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06-18

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As Nvidia Soars, Stock Market's Deflated Laggards Spark Concern

06-14

Investing in Nvidia: A Strategic Opportunity Nvidia Corporation, a leader in graphics processing units (GPUs) and artificial intelligence (AI) technology, presents a compelling investment opportunity. As the technological landscape evolves, Nvidia is positioned at the forefront of several high-growth sectors, making it a robust candidate for investors looking for long-term value. Here’s why investing in Nvidia could be a strategic move. 1. Dominance in the GPU Market Nvidia’s GPUs are the gold standard in the industry, particularly in gaming, professional visualization, data centers, and automotive markets. The company’s flagship product line, the GeForce RTX series, continues to set benchmarks for performance and innovation. These GPUs are not only critical for high-end gaming but also fo

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TSMC Jumps 5% Surpassing Berkshire in Market Value

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@TigerEvents:[10th Anniv] How to Prove You're a True Tiger Fan?

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25 Reasons to Buy Nvidia Stock Now

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Nvidia: A $5 Trillion Market Cap Is Within Reach

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$NVIDIA Corp(NVDA)$ Back in stock market for Nvidia![Miser]

07-04 22:34

Tesla is not just a car company$Tesla Motors(TSLA)$

Tesla: A Tech Company Disguised As An Automaker

07-03 13:23

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Elon Musk Warns Tesla Short Sellers, Including Bill Gates, That They Will Be Obliterated

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is not just a car company<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;","listText":"Tesla is not just a car company<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;","text":"Tesla is not just a car company$Tesla Motors(TSLA)$","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/323984366710856","repostId":"2448485700","repostType":2,"repost":{"id":"2448485700","pubTimestamp":1720016512,"share":"https://www.laohu8.com/m/news/2448485700?lang=&edition=full","pubTime":"2024-07-03 22:21","market":"nz","language":"en","title":"Tesla: A Tech Company Disguised As An Automaker","url":"https://stock-news.laohu8.com/highlight/detail?id=2448485700","media":"seekingalpha","summary":"Tesla, Inc.'s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.Tesla is heavily in","content":"<html><head></head><body><ul style=\"\"><li><p>Tesla, Inc.&#39;s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.</p></li><li><p>Tesla is heavily investing into new technologies like Full Self Driving, robotics manufacturing solutions, and AI.</p></li><li><p>Tesla’s performances speak for themselves, in all aspects they are superior to your average automaker.</p></li><li><p>Tesla&#39;s risk-reward profile has the potential to generate a positive return to its shareholders.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/cfa24e1bbc8510dc5f7300426fe86f72\" tg-width=\"750\" tg-height=\"500\"/></p><h2 id=\"id_2797615779\">Executive Summary</h2><p><strong>Tesla, Inc.&#39;s</strong> (NASDAQ:TSLA) valuation is influenced by whether the firm will remain an automaker or it will evolve into a technology hardware company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.</p><p>At the present day, Tesla is undoubtedly an automobile company, with 1.8 billion vehicles sold in 2023. However, it&#39;s undeniable that the company is heavily investing in new technologies, among all in its Full Self-Driving (FSD) capabilities.</p><p>But Tesla tech doesn’t stop at autopilot, the firm is notably investing and developing robotics manufacturing solutions, currently implemented in its factories to improve efficiency and profitability, and obviously, they couldn&#39;t miss investing in AI technologies.</p><p>The management couldn’t stress more on their robotics and AI future during the 2024 Q1 earnings call:</p><blockquote><p><em>We should be thought of as an AI or robotics company. If you value Tesla as just like an auto company, it&#39;s just the wrong framework. If you ask the wrong question, then the right answer is impossible.</em></p></blockquote><p>Hence, the following analysis will try to correctly answer the question, by assessing how revenues, operating margins, and free cash flows will change in two different scenarios: one assuming Tesla remains an excellent EVs maker, and another one assuming Tesla will evolve into a technology hardware company leveraging on its vehicles to capitalize on its tech solutions.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/fc9286a29ca42bc706f52d06db8d2aca\" tg-width=\"640\" tg-height=\"360\"/></p><p>1st scenario (Source - BlackNote Investment)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aca0519df13da092833cbeac0e8db2ad\" tg-width=\"640\" tg-height=\"360\"/></p><p>2nd scenario (Source - BlackNote Investment)</p><p></p><p>Before deep diving into the valuation, it’s worth mentioning that, by any means, this analysis does not want to be a technical and detailed assessment of the technologies under development by Tesla.</p><p>Rather, it will treat the topic from a general point of view – using the reference “Technology solutions revenues” instead of discerning from “robotaxis,” “robotics,” and “AI revenues” – focusing on how Tesla’s value changes based on how investors identify the company.</p><p>Despite we agree that more detail is always preferable, in this case, we believe that excessively dwelling on single technologies not yet fully implemented won’t add value – or change the results of the valuation – if not increase the chance of committing mistakes.</p><h2 id=\"id_2426348479\">Tesla The Auto Company</h2><p>In 2023 Tesla&#39;s total revenues sat at $96.7 billion, an increase of 18.8%, significantly lower than the 58.8% median revenue growth rate investors were used to. However, it was still a good performance when compared to the y-o-y automobile industry growth rate of 14.1%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/1857fea1f33faf50ae47ccdc297607bf\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><p>As of the 2024 Q1, revenue declined (8.7)% q-o-q.</p><p>Leveraging on its battery and renewable energy know-how, Tesla is also active in the solar and energy storage business, which in 2023 accounted for 6.2% of revenues, equal to $6 billion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4b6222a41766445ed912b9a4099cf901\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><h3 id=\"id_4050956685\">Profitability Metrics</h3><p>The 2023 Tesla&#39;s operating margin was 9.2%, declining from the 12.1% and 16.8% operating margin registered in 2021 and 2022 respectively, but still better than the past decade&#39;s industry median value of 6.5%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/26d0e0e2d4bd26d01e9a7636eb728d5f\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><p>The total operating profit was $8.9 billion, registering a decrease of (34.9)% y-o-y, while in the latest Q1, the operating margin was at 5.5%, with the operating profit declining (56)% q-o-q.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6b0b9a2a6b087d2f3e5f08e6381c0b0c\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><p>Looking at free cash flows to the firm (FCFF), in 2023 the FCFF sat at $6.8 billion, equal to a FCFF margin of 7% - significantly better than the automobile industry’s 10Y median FCFF margin of 1.5% - continuing on the positive trend begun in 2019 when the company turned free cash flow positive.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a0148db04456865a84d8729d327d09df\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><h3 id=\"id_845981862\">Reinvestments &amp; Efficiency Ratios</h3><p>Over the past decade, Tesla has reinvested heavily into its business with the median reinvestment margin of Tesla standing at 6.8%, comprising net capital expenditures, acquisitions, and changes in working capital. When treating R&amp;D expenses as capital expenditures due to their long-term value generation, this figure adjusts to 11.2%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/52dc188915067bff34409fb14899b29f\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><p>The same adjusted reinvestment margin scored by the automobile industry over the past decade sits at only 4.5%.</p><p>In terms of efficiency on capital reinvested into the company, during the period 2013-2023, Tesla boasts a median sales to invested capital ratio of 2.56, more than doubling the industry median value of 1.16.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b9a5769ccd1d3acc9213797a7113122d\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><h3 id=\"id_3240001027\">Tesla The Tech Company</h3><p>Tesla’s performances speak for themselves, in all aspects they are superior to your average automaker.</p><p>Despite the stumble in 2023 and the first half of 2024 – due to a weaker-than-expected EVs environment, which is tackling every automaker, not just Tesla – the firm is playing in a league of its own.</p><p>Tesla’s revenues are growing faster, they are more profitable, and more efficient with their capital investments, when compared to traditional companies in the automobile industry, all culminating in greater free cash flow generation.</p><p>Even if Tesla is still deriving the majority of its revenues from the sales of vehicles, it appears that treating the firm as a pure auto company is wrong in the first place, at least from a metric perspective.</p><p>Tesla is still – and likely will always be – highly influenced by automotive industry dynamics, as shown by the downturn in revenue growth rates following the 2023 deterioration of the EVs market.</p><p>But if the firm is undoubtedly an automobile company when it comes to revenue generation, in terms of profitability, reinvestment, and cash flow generation it is full-fledged a technology hardware company.</p><p>The 10Y median operating margin for a technology hardware company is 12.1%, while the 10Y median FCF margin is 8%.</p><p>Thanks to the technology in its EVs, Tesla was able to create a solid moat, resulting in greater revenue growth; selling its vehicles at a premium, improving profitability; and thanks to robotics to improve its factories&#39; efficiency, improving cash flow generation.</p><p>Here is an extract from the 2021 Q4 earnings call:</p><blockquote><p><em>From the hardware side, we are aggressively driving manufacturing innovations and operational efficiency to reduce cost. And with the rapid development of FSD, software-based profits will ultimately become a strong addition to the profits generated by selling hardware.</em></p></blockquote><h4 id=\"id_3171591836\">Industry Overview</h4><p>However, as said previously, Tesla will always be highly influenced by the automotive industry dynamics when it comes to selling its hardware, as without first selling its electric vehicles, Tesla cannot capitalize on its technologies.</p><p>With its $90.7 billion revenues from the EVs segment, tesla has established a decent presence in the automobile industry, representing 2.3% of the industry&#39;s total revenues of $3.86 trillion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/e9fb691d114cce49f0909ecd3c44642f\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>The automobile industry is highly competitive. Looking at the industry in its entirety, primary players consist of Volkswagen (OTCPK:VWAGY) with a 9.2% market share, Toyota (TM) with an 8% market share, and Ford (F) with a 4.6% market share.</p><p>In the EVs segment, Tesla’s main competitor is the Chinese conglomerate BYD, which despite boosting only an overall 2.1% market share, is the leading new energy vehicles automaker in China and is rapidly expanding its presence in overseas markets thanks to its low-price vehicles.