is a product-led acquisition - something that will be an industry-agnostic tailwind for PLTR growth in the coming years.</p><p>When other airlines saw the benefits of PLTR software, they swiftly engaged with the company. No outbound sales efforts were needed because the platform sold itself. This platform initially grew from a single customer relationship with Airbus.</p><p>The platform's ability to garner new clients without outbound sales efforts, relying on the software's intrinsic value, underscores the effectiveness of Palantir's strategic approach and positions the company favorably for sustained expansion across diverse sectors.</p><h2 id=\"id_129334450\">Unlocking Value Beyond the Surface</h2><p>Despite the initial impression that Palantir is trading at elevated multiples, a more in-depth analysis reveals a nuanced perspective. About a year ago, the company achieved a significant milestone by transitioning to profitability. While its valuation might appear high initially, it likely reflects the market's recognition of PLTR's improved margin and, critically, the substantial potential of AIP.</p><p>This potential can extend the company's market reach beyond government contracts, venturing into diverse use cases within the commercial segment. Palantir's substantial government contracts and growing presence in pivotal industries like defense, healthcare, and finance, bolstered by strategic partnerships, further underscore its considerable long-term potential in the market.</p><p>Rule of 40 analysis holds significance for software or SaaS companies, signifying that those attaining a combined score of 40.0% in revenue growth and margin (with EBITDA margin in this instance) are more likely to achieve sustainable growth. PLTR can exceed the 40.0% threshold (sum of growth and margin) by revitalizing its revenue growth beyond 30.0% and continuing the upward trend in profitability margin.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/905e373641d072897f210cca42db058b\" alt=\"Author\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><h2 id=\"id_353816885\">Takeaway</h2><p>Palantir Technologies Inc. has outperformed expectations, delivering impressive returns and highlighting its strategic prowess and robust growth in the AI sector. Despite anticipating a market correction, the long-term outlook for PLTR remains positive, supported by solid fundamentals and aggressive growth strategies.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir: Why I Am Not Selling</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir: Why I Am Not Selling\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-14 14:00 GMT+8 <a href=https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies Inc.'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir expects ...</p>\n\n<a href=\"https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4543":"AI","BK4097":"系统软件","BK4588":"碎股","BK4023":"应用软件","PLTR":"Palantir Technologies Inc.","BK4192":"特殊消费者服务"},"source_url":"https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2419163746","content_text":"Palantir Technologies Inc.'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir expects upward growth of at least 40% in the U.S. commercial segment for the year, highlighting strong revenue momentum.Despite anticipating a market correction, the long-term outlook for Palantir Technologies remains positive, supported by solid fundamentals and aggressive growth strategies.Following the strong bull run YTD, a pullback in Palantir Technologies is necessary before breaking into new highs.Investment ThesisSince our in-depth analysis of Palantir Technologies Inc. in February 2022, when we first presented a bullish stance on the stock, the company has remarkably validated our conviction, richly rewarding patient investors.Our confidence was well-placed; since doubling down on our position, PLTR has delivered a staggering return of over 230% in less than 17 months. This exceptional performance is underpinned by consecutive profitability milestones, robust growth metrics, impressive conversion rates, and the impactful deployment of AI capabilities, all contributing to a sustained bull run.However, despite the significant gains, we anticipate a necessary pullback correction before PLTR reaches new heights. This expected correction should be viewed not as a deterrent, but as a potential opportunity for investors to enter or increase their positions in anticipation of further growth.Therefore, our long-term investment thesis remains intact, underpinned by Palantir's solid fundamentals, strategic growth initiatives, and the broadening application of its AI technologies.Data by YChartsPowering Growth and Diversification in the Commercial SectorArtificial intelligence platforms (AIP) momentum drives new customer conversions and existing customer expansions. The transformative effect of AIP on the business is best highlighted in the U.S. commercial bookings and backlog. Palantir experienced noteworthy achievements in the U.S. commercial sector, the most significant being shorter times to conversion and expansion (from a prototype to a product in months).By the 31st of December 2023, PLTR had 497 customers, with the commercial segment reporting high customer count growth of 14% quarter-over-quarter, while