</p><h4 id=\"id_2131235333\">Industry Growth Forecasts</h4><p>From 2013 to 2023, the industry’s revenues grew at a CAGR of 4.3%, increasing 1.53 times from $2.52 trillion to $3.87 trillion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f75073d983b7d91031aabaaf288b0e72\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>Despite lower-than-anticipated electric vehicle adoption rates, which have led legacy automakers to adjust spending, production, and product launches of new energy vehicles (NEVs), it’s clear that NEVs are the future of the automobile industry with automakers that, eventually, will be forced by legislators to cease the production of internal combustion engine (ICE) vehicles to promote more sustainable means of transportation.</p><p>Other than a secular switch in vehicles’ powering systems, which will boost the sale of new vehicles throughout the next decade, emerging economies – especially Asian ones like Thailand, India, Indonesia, Taiwan, and China for a lesser part – are expected to drive the demand for new cars.</p><p>Combining both the reinvestment made through the past decade and the industry&#39;s ability to generate revenues from the investments made, the 2024 expected revenue growth rate for the industry is 5.1%.</p><p>The industry&#39;s expected growth rate, and all the related industry assumptions, are based on the 2024 Automobile Industry Outlook published by BlackNote Investment.</p><p>By 2033, the automobile industry revenues are expected to reach $6.07 trillion, increasing 1.57 times from the $3.87 trillion registered in 2023 at a CAGR of 4.6%. We projected the industry’s expected revenues 10 years from now, applying the expected growth rate of 5.1% and allowing it to slowly decline as the industry approaches the economy&#39;s perpetual growth rate, represented in this case by the USD risk-free rate.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b5cd1b6adc291b466a4edd8d813a5bf4\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><h4 id=\"id_721243089\">Tesla Auto Company Growth Forecasts</h4><p>Projecting Tesla’s future market share, over the period 2013-2023, its market share significantly improved from 0.1% to 2.3%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ba1fda645c36e0d236d40fac1739776e\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>Despite the general slowdown in new energy vehicle adoption, it’s not a bold statement to say that electrification is the future of the automotive industry. As a pioneer in the EVs segment, it is undeniable that Tesla is at the forefront of this secular transition towards more sustainable means of transportation.</p><p>Considering Tesla’s brand recognition and superior features of its electric vehicles, we expect Tesla to achieve a 4.5% by 2033, becoming the third-largest automaker, with revenues from the automotive segment projected to reach $273.5 billion, representing an increase of 3 times from the 2023 revenues of $90.7 billion at a CAGR of 11.7%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b7857e5ca4cafaf503e654b73c284f21\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>Assuming the average selling price of its vehicles remains around $50k – for the sake of simplicity – it would translate into 5.6 billion vehicles sold by 2033.</p><p>Briefly dwelling on the solar and energy storage segment, revenues are expected to improve from $6 billion in 2023 to $35.4 billion by 2033, as Tesla improve its market share in the renewable energy industry from 1% to 3.8%.</p><p>Therefore, assuming Tesla will remain only the excellent automaker it already is, its total revenues are projected to reach $308.9 billion by 2033, representing an increase of 3.2 times from the 2023 revenues of $96.7 billion at a CAGR of 12.3%.</p><h4 id=\"id_4097653058\">Tesla Tech Company Growth Forecasts</h4><p>Now, projecting Tesla revenues in the scenario where it becomes a full-fledged technology hardware company, here is an extract from the 2020 Q4 earnings call that displays perfectly how Tesla’s investments in new technologies are expected to play out in the future:</p><blockquote><p><em>If Tesla ships, let&#39;s say, hypothetically, $50 billion worth of vehicles and those vehicles become Full Self-Driving and can be used as robotaxis, the utility increases from an average of 12 hours a week to potentially an average of 60 hours a week if they&#39;re capable of serving as robotaxi. So that&#39;s like roughly a 5x increase in utility…But let&#39;s just assume that the car becomes twice as useful, that would be a doubling again of the revenue of the company, which is almost entirely gross margin. So it will be like having $50 million of incremental profit basically from that because of the software.</em></p></blockquote><p>The key concept here is the vehicles&#39; increased utility due to the new technologies implemented by Tesla.</p><p>The primary usage derived from increased utility would be the long-awaited robotaxis services, but the management also expressed their interest in being able to remotely use the advanced AI chips needed to operate FSD capabilities for computational needs when the cars are not used for transportation needs.</p><p>However, as said at the very beginning, our valuation won’t be a thorough analysis of Tesla’s tech. Hence, we will just assess how the assumption of increased vehicle utility will play on Tesla&#39;s ability to generate revenues.</p><p>Assuming Tesla will eventually double the utility of each EV sold, we assumed that starting from 2026 the firm will start to recognize revenues from its technological solutions business line, and from 2026 to 2033 the segment revenues will grow from 5% to 50% of total revenues.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6de0abf8a9fd2a6fb20ba23d913a882b\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>We are aware that this particular assumption is totally arbitrary and subjective, however, we think it is a plausible pathway towards the management goal of doubling vehicles&#39; utility in the next 10 years.</p><p>Therefore, assuming Tesla will evolve into a technology hardware company, its total revenues are projected to reach $617.9 billion by 2033, representing an increase of 6.4 times from the 2023 revenues of $96.7 billion at a CAGR of 20.4%.</p><h4 id=\"id_1483300108\">Tesla Auto Company Profitability</h4><p>Moving on to projecting profitability, as said previously, even if Tesla remains only an automaker, its business model already benefits from all the tech developed by the firm, granting it better profitability than the average company in the automobile industry.</p><p>For such reason, even in the scenario of Tesla the auto company, we still expect the firm to achieve an operating margin in line with the median operating margin of the technology hardware industry equal to 12.1% by 2033.</p><h4 id=\"id_1324928965\">Tesla Tech Company Profitability</h4><p>As regards the scenario in which Tesla evolves to be a full-fledged technology hardware company, starting from the 12.1% operating margin expected for the automotive segment, we assumed the technology solutions segment to achieve profitability levels on par with software companies.</p><p>It might seem – and probably is – an aggressive assumption to make, however, sticking with management’s expectations of doubling vehicles&#39; utility, the extra revenues derived by the increased utility, are likely to be generated with little marginal costs on top of the already expensed R&amp;D costs incurred to develop new technologies and vehicles.</p><p>The software industry boasts a 10-year median operating margin of 22.3% and a 10-year median FCF margin of 10.7%.</p><p>By 2033, given our assumption the technology solutions segment accounts for 50% of revenues, the average operating margin for Tesla in the scenario it generates revenues as a technology hardware company is expected to be 17.2%.</p><h4 id=\"id_4137343423\">Reinvestment Needs</h4><p>In both scenarios, we expected Tesla to maintain a reinvestment margin in line with the automobile industry average, equal to 4.5%, whether it remains an auto company or evolves into a tech company.</p><p>Despite the future of the company, it is undeniable that Tesla has to keep investing in the development of new vehicles and in maintaining and improving factory capacity, as without selling the hardware in the first place, it cannot capitalize on its tech.</p><h4 id=\"id_3949440677\">Tesla Auto Company Future Cash Flows</h4><p>Synthesizing all underlying assumptions in the scenario where remains an excellent EVs maker – $308.9 billion in revenues by 2033, 12.1% operating margin, and reinvestment margin of around 4.5% - Tesla&#39;s free cash flows to the firm are anticipated to swell to $14.5 billion by 2033, equal to a FCFF margin of 4.7%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/31260d810e97fb0d94fc3c6dbdf66444\" tg-width=\"640\" tg-height=\"360\"/></p><p>1st scenario (Source - BlackNote Investment)</p><p></p><h4 id=\"id_402358291\">Tesla Tech Company Future Cash Flows</h4><p>Synthesizing all underlying assumptions in the scenario where evolve into a technology hardware company – $617.9 billion in revenues by 2033, 17.2% operating margin, and reinvestment margin of around 4.5% - Tesla&#39;s free cash flows to the firm are anticipated to swell to $53.2 billion by 2033, equal to a FCFF margin of 8.6%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aa17ad706b2432dcb8111e1bc9802302\" tg-width=\"640\" tg-height=\"360\"/></p><p>2nd scenario (Source - BlackNote Investment)</p><p></p><h4 id=\"id_939082646\">Company Valuation</h4><p>In the first scenario, we apply a discount rate of 7.8% for the next 10 years, and a discount rate of 7.3% in perpetuity, while in the second scenario, we start with a discount rate of 7.8%, but we gradually adjust it to 7.3% as also the company risk profile changes as the firm evolves from an auto company to a technology hardware company</p><p>With these assumptions, we obtain that the present value of these cash flows – after adjusting for debt and cash on hand – is equal to $310.2 billion or $97.3 per share, in the auto company scenario, and $1.01 trillion or $317.2 per share, in the tech company scenario.</p><p>Compared to the current prices, in the first scenario, Tesla stock is overvalued by 53.7% - negative alpha of (9.3)% - while in the second scenario, Tesla’s stock is undervalued by 51.1% - positive alpha of 3%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/81709ddef99b8d3d2868905ec1bfd3f6\" tg-width=\"640\" tg-height=\"360\"/></p><p>1st scenario (Source - BlackNote Investment)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a01f6e59fe978a9e91e9e45abb067df7\" tg-width=\"640\" tg-height=\"360\"/></p><p>2nd scenario (Source - BlackNote Investment)</p><p></p><p>However, given the number of assumptions made throughout the valuations, especially as regards the scenario seeing Tesla becoming a full-fledged technology company, it would be more realistic to assume that the truth lies somewhere in between.</p><p>Assigning a likelihood of 50% to both scenarios – again for the sake of simplicity – results that the intrinsic value of Tesla is equal to $670.6 billion or $210 per share, making Tesla’s stocks fairly valued at current prices.</p><p>The Street target for Tesla – based on 42 different analyst expectations – is sitting at $183 per share, as of the 1st of July 2024, with a high of $310 and a low of $85, and 21 Street recommendations expressing the rating “Hold.”</p><h4 id=\"id_2029630129\">Discount Rate</h4><p>To determine the appropriate discount rate, we employ the WACC method, which considers both the cost of equity and the cost of debt.</p><p>The cost of equity – 7.8% for the auto company and 7.3% for the tech company – is derived using the USA equity risk premium of 4.6% – as of June 2024 – the current USD risk-free rate of 4.2%, and the company&#39;s beta of 0.79, for the auto company, and 0.7, for the tech company. The auto company&#39;s beta is based on the automobile industry’s unlevered beta of 0.65, while the tech company&#39;s beta is based on the technology hardware industry’s unlevered beta of 0.57.</p><p>The cost of debt – 4.9% – represents the expected return demanded by debt holders and is influenced by the company&#39;s specific risk profile and the broader market conditions. It is computed considering the current USD risk-free rate of 4.2%, the company&#39;s default spread of 0.7%, and the USA default spread of 0%.</p><p>With a current Equity to Enterprise Value of 98.8% and a Debt to Enterprise Value of 1.2%, Tesla’s discount rate for the next 10 years is 7.8%, in the auto company scenario, and 7.4%, in the tech company ones.</p><p>As Tesla enters the steady state, both the company’s beta and company default spread are expected to approach the industry’s median values of 0.82 and 0.7%, respectively for the auto company, and 0.71 and 0.9%, respectively for the tech company.</p><p>Mature companies often have more predictable cash flows and may change their financing strategies. We anticipate Tesla to adjust its Equity to Enterprise Value and Debt to Enterprise Value towards the industry median of 83.4% and 16.6%, respectively for the auto company, and 89.5% and 10.5%, respectively for the tech company, reflecting a more typical capital structure for a stable company.</p><p>With these assumptions, the discount rate used to discount the cash flows in perpetuity is 7.3% in the auto company scenario, and 7.2% in the tech company scenario.</p><h2 id=\"id_1037040869\">Conclusion</h2><p>In conclusion, Tesla’s valuation is highly influenced by how investors see the firm, whether as an automaker or as a technology company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.</p><p>Regardless of how pessimistic investors&#39; assumptions are, it is undeniable that Tesla is not a simple automaker, and even in the auto company scenario, it should be treated – at least from a profitability and cash flow perspective – as a company with strong similarity to the tech sector.</p><p>In conclusion, our assumptions suggest that Tesla’s intrinsic value lies above the $210 per share assumed in the blended scenario and that at current prices, Tesla&#39;s risk-reward profile has the potential to generate a positive return to its shareholders, representing a good investment opportunity.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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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: A Tech Company Disguised As An Automaker\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-03 22:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4702260-tesla-a-tech-company-disguised-as-an-automaker><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla, Inc.'s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.Tesla is heavily ...</p>\n\n<a href=\"https://seekingalpha.com/article/4702260-tesla-a-tech-company-disguised-as-an-automaker\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","LU0738911758.USD":"Blackrock Global Equity Income A6 USD","LU1861558580.USD":"日兴方舟颠覆性创新基金B","TSLA":"特斯拉","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","BK4527":"明星科技股","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4588":"碎股","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","BK4551":"寇图资本持仓","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4574":"无人驾驶","LU0056508442.USD":"贝莱德世界科技基金A2","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","BK4581":"高盛持仓","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU2063271972.USD":"富兰克林创新领域基金","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","BK4592":"伊斯兰概念","LU0097036916.USD":"贝莱德美国增长A2 USD","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","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","LU0949170772.SGD":"Blackrock Global Equity Income A6 SGD-H","BK4585":"ETF&股票定投概念","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS"},"source_url":"https://seekingalpha.com/article/4702260-tesla-a-tech-company-disguised-as-an-automaker","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2448485700","content_text":"Tesla, Inc.'s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.Tesla is heavily investing into new technologies like Full Self Driving, robotics manufacturing solutions, and AI.Tesla’s performances speak for themselves, in all aspects they are superior to your average automaker.Tesla's risk-reward profile has the potential to generate a positive return to its shareholders.Executive SummaryTesla, Inc.'s (NASDAQ:TSLA) valuation is influenced by whether the firm will remain an automaker or it will evolve into a technology hardware company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.At the present day, Tesla is undoubtedly an automobile company, with 1.8 billion vehicles sold in 2023. However, it's undeniable that the company is heavily investing in new technologies, among all in its Full Self-Driving (FSD) capabilities.But Tesla tech doesn’t stop at autopilot, the firm is notably investing and developing robotics manufacturing solutions, currently implemented in its factories to improve efficiency and profitability, and obviously, they couldn't miss investing in AI technologies.The management couldn’t stress more on their robotics and AI future during the 2024 Q1 earnings call:We should be thought of as an AI or robotics company. If you value Tesla as just like an auto company, it's just the wrong framework. If you ask the wrong question, then the right answer is impossible.Hence, the following analysis will try to correctly answer the question, by assessing how revenues, operating margins, and free cash flows will change in two different scenarios: one assuming Tesla remains an excellent EVs maker, and another one assuming Tesla will evolve into a technology hardware company leveraging on its vehicles to capitalize on its tech solutions.1st scenario (Source - BlackNote Investment)2nd scenario (Source - BlackNote Investment)Before deep diving into the valuation, it’s worth mentioning that, by any means, this analysis does not want to be a technical and detailed assessment of the technologies under development by Tesla.Rather, it will treat the topic from a general point of view – using the reference “Technology solutions revenues” instead of discerning from “robotaxis,” “robotics,” and “AI revenues” – focusing on how Tesla’s value changes based on how investors identify the company.Despite we agree that more detail is always preferable, in this case, we believe that excessively dwelling on single technologies not yet fully implemented won’t add value – or change the results of the valuation – if not increase the chance of committing mistakes.Tesla The Auto CompanyIn 2023 Tesla's total revenues sat at $96.7 billion, an increase of 18.8%, significantly lower than the 58.8% median revenue growth rate investors were used to. However, it was still a good performance when compared to the y-o-y automobile industry growth rate of 14.1%.Source - TIKR TerminalAs of the 2024 Q1, revenue declined (8.7)% q-o-q.Leveraging on its battery and renewable energy know-how, Tesla is also active in the solar and energy storage business, which in 2023 accounted for 6.2% of revenues, equal to $6 billion.Source - TIKR TerminalProfitability MetricsThe 2023 Tesla's operating margin was 9.2%, declining from the 12.1% and 16.8% operating margin registered in 2021 and 2022 respectively, but still better than the past decade's industry median value of 6.5%.Source - TIKR TerminalThe total operating profit was $8.9 billion, registering a decrease of (34.9)% y-o-y, while in the latest Q1, the operating margin was at 5.5%, with the operating profit declining (56)% q-o-q.Source - TIKR TerminalLooking at free cash flows to the firm (FCFF), in 2023 the FCFF sat at $6.8 billion, equal to a FCFF margin of 7% - significantly better than the automobile industry’s 10Y median FCFF margin of 1.5% - continuing on the positive trend begun in 2019 when the company turned free cash flow positive.Source - TIKR TerminalReinvestments & Efficiency RatiosOver the past decade, Tesla has reinvested heavily into its business with the median reinvestment margin of Tesla standing at 6.8%, comprising net capital expenditures, acquisitions, and changes in working capital. When treating R&D expenses as capital expenditures due to their long-term value generation, this figure adjusts to 11.2%.Source - TIKR TerminalThe same adjusted reinvestment margin scored by the automobile industry over the past decade sits at only 4.5%.In terms of efficiency on capital reinvested into the company, during the period 2013-2023, Tesla boasts a median sales to invested capital ratio of 2.56, more than doubling the industry median value of 1.16.Source - TIKR TerminalTesla The Tech CompanyTesla’s performances speak for themselves, in all aspects they are superior to your average automaker.Despite the stumble in 2023 and the first half of 2024 – due to a weaker-than-expected EVs environment, which is tackling every automaker, not just Tesla – the firm is playing in a league of its own.Tesla’s revenues are growing faster, they are more profitable, and more efficient with their capital investments, when compared to traditional companies in the automobile industry, all culminating in greater free cash flow generation.Even if Tesla is still deriving the majority of its revenues from the sales of vehicles, it appears that treating the firm as a pure auto company is wrong in the first place, at least from a metric perspective.Tesla is still – and likely will always be – highly influenced by automotive industry dynamics, as shown by the downturn in revenue growth rates following the 2023 deterioration of the EVs market.But if the firm is undoubtedly an automobile company when it comes to revenue generation, in terms of profitability, reinvestment, and cash flow generation it is full-fledged a technology hardware company.The 10Y median operating margin for a technology hardware company is 12.1%, while the 10Y median FCF margin is 8%.Thanks to the technology in its EVs, Tesla was able to create a solid moat, resulting in greater revenue growth; selling its vehicles at a premium, improving profitability; and thanks to robotics to improve its factories' efficiency, improving cash flow generation.Here is an extract from the 2021 Q4 earnings call:From the hardware side, we are aggressively driving manufacturing innovations and operational efficiency to reduce cost. And with the rapid development of FSD, software-based profits will ultimately become a strong addition to the profits generated by selling hardware.Industry OverviewHowever, as said previously, Tesla will always be highly influenced by the automotive industry dynamics when it comes to selling its hardware, as without first selling its electric vehicles, Tesla cannot capitalize on its technologies.With its $90.7 billion revenues from the EVs segment, tesla has established a decent presence in the automobile industry, representing 2.3% of the industry's total revenues of $3.86 trillion.Source - BlackNote InvestmentThe automobile industry is highly competitive. Looking at the industry in its entirety, primary players consist of Volkswagen (OTCPK:VWAGY) with a 9.2% market share, Toyota (TM) with an 8% market share, and Ford (F) with a 4.6% market share.In the EVs segment, Tesla’s main competitor is the Chinese conglomerate BYD, which despite boosting only an overall 2.1% market share, is the leading new energy vehicles automaker in China and is rapidly expanding its presence in overseas markets thanks to its low-price vehicles.Industry Growth ForecastsFrom 2013 to 2023, the industry’s revenues grew at a CAGR of 4.3%, increasing 1.53 times from $2.52 trillion to $3.87 trillion.Source - BlackNote InvestmentDespite lower-than-anticipated electric vehicle adoption rates, which have led legacy automakers to adjust spending, production, and product launches of new energy vehicles (NEVs), it’s clear that NEVs are the future of the automobile industry with automakers that, eventually, will be forced by legislators to cease the production of internal combustion engine (ICE) vehicles to promote more sustainable means of transportation.Other than a secular switch in vehicles’ powering systems, which will boost the sale of new vehicles throughout the next decade, emerging economies – especially Asian ones like Thailand, India, Indonesia, Taiwan, and China for a lesser part – are expected to drive the demand for new cars.Combining both the reinvestment made through the past decade and the industry's ability to generate revenues from the investments made, the 2024 expected revenue growth rate for the industry is 5.1%.The industry's expected growth rate, and all the related industry assumptions, are based on the 2024 Automobile Industry Outlook published by BlackNote Investment.By 2033, the automobile industry revenues are expected