the government segment remained flat. The commercial segment experienced significant growth, with fourth-quarter revenue increasing by 32% year-over-year (YoY) and full-year revenue growing by 20%, exceeding $1 billion for the first time.Additionally, the US Commercial revenue in Q4 surged by 70% YoY, reaching $131 million. With a revamped go-to-market strategy and piloting approach followed by significantly compressed sales cycles, the U.S. customer count grew by 55% YoY to 221, reflecting a robust market presence. This acceleration is attributed to a surge in demand, resulting in the highest commercial Total Contract Value (TCV) booked in a quarter, showcasing a 156% growth YoY. Hence, the strategic expansion and increased demand in the U.S. contributed majorly to this growth.AuthorPalantir's accelerated customer acquisition process stems from three key drivers. First, boot camps are rapidly transitioning into paying customers. In Palantir boot camps, participants and potential users learn how to apply AI to mission-critical operations within their organizations. They progress from having no prior knowledge to building practical use cases.Once they feel empowered by Palantir's AI capabilities, the majority of them will convert into paying customers. Second, there's growth among existing customers and those with longstanding engagements with Palantir. Third, the introduction of AIP has further fueled this momentum. Despite these gains, Palantir recognizes that they have merely scratched the surface of their total addressable market, or TAM; they're only just getting started.The firm also reported a meaningful increase in their US commercial TCV on a dollar-weighted duration basis, up 107% YoY and 42% sequentially. In the fourth quarter, TCV booked was 1.15 billion, up 192% YoY and 38% sequentially. Net dollar retention was 108%, an increase of 100 basis points from last quarter. They ended the fourth quarter with $3.9 billion in total remaining deal value, an increase of 5% sequentially. AIP boosted Palantir's total addressable market, with the TCV in the U.S. commercial segment reaching $343 million, showcasing a remarkable 107% growth YoY.Additionally, Palantir remains an outlier among its peers, as the company's average revenue per customer (ARPC) remains off the chart compared to its peers, delivering a staggering ARPC of $4.5 million. The top 20 high-value customers drive most of Palantir's revenue. However, reliance on these customers is slowly declining, signifying the company's effort to serve an expansive and diverse market. On the positive side, the top 20 customers' contribution to total revenue dropped to 49.4% based on TTM as of December 2023, compared to 57.1% in FY21. As a result, the average revenue per customer of PLTR dropped below $5 million based on the latest TTM revenue, compared to $6.5 million in FY21.AuthorFinally, Palantir's remaining performance obligations (RPO) recovery also suggests improving revenue growth in the coming quarters. The company's net dollar retention remains above 100.0%, which indicates that the PLTR platform's stickiness has remained intact. Net dollar retention does not include revenue from new customers they acquired in the past 12 months and, therefore, does not yet fully capture the acceleration in their U.S. commercial business.AIP Upgrade: Seamless LLM Integration for Quicker Decisions and Market ExpansionPalantir Technologies has recently enhanced its AIP platform by integrating large language models (LLMs), augmenting user-friendliness and power. AIP facilitates the seamless connection of LLMs with user data, aiding decision-making. The AIP Bootcamp expedites customer onboarding, contributing to remarkably swift time-to-market.Integrating LLMs with Foundry through AIP significantly broadens the accessibility of deploying use cases, expanding the addressable market. While the company is observing initial momentum, it acknowledges that it is still at the initial stage of capturing this expanded market. Palantir has successfully covered nearly 200 use cases from AIP Boot camps, underscoring the potential of this approach, with a focus on data integration as a core value-driving principle.AIP enables the integration of diverse data types, such as video conferences, incident response calls, Slack rooms, PDFs, images, video, and audio, leveraging the power of LLMs and ontology. The acceleration in AIP customer engagement is anticipated to continue, fueled by its adaptability and versatility.The recent quarter saw Palantir signing multiple U.S. commercial deals, where AIP played a pivotal role in driving various deal archetypes. New customers attending boot camps swiftly signing enterprise contracts, AIP-driven conversions of ongoing pilots, and expansions in existing accounts are illustrative examples. Internationally, AIP reinforces partnerships in Continental Europe and fosters growth in select markets.Lastly, Palantir's focus on enhancing product usability and charisma through AI-driven developments, particularly in LLMs, marks a convergence aimed at broadening Foundry's market appeal. Current research and development efforts are directed toward deploying software, models, and assets at the edge, aligning with the growing market trend of edge