to reach $6.07 trillion, increasing 1.57 times from the $3.87 trillion registered in 2023 at a CAGR of 4.6%. We projected the industry’s expected revenues 10 years from now, applying the expected growth rate of 5.1% and allowing it to slowly decline as the industry approaches the economy's perpetual growth rate, represented in this case by the USD risk-free rate.Source - BlackNote InvestmentTesla Auto Company Growth ForecastsProjecting Tesla’s future market share, over the period 2013-2023, its market share significantly improved from 0.1% to 2.3%.Source - BlackNote InvestmentDespite the general slowdown in new energy vehicle adoption, it’s not a bold statement to say that electrification is the future of the automotive industry. As a pioneer in the EVs segment, it is undeniable that Tesla is at the forefront of this secular transition towards more sustainable means of transportation.Considering Tesla’s brand recognition and superior features of its electric vehicles, we expect Tesla to achieve a 4.5% by 2033, becoming the third-largest automaker, with revenues from the automotive segment projected to reach $273.5 billion, representing an increase of 3 times from the 2023 revenues of $90.7 billion at a CAGR of 11.7%.Source - BlackNote InvestmentAssuming the average selling price of its vehicles remains around $50k – for the sake of simplicity – it would translate into 5.6 billion vehicles sold by 2033.Briefly dwelling on the solar and energy storage segment, revenues are expected to improve from $6 billion in 2023 to $35.4 billion by 2033, as Tesla improve its market share in the renewable energy industry from 1% to 3.8%.Therefore, assuming Tesla will remain only the excellent automaker it already is, its total revenues are projected to reach $308.9 billion by 2033, representing an increase of 3.2 times from the 2023 revenues of $96.7 billion at a CAGR of 12.3%.Tesla Tech Company Growth ForecastsNow, projecting Tesla revenues in the scenario where it becomes a full-fledged technology hardware company, here is an extract from the 2020 Q4 earnings call that displays perfectly how Tesla’s investments in new technologies are expected to play out in the future:If Tesla ships, let's say, hypothetically, $50 billion worth of vehicles and those vehicles become Full Self-Driving and can be used as robotaxis, the utility increases from an average of 12 hours a week to potentially an average of 60 hours a week if they're capable of serving as robotaxi. So that's like roughly a 5x increase in utility…But let's just assume that the car becomes twice as useful, that would be a doubling again of the revenue of the company, which is almost entirely gross margin. So it will be like having $50 million of incremental profit basically from that because of the software.The key concept here is the vehicles' increased utility due to the new technologies implemented by Tesla.The primary usage derived from increased utility would be the long-awaited robotaxis services, but the management also expressed their interest in being able to remotely use the advanced AI chips needed to operate FSD capabilities for computational needs when the cars are not used for transportation needs.However, as said at the very beginning, our valuation won’t be a thorough analysis of Tesla’s tech. Hence, we will just assess how the assumption of increased vehicle utility will play on Tesla's ability to generate revenues.Assuming Tesla will eventually double the utility of each EV sold, we assumed that starting from 2026 the firm will start to recognize revenues from its technological solutions business line, and from 2026 to 2033 the segment revenues will grow from 5% to 50% of total revenues.Source - BlackNote InvestmentWe are aware that this particular assumption is totally arbitrary and subjective, however, we think it is a plausible pathway towards the management goal of doubling vehicles' utility in the next 10 years.Therefore, assuming Tesla will evolve into a technology hardware company, its total revenues are projected to reach $617.9 billion by 2033, representing an increase of 6.4 times from the 2023 revenues of $96.7 billion at a CAGR of 20.4%.Tesla Auto Company ProfitabilityMoving on to projecting profitability, as said previously, even if Tesla remains only an automaker, its business model already benefits from all the tech developed by the firm, granting it better profitability than the average company in the automobile industry.For such reason, even in the scenario of Tesla the auto company, we still expect the firm to achieve an operating margin in line with the median operating margin of the technology hardware industry equal to 12.1% by 2033.Tesla Tech Company ProfitabilityAs regards the scenario in which Tesla evolves to be a full-fledged technology hardware company, starting from the 12.1% operating margin expected for the automotive segment, we assumed the technology solutions segment to achieve profitability levels on par with software companies.It might seem – and probably is – an aggressive assumption to make, however, sticking with management’s expectations of doubling vehicles' utility, the extra revenues derived by the increased utility, are likely to be generated with little marginal costs on top of the already expensed R&D costs incurred to develop new technologies and vehicles.The software industry boasts a 10-year median operating margin of 22.3% and a 10-year median FCF margin of 10.7%.By 2033, given our assumption the technology solutions segment accounts for 50% of revenues, the average operating margin for Tesla in the scenario it generates revenues as a technology hardware company is expected to be 17.2%.Reinvestment NeedsIn both scenarios, we expected Tesla to maintain a reinvestment margin in line with the automobile industry average, equal to 4.5%, whether it remains an auto company or evolves into a tech company.Despite the future of the company, it is undeniable that Tesla has to keep investing in the development of new vehicles and in maintaining and improving factory capacity, as without selling the hardware in the first place, it cannot capitalize on its tech.Tesla Auto Company Future Cash FlowsSynthesizing all underlying assumptions in the scenario where remains an excellent EVs maker – $308.9 billion in revenues by 2033, 12.1% operating margin, and reinvestment margin of around 4.5% - Tesla's free cash flows to the firm are anticipated to swell to $14.5 billion by 2033, equal to a FCFF margin of 4.7%.1st scenario (Source - BlackNote Investment)Tesla Tech Company Future Cash FlowsSynthesizing all underlying assumptions in the scenario where evolve into a technology hardware company – $617.9 billion in revenues by 2033, 17.2% operating margin, and reinvestment margin of around 4.5% - Tesla's free cash flows to the firm are anticipated to swell to $53.2 billion by 2033, equal to a FCFF margin of 8.6%.2nd scenario (Source - BlackNote Investment)Company ValuationIn the first scenario, we apply a discount rate of 7.8% for the next 10 years, and a discount rate of 7.3% in perpetuity, while in the second scenario, we start with a discount rate of 7.8%, but we gradually adjust it to 7.3% as also the company risk profile changes as the firm evolves from an auto company to a technology hardware companyWith these assumptions, we obtain that the present value of these cash flows – after adjusting for debt and cash on hand – is equal to $310.2 billion or $97.3 per share, in the auto company scenario, and $1.01 trillion or $317.2 per share, in the tech company scenario.Compared to the current prices, in the first scenario, Tesla stock is overvalued by 53.7% - negative alpha of (9.3)% - while in the second scenario, Tesla’s stock is undervalued by 51.1% - positive alpha of 3%.1st scenario (Source - BlackNote Investment)2nd scenario (Source - BlackNote Investment)However, given the number of assumptions made throughout the valuations, especially as regards the scenario seeing Tesla becoming a full-fledged technology company, it would be more realistic to assume that the truth lies somewhere in between.Assigning a likelihood of 50% to both scenarios – again for the sake of simplicity – results that the intrinsic value of Tesla is equal to $670.6 billion or $210 per share, making Tesla’s stocks fairly valued at current prices.The Street target for Tesla – based on 42 different analyst expectations – is sitting at $183 per share, as of the 1st of July 2024, with a high of $310 and a low of $85, and 21 Street recommendations expressing the rating “Hold.”Discount RateTo determine the appropriate discount rate, we employ the WACC method, which considers both the cost of equity and the cost of debt.The cost of equity – 7.8% for the auto company and 7.3% for the tech company – is derived using the USA equity risk premium of 4.6% – as of June 2024 – the current USD risk-free rate of 4.2%, and the company's beta of 0.79, for the auto company, and 0.7, for the tech company. The auto company's beta is based on the automobile industry’s unlevered beta of 0.65, while the tech company's beta is based on the technology hardware industry’s unlevered beta of 0.57.The cost of debt – 4.9% – represents the expected return demanded by debt holders and is influenced by the company's specific risk profile and the broader market conditions. It is computed considering the current USD risk-free rate of 4.2%, the company's default spread of 0.7%, and the USA default spread of 0%.With a current Equity to Enterprise Value of 98.8% and a Debt to Enterprise Value of 1.2%, Tesla’s discount rate for the next 10 years is 7.8%, in the auto company scenario, and 7.4%, in the tech company ones.As Tesla enters the steady state, both the company’s beta and company default spread are expected to approach the industry’s median values of 0.82 and 0.7%, respectively for the auto company, and 0.71 and 0.9%, respectively for the tech company.Mature companies often have more predictable cash flows and may change their financing strategies. We anticipate Tesla to adjust its Equity to Enterprise Value and Debt to Enterprise Value towards the industry median of 83.4% and 16.6%, respectively for the auto company, and 89.5% and 10.5%, respectively for the tech company, reflecting a more typical capital structure for a stable company.With these assumptions, the discount rate used to discount the cash flows in perpetuity is 7.3% in the auto company scenario, and 7.2% in the tech company scenario.ConclusionIn conclusion, Tesla’s valuation is highly influenced by how investors see the firm, whether as an automaker or as a technology company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.Regardless of how pessimistic investors' assumptions are, it is undeniable that Tesla is not a simple automaker, and even in the auto company scenario, it should be treated – at least from a profitability and cash flow perspective – as a company with strong similarity to the tech sector.In conclusion, our assumptions suggest that Tesla’s intrinsic value lies above the $210 per share assumed in the blended scenario and that at current prices, Tesla's risk-reward profile has the potential to generate a positive return to its shareholders, representing a good investment opportunity.","news_type":1},"isVote":1,"tweetType":1,"viewCount":1,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":323462232494272,"gmtCreate":1719984217428,"gmtModify":1719984219524,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/323462232494272","repostId":"1169546972","repostType":2,"repost":{"id":"1169546972","weMediaInfo":{"introduction":"Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals","home_visible":0,"media_name":"Benzinga","id":"1052270027","head_image":"https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa"},"pubTimestamp":1719978979,"share":"https://www.laohu8.com/m/news/1169546972?lang=&edition=full","pubTime":"2024-07-03 11:56","market":"us","language":"en","title":"Elon Musk Warns Tesla Short Sellers, Including Bill Gates, That They Will Be Obliterated","url":"https://stock-news.laohu8.com/highlight/detail?id=1169546972","media":"Benzinga","summary":"Future Fund Managing Partner Gary Black has issued a stark warning to those betting against $Tesla Inc.(TSLA)$ stock.What Happened: Black took to X to express his views on Tesla’s future, emphasizing ","content":"<html><head></head><body><p>Future Fund Managing Partner Gary Black has issued a stark warning to those betting against <a href=\"https://laohu8.com/S/TSLA\">Tesla Inc.</a> stock.</p><p style=\"text-align: start;\"><strong>What Happened</strong>: Black took to X to express his views on Tesla’s future, emphasizing the potential of the electric vehicle market and Tesla’s position within it. He predicted a significant increase in Tesla’s Total Addressable Market with the launch of a $25,000 vehicle in 2025 and the potential of Tesla’s autonomous driving technology to be worth $5 trillion.</p><p style=\"text-align: start;\">“Anyone short $TSLA needs to have their head examined.” Black wrote.</p><p>Black also mentioned Elon Musk‘s plans to use the knowledge gained from Tesla’s Robotaxi project to launch Optimus robots, which could potentially give Tesla a market cap of $20-$25 trillion.</p><p style=\"text-align: start;\">Black quoted Musk’s post, where the Tesla CEO warned that once Tesla solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated, “Even Gates.”</p><p>Musk’s tweet was in reference to one of the most famous Tesla short sellers, <strong>Microsoft</strong> co-founder <strong>Bill Gates</strong>.</p><p style=\"text-align: start;\"><strong>Why It Matters</strong>: Black’s comments come at a time when Tesla’s stock is on the rise. The company’s second-quarter deliveries report ignited a stock rally, with the stock hitting resistance levels that had previously been a peak. This led to speculation about how far the rally would go.</p><p style=\"text-align: start;\">Despite being a popular stock to short, Tesla’s stock has been performing well, <strong>Wedbush</strong> analyst <strong>Dan Ives</strong> raised Tesla’s price target to $300, citing the company’s AI potential, which he believes could be worth over $1 trillion. This reflects a significant increase from the previous target of $275.</p><p style=\"text-align: start;\"><strong>Price Action</strong>: Tesla Inc. shares closed at $231.26 on Tuesday, up $21.40 or 10.20% for the day. In after-hours trading, the stock dipped 0.035%. Year to date, Tesla&#39;s stock has decreased by 6.91%, according to data from Benzinga Pro.</p></body></html>","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>Elon Musk Warns Tesla Short Sellers, Including Bill Gates, That They Will Be Obliterated</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\">\nElon Musk Warns Tesla Short Sellers, Including Bill Gates, That They Will Be Obliterated\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Benzinga </p>\n<p class=\"h-time\">2024-07-03 11:56</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Future Fund Managing Partner Gary Black has issued a stark warning to those betting against <a href=\"https://laohu8.com/S/TSLA\">Tesla Inc.</a> stock.</p><p style=\"text-align: start;\"><strong>What Happened</strong>: Black took to X to express his views on Tesla’s future, emphasizing the potential of the electric vehicle market and Tesla’s position within it. He predicted a significant increase in Tesla’s Total Addressable Market with the launch of a $25,000 vehicle in 2025 and the potential of Tesla’s autonomous driving technology to be worth $5 trillion.</p><p style=\"text-align: start;\">“Anyone short $TSLA needs to have their head examined.” Black wrote.</p><p>Black also mentioned Elon Musk‘s plans to use the knowledge gained from Tesla’s Robotaxi project to launch Optimus robots, which could potentially give Tesla a market cap of $20-$25 trillion.</p><p style=\"text-align: start;\">Black quoted Musk’s post, where the Tesla CEO warned that once Tesla solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated, “Even Gates.”</p><p>Musk’s tweet was in reference to one of the most famous Tesla short sellers, <strong>Microsoft</strong> co-founder <strong>Bill Gates</strong>.</p><p style=\"text-align: start;\"><strong>Why It Matters</strong>: Black’s comments come at a time when Tesla’s stock is on the rise. The company’s second-quarter deliveries report ignited a stock rally, with the stock hitting resistance levels that had previously been a peak. This led to speculation about how far the rally would go.</p><p style=\"text-align: start;\">Despite being a popular stock to short, Tesla’s stock has been performing well, <strong>Wedbush</strong> analyst <strong>Dan Ives</strong> raised Tesla’s price target to $300, citing the company’s AI potential, which he believes could be worth over $1 trillion. This reflects a significant increase from the previous target of $275.</p><p style=\"text-align: start;\"><strong>Price Action</strong>: Tesla Inc. shares closed at $231.26 on Tuesday, up $21.40 or 10.20% for the day. In after-hours trading, the stock dipped 0.035%. Year to date, Tesla&#39;s stock has decreased by 6.91%, according to data from Benzinga Pro.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1169546972","content_text":"Future Fund Managing Partner Gary Black has issued a stark warning to those betting against Tesla Inc. stock.What Happened: Black took to X to express his views on Tesla’s future, emphasizing the potential of the electric vehicle market and Tesla’s position within it. He predicted a significant increase in Tesla’s Total Addressable Market with the launch of a $25,000 vehicle in 2025 and the potential of Tesla’s autonomous driving technology to be worth $5 trillion.“Anyone short $TSLA needs to have their head examined.” Black wrote.Black also mentioned Elon Musk‘s plans to use the knowledge gained from Tesla’s Robotaxi project to launch Optimus robots, which could potentially give Tesla a market cap of $20-$25 trillion.Black quoted Musk’s post, where the Tesla CEO warned that once Tesla solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated, “Even Gates.”Musk’s tweet was in reference to one of the most famous Tesla short sellers, Microsoft co-founder Bill Gates.Why It Matters: Black’s comments come at a time when Tesla’s stock is on the rise. The company’s second-quarter deliveries report ignited a stock rally, with the stock hitting resistance levels that had previously been a peak. This led to speculation about how far the rally would go.Despite being a popular stock to short, Tesla’s stock has been performing well, Wedbush analyst Dan Ives raised Tesla’s price target to $300, citing the company’s AI potential, which he believes could be worth over $1 trillion. This reflects a significant increase from the previous target of $275.Price Action: Tesla Inc. shares closed at $231.26 on Tuesday, up $21.40 or 10.20% for the day. In after-hours trading, the stock dipped 0.035%. Year to date, Tesla's stock has decreased by 6.91%, according to data from Benzinga Pro.","news_type":1},"isVote":1,"tweetType":1,"viewCount":13,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322734345183320,"gmtCreate":1719822799589,"gmtModify":1719825463010,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=0b52158a269dd8d34bf892864a208599&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=0b52158a269dd8d34bf892864a208599&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322734345183320","isVote":1,"tweetType":1,"viewCount":8,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322653211349064,"gmtCreate":1719803116378,"gmtModify":1719803119848,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322653211349064","repostId":"2447684671","repostType":2,"repost":{"id":"2447684671","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1719801597,"share":"https://www.laohu8.com/m/news/2447684671?lang=&edition=full","pubTime":"2024-07-01 10:39","market":"hk","language":"en","title":"Amazon, Built by Retail, Invests in Its AI Future","url":"https://stock-news.laohu8.com/highlight/detail?id=2447684671","media":"Dow Jones","summary":"Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.Amazon is planning to spend more than $100 billion over the next decade on data centers, an impressive level of investment even for a company known for its spending ways. The Seattle company is now devoting more investment money to its cloud computing and AI infrastructure than to its sprawling network of e-commerce warehouses.Amazon's spending on data-center capital expenses, including leases, compared with total capital expenditures hit a decade-high last year of 53%, according to market-research firm Dell'Oro Group. Amazon said it expects AWS infrastructure spending to remain high this year, and the company has announced many AWS investments in recent months.Amazon's shift represents the changing needs of a company that, despite having the world's leading cloud-co","content":"<html><head></head><body><p>Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.</p><p>Amazon is planning to spend more than $100 billion over the next decade on data centers, an impressive level of investment even for a company known for its spending ways. The Seattle company is now devoting more investment money to its cloud computing and AI infrastructure than to its sprawling network of e-commerce warehouses.</p><p>Amazon Web Services, the arm that manages Amazon&#39;s cloud business, has opened data centers for years, but executives said there is a surge in investment now to meet demand triggered by the excitement around AI.</p><p>&#34;We have to dive in. We have to figure it out,&#34; said John Felton, who took over as AWS&#39;s chief financial officer this year after spending most of his career in Amazon&#39;s retail fulfillment operations.</p><p>The company&#39;s financial commitment reflects the importance and high costs of AI. Felton said building for AI today feels like building that massive delivery network in years past. &#34;It&#39;s a little uncertain,&#34; he said. AWS is expanding in Virginia, Ohio and elsewhere.</p><p>The company&#39;s overall capital expenditures decreased last year primarily because it reined in fulfillment and transportation spending, but the share of that spending on infrastructure mostly for AWS has surged. The increase represents a new era of expansion for Amazon, in which investing in cutting-edge cloud equipment is more critical to its growth than developing its network of retail warehouses.</p><p>Amazon&#39;s spending on data-center capital expenses, including leases, compared with total capital expenditures hit a decade-high last year of 53%, according to market-research firm Dell&#39;Oro Group. Amazon said it expects AWS infrastructure spending to remain high this year, and the company has announced many AWS investments in recent months.</p><p>Amazon&#39;s cloud business has long been the company&#39;s profit engine, and AI is expected to catapult demand for cloud computing to new heights. Executives are aiming to take advantage of the AI boom, which relies on cloud services because of the intensive computing resources required. Amazon expects tens of billions of dollars in revenue from AI in the next several years.</p><p>&#34;We&#39;re just keeping our heads down and focusing on delivering that capacity right now,&#34; said Kevin Miller, AWS vice president of global data centers.</p><p>Amazon&#39;s shift represents the changing needs of a company that, despite having the world&#39;s leading cloud-computing business and years of experimenting with AI, is seen by some experts as trailing in AI behind its big tech peers. Amazon has said it isn&#39;t falling behind others in AI and its AI capabilities at AWS have been well-received by customers.</p><p>Amazon has a long history of spending big to stay ahead. It had years of heavy capital investment in its delivery infrastructure to establish its e-commerce dominance and then to meet explosive demand during the Covid-19 pandemic.</p><p>That heavy investment contributed to Amazon this past week becoming the fifth-ever U.S. company to reach the milestone of $2 trillion in market value. The stock closed Friday at $193.25, valuing the company at $2.011 trillion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/25e1dcc86d6fdac623b66675c5970dc0\" tg-width=\"588\" tg-height=\"423\"/></p><p>Amazon&#39;s increased focus on data centers is also reflected in the company&#39;s senior leadership, which has increasingly become stocked with people with connections to the cloud business. Andy Jassy served as the AWS chief executive for more than two decades before becoming Amazon&#39;s chief executive in 2021.