computing - positioning Palantir favorably to secure a substantial share in this evolving landscape.LLM - Palantir DefenseTurning Complex Challenges into Competitive Advantage with AIP BootcampsRather than rejecting projects with risky and resource-intensive installation requirements, Palantir actively seeks them out. They've obtained strict government clearances, manage complex data environments, offer cloud-agnostic integration, and don't shy away from long sales cycles. These are substantial barriers to entry for competitors.Still, their fundamental competition is their own customers' internal software development. AIP Bootcamp makes platform onboarding much easier and forcefully addresses this competitive risk. Bootcamp teaches end-users how to use AIP effectively.Additionally, Palantir is strategically intensifying efforts to convert boot camps into enterprise deals, evident in the noteworthy impact on sales cycles and the accelerated rate of new customer acquisition. In Q4, U.S. commercial saw a sequential rise of 22%, a substantial increase compared to 12% and 4% in Q3 and Q2, respectively.The success stories include new customers attending boot camps and promptly signing enterprise contracts, demonstrating the efficacy of this conversion strategy. Cold outreaches leading to boot camps and subsequent enterprise agreements highlight the streamlined approach.AIP-driven conversions of ongoing pilots constitute another facet of Palantir's successful strategy. Companies engaged in a pilot, during which AIP was introduced, ultimately converted to enterprise agreements. Moreover, AIP has been instrumental in driving expansions within existing key accounts. Demonstrating speed to value at boot camps, Palantir showcased its ability to deliver new use cases atop existing ontologies in as little as 24 hours, contributing significantly to successful agreements.In tandem with the emphasis on boot camps, Palantir is strategically deepening its distribution channels to swiftly capitalize on opportunities in specific regions, focusing on expanding its presence in Japan. Hence, these strategic maneuvers underscore Palantir's commitment to driving efficient conversions, expanding market reach, and solidifying its position as a leader in the data integration landscape.How Palantir's Self-Selling Software Soars Beyond the Aviation IndustryPalantir's greatest strength is product-led acquisition. They have dedicated support agents for each deployment. Then, they let the software sell itself by deepening existing relationships or cross-selling to businesses that work with their customers. The prime example is Skywise, initially built for Airbus SE (OTCPK:EADSF) but which has expanded throughout the airline industry.Skywise is an aviation platform that is the central operating system of the airline industry. Adoption has been swift. Since June 2017, Skywise has expanded from zero to more than one hundred airlines. Each one is now an existing or potential customer - this is a product-led acquisition - something that will be an industry-agnostic tailwind for PLTR growth in the coming years.When other airlines saw the benefits of PLTR software, they swiftly engaged with the company. No outbound sales efforts were needed because the platform sold itself. This platform initially grew from a single customer relationship with Airbus.The platform's ability to garner new clients without outbound sales efforts, relying on the software's intrinsic value, underscores the effectiveness of Palantir's strategic approach and positions the company favorably for sustained expansion across diverse sectors.Unlocking Value Beyond the SurfaceDespite the initial impression that Palantir is trading at elevated multiples, a more in-depth analysis reveals a nuanced perspective. About a year ago, the company achieved a significant milestone by transitioning to profitability. While its valuation might appear high initially, it likely reflects the market's recognition of PLTR's improved margin and, critically, the substantial potential of AIP.This potential can extend the company's market reach beyond government contracts, venturing into diverse use cases within the commercial segment. Palantir's substantial government contracts and growing presence in pivotal industries like defense, healthcare, and finance, bolstered by strategic partnerships, further underscore its considerable long-term potential in the market.Rule of 40 analysis holds significance for software or SaaS companies, signifying that those attaining a combined score of 40.0% in revenue growth and margin (with EBITDA margin in this instance) are more likely to achieve sustainable growth. PLTR can exceed the 40.0% threshold (sum of growth and margin) by revitalizing its revenue growth beyond 30.0% and continuing the upward trend in profitability margin.AuthorTakeawayPalantir Technologies Inc. has outperformed expectations, delivering impressive returns and highlighting its strategic prowess and robust growth in the AI sector. Despite anticipating a market correction, the long-term outlook for PLTR remains positive, supported by solid fundamentals and aggressive growth strategies.","news_type":1},"isVote":1,"tweetType":1,"viewCount":14,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}