</p><p>&#34;There is a natural tendency to invest more in AWS and technology for the folks left behind because that&#39;s what they grew and built,&#34; said Cayce Roy, chief executive at e-commerce fulfillment company Standvast and a former vice president at Amazon.</p><p>Amazon plans to add at least 216 new data-center buildings in the next several years, said Marc Wulfraat, president at logistics consultant MWPVL International. Amazon&#39;s retail capital expenditures probably won&#39;t grow much through 2025, he said, in part because Amazon has extra capacity in that segment after overbuilding during the pandemic.</p><p>With high demand for AI infrastructure, Amazon and other tech companies have struggled to get the parts, property and power that data centers with supercomputers require. Amazon and other big tech companies have sought nuclear power to feed their energy needs. The company&#39;s fulfillment build-out took many years to accomplish and didn&#39;t require the same technical equipment that data centers do.</p><p>Jassy has reoriented Amazon to focus on AI products throughout its various businesses. He has said generative AI could be a critical element of its next pillar of growth in addition to its online retail business, Amazon Prime and AWS.</p><p>In May, the company named Matt Garman, a veteran executive with a strong engineering background, as the new AWS CEO, as it moves to better capitalize on AI.</p><p>Amazon is still by far the biggest online retailer in the U.S., and its recent financials have shown that it is in as strong a position as ever. The company continues to invest in its retail arm and open new delivery facilities. It has expanded its shipping capabilities to reach more Americans faster as it has faced competition from newer e-commerce entrants.</p><p>But now it is also time to invest in the AI opportunity, Felton said</p><p>&#34;It&#39;s a fascinating time to be here and think about how we can really think differently about how cloud computing works and how we can think differently about serving customers in the world of GenAI,&#34; he said, referring to generative artificial intelligence.</p></body></html>","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>Amazon, Built by Retail, Invests in Its AI Future</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\">\nAmazon, Built by Retail, Invests in Its AI Future\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-01 10:39</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.</p><p>Amazon is planning to spend more than $100 billion over the next decade on data centers, an impressive level of investment even for a company known for its spending ways. The Seattle company is now devoting more investment money to its cloud computing and AI infrastructure than to its sprawling network of e-commerce warehouses.</p><p>Amazon Web Services, the arm that manages Amazon&#39;s cloud business, has opened data centers for years, but executives said there is a surge in investment now to meet demand triggered by the excitement around AI.</p><p>&#34;We have to dive in. We have to figure it out,&#34; said John Felton, who took over as AWS&#39;s chief financial officer this year after spending most of his career in Amazon&#39;s retail fulfillment operations.</p><p>The company&#39;s financial commitment reflects the importance and high costs of AI. Felton said building for AI today feels like building that massive delivery network in years past. &#34;It&#39;s a little uncertain,&#34; he said. AWS is expanding in Virginia, Ohio and elsewhere.</p><p>The company&#39;s overall capital expenditures decreased last year primarily because it reined in fulfillment and transportation spending, but the share of that spending on infrastructure mostly for AWS has surged. The increase represents a new era of expansion for Amazon, in which investing in cutting-edge cloud equipment is more critical to its growth than developing its network of retail warehouses.</p><p>Amazon&#39;s spending on data-center capital expenses, including leases, compared with total capital expenditures hit a decade-high last year of 53%, according to market-research firm Dell&#39;Oro Group. Amazon said it expects AWS infrastructure spending to remain high this year, and the company has announced many AWS investments in recent months.</p><p>Amazon&#39;s cloud business has long been the company&#39;s profit engine, and AI is expected to catapult demand for cloud computing to new heights. Executives are aiming to take advantage of the AI boom, which relies on cloud services because of the intensive computing resources required. Amazon expects tens of billions of dollars in revenue from AI in the next several years.</p><p>&#34;We&#39;re just keeping our heads down and focusing on delivering that capacity right now,&#34; said Kevin Miller, AWS vice president of global data centers.</p><p>Amazon&#39;s shift represents the changing needs of a company that, despite having the world&#39;s leading cloud-computing business and years of experimenting with AI, is seen by some experts as trailing in AI behind its big tech peers. Amazon has said it isn&#39;t falling behind others in AI and its AI capabilities at AWS have been well-received by customers.</p><p>Amazon has a long history of spending big to stay ahead. It had years of heavy capital investment in its delivery infrastructure to establish its e-commerce dominance and then to meet explosive demand during the Covid-19 pandemic.</p><p>That heavy investment contributed to Amazon this past week becoming the fifth-ever U.S. company to reach the milestone of $2 trillion in market value. The stock closed Friday at $193.25, valuing the company at $2.011 trillion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/25e1dcc86d6fdac623b66675c5970dc0\" tg-width=\"588\" tg-height=\"423\"/></p><p>Amazon&#39;s increased focus on data centers is also reflected in the company&#39;s senior leadership, which has increasingly become stocked with people with connections to the cloud business. Andy Jassy served as the AWS chief executive for more than two decades before becoming Amazon&#39;s chief executive in 2021.</p><p>&#34;There is a natural tendency to invest more in AWS and technology for the folks left behind because that&#39;s what they grew and built,&#34; said Cayce Roy, chief executive at e-commerce fulfillment company Standvast and a former vice president at Amazon.</p><p>Amazon plans to add at least 216 new data-center buildings in the next several years, said Marc Wulfraat, president at logistics consultant MWPVL International. Amazon&#39;s retail capital expenditures probably won&#39;t grow much through 2025, he said, in part because Amazon has extra capacity in that segment after overbuilding during the pandemic.</p><p>With high demand for AI infrastructure, Amazon and other tech companies have struggled to get the parts, property and power that data centers with supercomputers require. Amazon and other big tech companies have sought nuclear power to feed their energy needs. The company&#39;s fulfillment build-out took many years to accomplish and didn&#39;t require the same technical equipment that data centers do.</p><p>Jassy has reoriented Amazon to focus on AI products throughout its various businesses. He has said generative AI could be a critical element of its next pillar of growth in addition to its online retail business, Amazon Prime and AWS.</p><p>In May, the company named Matt Garman, a veteran executive with a strong engineering background, as the new AWS CEO, as it moves to better capitalize on AI.</p><p>Amazon is still by far the biggest online retailer in the U.S., and its recent financials have shown that it is in as strong a position as ever. The company continues to invest in its retail arm and open new delivery facilities. It has expanded its shipping capabilities to reach more Americans faster as it has faced competition from newer e-commerce entrants.</p><p>But now it is also time to invest in the AI opportunity, Felton said</p><p>&#34;It&#39;s a fascinating time to be here and think about how we can really think differently about how cloud computing works and how we can think differently about serving customers in the world of GenAI,&#34; he said, referring to generative artificial intelligence.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","BK4592":"伊斯兰概念","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","BK4507":"流媒体概念","BK4585":"ETF&股票定投概念","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4534":"瑞士信贷持仓","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H","BK4566":"资本集团","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","BK4220":"综合零售","BK4527":"明星科技股","BK4538":"云计算","BK4559":"巴菲特持仓","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","AMZN":"亚马逊","BK4579":"人工智能","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4588":"碎股","LU0238689110.USD":"贝莱德环球动力股票基金","LU0234570918.USD":"高盛全球核心股票组合Acc Close","BK4550":"红杉资本持仓","BK4503":"景林资产持仓","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU0072462426.USD":"贝莱德全球配置 A2","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4122":"互联网与直销零售","LU0079474960.USD":"联博美国增长基金A","LU0082616367.USD":"摩根大通美国科技A（dist）","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4551":"寇图资本持仓","LU0056508442.USD":"贝莱德世界科技基金A2","BK4561":"索罗斯持仓","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4581":"高盛持仓","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0109392836.USD":"富兰克林科技股A"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2447684671","content_text":"Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.Amazon is planning to spend more than $100 billion over the next decade on data centers, an impressive level of investment even for a company known for its spending ways. The Seattle company is now devoting more investment money to its cloud computing and AI infrastructure than to its sprawling network of e-commerce warehouses.Amazon Web Services, the arm that manages Amazon's cloud business, has opened data centers for years, but executives said there is a surge in investment now to meet demand triggered by the excitement around AI.\"We have to dive in. We have to figure it out,\" said John Felton, who took over as AWS's chief financial officer this year after spending most of his career in Amazon's retail fulfillment operations.The company's financial commitment reflects the importance and high costs of AI. Felton said building for AI today feels like building that massive delivery network in years past. \"It's a little uncertain,\" he said. AWS is expanding in Virginia, Ohio and elsewhere.The company's overall capital expenditures decreased last year primarily because it reined in fulfillment and transportation spending, but the share of that spending on infrastructure mostly for AWS has surged. The increase represents a new era of expansion for Amazon, in which investing in cutting-edge cloud equipment is more critical to its growth than developing its network of retail warehouses.Amazon's spending on data-center capital expenses, including leases, compared with total capital expenditures hit a decade-high last year of 53%, according to market-research firm Dell'Oro Group. Amazon said it expects AWS infrastructure spending to remain high this year, and the company has announced many AWS investments in recent months.Amazon's cloud business has long been the company's profit engine, and AI is expected to catapult demand for cloud computing to new heights. Executives are aiming to take advantage of the AI boom, which relies on cloud services because of the intensive computing resources required. Amazon expects tens of billions of dollars in revenue from AI in the next several years.\"We're just keeping our heads down and focusing on delivering that capacity right now,\" said Kevin Miller, AWS vice president of global data centers.Amazon's shift represents the changing needs of a company that, despite having the world's leading cloud-computing business and years of experimenting with AI, is seen by some experts as trailing in AI behind its big tech peers. Amazon has said it isn't falling behind others in AI and its AI capabilities at AWS have been well-received by customers.Amazon has a long history of spending big to stay ahead. It had years of heavy capital investment in its delivery infrastructure to establish its e-commerce dominance and then to meet explosive demand during the Covid-19 pandemic.That heavy investment contributed to Amazon this past week becoming the fifth-ever U.S. company to reach the milestone of $2 trillion in market value. The stock closed Friday at $193.25, valuing the company at $2.011 trillion.Amazon's increased focus on data centers is also reflected in the company's senior leadership, which has increasingly become stocked with people with connections to the cloud business. Andy Jassy served as the AWS chief executive for more than two decades before becoming Amazon's chief executive in 2021.\"There is a natural tendency to invest more in AWS and technology for the folks left behind because that's what they grew and built,\" said Cayce Roy, chief executive at e-commerce fulfillment company Standvast and a former vice president at Amazon.Amazon plans to add at least 216 new data-center buildings in the next several years, said Marc Wulfraat, president at logistics consultant MWPVL International. Amazon's retail capital expenditures probably won't grow much through 2025, he said, in part because Amazon has extra capacity in that segment after overbuilding during the pandemic.With high demand for AI infrastructure, Amazon and other tech companies have struggled to get the parts, property and power that data centers with supercomputers require. Amazon and other big tech companies have sought nuclear power to feed their energy needs. The company's fulfillment build-out took many years to accomplish and didn't require the same technical equipment that data centers do.Jassy has reoriented Amazon to focus on AI products throughout its various businesses. He has said generative AI could be a critical element of its next pillar of growth in addition to its online retail business, Amazon Prime and AWS.In May, the company named Matt Garman, a veteran executive with a strong engineering background, as the new AWS CEO, as it moves to better capitalize on AI.Amazon is still by far the biggest online retailer in the U.S., and its recent financials have shown that it is in as strong a position as ever. The company continues to invest in its retail arm and open new delivery facilities. It has expanded its shipping capabilities to reach more Americans faster as it has faced competition from newer e-commerce entrants.But now it is also time to invest in the AI opportunity, Felton said\"It's a fascinating time to be here and think about how we can really think differently about how cloud computing works and how we can think differently about serving customers in the world of GenAI,\" he said, referring to generative artificial intelligence.","news_type":1},"isVote":1,"tweetType":1,"viewCount":32,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322495738863744,"gmtCreate":1719765013241,"gmtModify":1719797124121,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"Guess the winner，Earn Tiger Coins","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/trading-guess?inviteId=IJXETRSD&amp;banner=0&amp;adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=f46a08b7be6e526e19b7dc0625f309cc&amp;invite=2ABUKH&amp;lang=en_US\">Guess the winner，Earn Tiger Coins</a> Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/trading-guess?inviteId=IJXETRSD&amp;banner=0&amp;adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=f46a08b7be6e526e19b7dc0625f309cc&amp;invite=2ABUKH&amp;lang=en_US\">Guess the winner，Earn Tiger Coins</a> Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.","text":"Find out more here: Guess the winner，Earn Tiger Coins Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.","images":[{"img":"https://static.tigerbbs.com/f5b7f90833b0728cadecb5cb81220f1d"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322495738863744","isVote":1,"tweetType":1,"viewCount":82,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":322413704847440,"gmtCreate":1719744759236,"gmtModify":1719745039959,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=c6842e926ad98538527a9f626eff40ea&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=c6842e926ad98538527a9f626eff40ea&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322413704847440","isVote":1,"tweetType":1,"viewCount":29,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322413858414696,"gmtCreate":1719744681803,"gmtModify":1719745039907,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=b3d8b17fee7ab74a22b961a59d2aa61d&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=b3d8b17fee7ab74a22b961a59d2aa61d&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322413858414696","isVote":1,"tweetType":1,"viewCount":64,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322412801036488,"gmtCreate":1719744550196,"gmtModify":1719745039885,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=9c0edb9f8d5e1fc2619c52ff3ff3ca10&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=9c0edb9f8d5e1fc2619c52ff3ff3ca10&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322412801036488","isVote":1,"tweetType":1,"viewCount":41,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322413643362488,"gmtCreate":1719744511778,"gmtModify":1719745039985,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=460afd6e0ad95a12098f23e802107a2e&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=460afd6e0ad95a12098f23e802107a2e&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322413643362488","isVote":1,"tweetType":1,"viewCount":22,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322337533747272,"gmtCreate":1719726046651,"gmtModify":1719726049693,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322337533747272","repostId":"2447641605","repostType":2,"repost":{"id":"2447641605","pubTimestamp":1719719092,"share":"https://www.laohu8.com/m/news/2447641605?lang=&edition=full","pubTime":"2024-06-30 11:44","market":"us","language":"en","title":"Where Will Tesla Be in 10 Years?","url":"https://stock-news.laohu8.com/highlight/detail?id=2447641605","media":"Motley Fool","summary":"Past returns aren't likely to repeat.","content":"<html><head></head><body><ul style=\"\"><li><p>There&#39;s a high probably that Tesla will still derive the bulk of its revenue from selling EVs.</p></li><li><p>Bullish investors hope the company can one day launch a robotaxi service, which could boost the stock price.</p></li><li><p>Based on the current state of affairs, this appears to be an overvalued business.</p></li></ul><p>As a major disruptor to the worldwide auto industry, <a href=\"https://laohu8.com/S/TSLA\">Tesla</a> has certainly gotten its fair share of attention. CEO Elon Musk seems to always have the spotlight on him. And he&#39;s viewed by many as a great visionary.</p><p>It&#39;s not surprising that if a business has this type of introduction, its shares have performed well. Since June 2014, this top electric vehicle (EV) stock has skyrocketed 1,050%, crushing the gain of the Nasdaq Composite Index. But it&#39;s been a difficult ride more recently, with shares trading 56% off their all-time high.</p><p>Bullish investors are probably thinking about buying the dip today. Before doing so, let&#39;s consider where Tesla could be in 10 years.</p><h2 id=\"id_3650979017\">It&#39;s all about cars</h2><p>In 2023, the company generated $97 billion in revenue, of which 85% came from selling automobiles. Right now, Tesla has five models in its lineup of vehicles, and there is talk of expanding that selection.</p><p>Throughout its history, this has been a car company. And I think there&#39;s a very good chance that a decade from now, Tesla will still be designing, manufacturing, and selling passenger vehicles to consumers across the world -- exactly what it does today.</p><p>Don&#39;t be surprised if the vast majority of its revenue is derived from EVs in 2034. The issue, though, is that growth is undoubtedly going to slow, as has already happened. Intense competition and macro headwinds have forced Tesla to lower prices in order to drive demand. This situation tells me that growth over the next decade isn&#39;t going to come anywhere near the gains posted in the past 10 years.</p><h2 id=\"id_3602858525\">A different enterprise</h2><p>But there are some Tesla supporters, like Cathie Wood, who believe the company is going to completely transform itself in the years ahead. ARK Invest, the asset management firm that Wood heads up, puts out thoughtful research. But its projections can make you scratch your head. They are incredibly ambition targets.</p><p>For example, one of Wood&#39;s well-publicized predictions is that by 2030, there will be a global robotaxi industry that generates $8 trillion to $10 trillion in annual revenue. Think of the rides that Uber or Lyft offer, but without a driver.</p><p>Given Tesla&#39;s huge focus on artificial intelligence, Wood and her team think fully autonomous driving is going to become a reality. And they estimate half of that industry&#39;s multitrillion-dollar opportunity will go to platforms like Tesla&#39;s.</p><p>Now, I have absolutely no clue whether or not Tesla can introduce a global fleet of robotaxis one day. Furthermore, the timeline is anyone&#39;s guess.</p><p>I do believe it&#39;s valuable to assess the facts in front of us. We know that Musk has pushed back the introduction of this revolutionary technology on numerous occasions. This can cause investors to question if it&#39;s even possible, given the technical challenges and the roadblocks in gaining regulatory approvals and human trust.</p><p>Should this end up happening, though, I can see Tesla&#39;s stock price soaring. But in my opinion, the probability is low.</p><h2 id=\"id_1806935240\">Should you buy Tesla stock?</h2><p>A convincing argument can be made that this business, which carries a market cap of $572 billion, is still overvalued. And this is even with the shares undergoing a major downswing in recent years.</p><p>This leads us back to the original question of where Tesla will be 10 years from now. Based on the stock&#39;s expensive valuation -- a price-to-earnings ratio of 46.5 -- I believe investors who buy shares today will likely be disappointed with their returns over the next decade.</p></body></html>","source":"fool_stock","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>Where Will Tesla Be in 10 Years?</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\">\nWhere Will Tesla Be in 10 Years?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-30 11:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/06/29/where-will-tesla-be-in-10-years/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>There's a high probably that Tesla will still derive the bulk of its revenue from selling EVs.Bullish investors hope the company can one day launch a robotaxi service, which could boost the stock ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/06/29/where-will-tesla-be-in-10-years/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU0234570918.USD":"高盛全球核心股票组合Acc Close","SG9999015952.SGD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (SGD) ACC","BK4551":"寇图资本持仓","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","BK4574":"无人驾驶","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","TSLA":"特斯拉","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","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","BK4511":"特斯拉概念","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU2063271972.USD":"富兰克林创新领域基金","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","BK4527":"明星科技股","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","BK4592":"伊斯兰概念","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4555":"新能源车","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","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","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A"},"source_url":"https://www.fool.com/investing/2024/06/29/where-will-tesla-be-in-10-years/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2447641605","content_text":"There's a high probably that Tesla will still derive the bulk of its revenue from selling EVs.Bullish investors hope the company can one day launch a robotaxi service, which could boost the stock price.Based on the current state of affairs, this appears to be an overvalued business.As a major disruptor to the worldwide auto industry, Tesla has certainly gotten its fair share of attention. CEO Elon Musk seems to always have the spotlight on him. And he's viewed by many as a great visionary.It's not surprising that if a business has this type of introduction, its shares have performed well. Since June 2014, this top electric vehicle (EV) stock has skyrocketed 1,050%, crushing the gain of the Nasdaq Composite Index. But it's been a difficult ride more recently, with shares trading 56% off their all-time high.Bullish investors are probably thinking about buying the dip today. Before doing so, let's consider where Tesla could be in 10 years.It's all about carsIn 2023, the company generated $97 billion in revenue, of which 85% came from selling automobiles. Right now, Tesla has five models in its lineup of vehicles, and there is talk of expanding that selection.Throughout its history, this has been a car company. And I think there's a very good chance that a decade from now, Tesla will still be designing, manufacturing, and selling passenger vehicles to consumers across the world -- exactly what it does today.Don't be surprised if the vast majority of its revenue is derived from EVs in 2034. The issue, though, is that growth is undoubtedly going to slow, as has already happened. Intense competition and macro headwinds have forced Tesla to lower prices in order to drive demand. This situation tells me that growth over the next decade isn't going to come anywhere near the gains posted in the past 10 years.A different enterpriseBut there are some Tesla supporters, like Cathie Wood, who believe the company is going to completely transform itself in the years ahead. ARK Invest, the asset management firm that Wood heads up, puts out thoughtful research. But its projections can make you scratch your head. They are incredibly ambition targets.For example, one of Wood's well-publicized predictions is that by 2030, there will be a global robotaxi industry that generates $8 trillion to $10 trillion in annual revenue. Think of the rides that Uber or Lyft offer, but without a driver.Given Tesla's huge focus on artificial intelligence, Wood and her team think fully autonomous driving is going to become a reality. And they estimate half of that industry's multitrillion-dollar opportunity will go to platforms like Tesla's.Now, I have absolutely no clue whether or not Tesla can introduce a global fleet of robotaxis one day. Furthermore, the timeline is anyone's guess.I do believe it's valuable to assess the facts in front of us. We know that Musk has pushed back the introduction of this revolutionary technology on numerous occasions. This can cause investors to question if it's even possible, given the technical challenges and the roadblocks in gaining regulatory approvals and human trust.Should this end up happening, though, I can see Tesla's stock price soaring. But in my opinion, the probability is low.Should you buy Tesla stock?A convincing argument can be made that this business, which carries a market cap of $572 billion, is still overvalued. And this is even with the shares undergoing a major downswing in recent years.This leads us back to the original question of where Tesla will be 10 years from now. Based on the stock's expensive valuation -- a price-to-earnings ratio of 46.5 -- I believe investors who buy shares today will likely be disappointed with their returns over the next decade.","news_type":1},"isVote":1,"tweetType":1,"viewCount":27,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":321913763627184,"gmtCreate":1719622710556,"gmtModify":1720084298702,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=27f3b0a10b90901237bc1562068560e0&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=27f3b0a10b90901237bc1562068560e0&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321913763627184","isVote":1,"tweetType":1,"viewCount":15,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":321753399906352,"gmtCreate":1719583543448,"gmtModify":1719583545760,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321753399906352","repostId":"1114498179","repostType":4,"repost":{"id":"1114498179","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1719583500,"share":"https://www.laohu8.com/m/news/1114498179?lang=&edition=full","pubTime":"2024-06-28 22:05","market":"us","language":"en","title":"Tesla Stock Gains Over 2%, Breaking Through $200","url":"https://stock-news.laohu8.com/highlight/detail?id=1114498179","media":"Tiger Newspress","summary":"Tesla stock gains over 2%, breaking through $200 in morning trading Friday.","content":"<html><head></head><body><p>Tesla stock gained over 2%, breaking through $200 in morning trading Friday.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/53bc1c699f362a071177448b13bb5dc9\" title=\"\" tg-width=\"868\" tg-height=\"630\"/></p><p>If Tesla can pierce $207, the next stop looks to be $220 to $225 says Fairlead Strategies analyst Will Tamplin. The $207 level is essentially the 200-day moving average for Tesla stock.</p><p style=\"text-align: start;\">What will get Tesla through that level is likely delivery results. Tesla is slated to report second-quarter car deliveries on July 2. The current Wall Street estimates project about 420,000 cars sold. That’s down about 10% from a year ago. A lack of growth isn’t great, but Tesla stock was already down roughly 20% year to date, through early trading.</p><p>Beating expectations would show investors things aren’t quite as bad as feared.</p><p style=\"text-align: start;\">If Telsa deliveries disappoint, support for the stock is around $170, Tamplin adds.</p></body></html>","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 Stock Gains Over 2%, Breaking Through $200</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 Stock Gains Over 2%, Breaking Through $200\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2024-06-28 22:05</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Tesla stock gained over 2%, breaking through $200 in morning trading Friday.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/53bc1c699f362a071177448b13bb5dc9\" title=\"\" tg-width=\"868\" tg-height=\"630\"/></p><p>If Tesla can pierce $207, the next stop looks to be $220 to $225 says Fairlead Strategies analyst Will Tamplin. The $207 level is essentially the 200-day moving average for Tesla stock.</p><p style=\"text-align: start;\">What will get Tesla through that level is likely delivery results. Tesla is slated to report second-quarter car deliveries on July 2. The current Wall Street estimates project about 420,000 cars sold. That’s down about 10% from a year ago. A lack of growth isn’t great, but Tesla stock was already down roughly 20% year to date, through early trading.</p><p>Beating expectations would show investors things aren’t quite as bad as feared.</p><p style=\"text-align: start;\">If Telsa deliveries disappoint, support for the stock is around $170, Tamplin adds.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1114498179","content_text":"Tesla stock gained over 2%, breaking through $200 in morning trading Friday.If Tesla can pierce $207, the next stop looks to be $220 to $225 says Fairlead Strategies analyst Will Tamplin. The $207 level is essentially the 200-day moving average for Tesla stock.What will get Tesla through that level is likely delivery results. Tesla is slated to report second-quarter car deliveries on July 2. The current Wall Street estimates project about 420,000 cars sold. That’s down about 10% from a year ago. A lack of growth isn’t great, but Tesla stock was already down roughly 20% year to date, through early trading.Beating expectations would show investors things aren’t quite as bad as feared.If Telsa deliveries disappoint, support for the stock is around $170, Tamplin adds.","news_type":1},"isVote":1,"tweetType":1,"viewCount":21,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":321686531141680,"gmtCreate":1719567218067,"gmtModify":1719567220108,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321686531141680","repostId":"2446539254","repostType":2,"repost":{"id":"2446539254","pubTimestamp":1719567000,"share":"https://www.laohu8.com/m/news/2446539254?lang=&edition=full","pubTime":"2024-06-28 17:30","market":"us","language":"en","title":"Amazon: $2 Trillion Reached - More To Come","url":"https://stock-news.laohu8.com/highlight/detail?id=2446539254","media":"Seeking Alpha","summary":"For the past 3 months, Amazon's stock outperformed the market with a 12.59% return, reaching a $2 trillion market cap milestone.I think there is more to come: Amazon's financials and recent developmen","content":"<html><head></head><body><ul style=\"\"><li><p>For the past 3 months, Amazon&#39;s stock outperformed the market with a 12.59% return, reaching a $2 trillion market cap milestone.</p></li><li><p>I think there is more to come: Amazon&#39;s financials and recent developments show that the company&#39;s market position should help it reach new heights.</p></li><li><p>AWS&#39;s exceptional performance, investments in AI, and focus on improving efficiency position Amazon for continued growth and profitability.</p></li><li><p>My valuation model suggests that Amazon&#39;s market capitalization should keep expanding - the stock price could reach $247 by the end of FY2025.</p></li><li><p>I maintain my buy recommendation for AMZN.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a658b271125a6e1a6614873d6b718ea9\" alt=\"leolintang/iStock via Getty Images\" title=\"leolintang/iStock via Getty Images\" tg-width=\"750\" tg-height=\"500\"/><span>leolintang/iStock via Getty Images</span></p><h2 id=\"id_465231203\">My Coverage History</h2><p>I published my first and so far only article on Amazon.com, Inc. (NASDAQ:AMZN) stock here on Seeking Alpha in March 2024. At the time, I argued that AMZN was the cheapest stock of all megacaps, despite its seemingly inflated valuation multiples. I also argued at the time that while Amazon&#39;s stock price was only slightly above its pre-&#34;mini-crisis 2022&#34; highs, the company&#39;s business was growing disproportionately better. I expected then that AMZN stock would continue to rise thanks to the company&#39;s shift in focus (from retail to AWS) and its undervaluation. A little over 3 months have passed since then, and although AMZN did not become the fastest-growing stock of the mega caps, it managed to outperform the broader market with a total return of 12.59%:</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/628ac3b882168b1b35c12e0f9f6f81a7\" alt=\"YCharts, Seeking Alpha, Oakoff&#39;s compilation\" title=\"YCharts, Seeking Alpha, Oakoff&#39;s compilation\" tg-width=\"640\" tg-height=\"283\"/><span>YCharts, Seeking Alpha, Oakoff&#39;s compilation</span></p><h2 id=\"id_2273594234\">My Thesis Today</h2><p>Just yesterday, on 26 June 2024, Amazon reached an important milestone of $2 trillion in market cap. I think there is more to come: Amazon&#39;s financials and recent developments show that the company&#39;s market position should help it reach new heights. My valuation model suggests that Amazon&#39;s market capitalization should keep expanding - the stock price could reach $247 by the end of FY2025.</p><h2 id=\"id_1952544208\">My Reasoning</h2><p>Despite a challenging global economic environment and a weaker consumer online retail sector, Amazon reported Q1 revenue of $143.3 billion (+12.5% YoY), which exceeded the consensus estimate by nearly ~$764 million, according to Seeking Alpha data. The EPS figure of $0.98 also beat the Street&#39;s expectations by $0.15 (that&#39;s ~18%), driven by &#34;strong contributions from both retail operations and AWS.&#34;</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c9a39a8c25a08756744b009dd7b80744\" alt=\"Seeking Alpha, AMZN\" title=\"Seeking Alpha, AMZN\" tg-width=\"640\" tg-height=\"152\"/><span>Seeking Alpha, AMZN</span></p><p>What I like, looking at the consolidated results, was the COGS-as-of-sales reduction from 53.2% last year to ~50.68% in Q1, which is an improvement of nearly 255 basis points in just 1 year. Fulfillment and shipping costs per unit decreased, and merchandise margins improved. SG&amp;A costs decreased on an absolute basis by 6.13% YoY, and it looks like the disciplined approach to budgeting and slower headcount growth also contributed to better-than-expected financial outcomes.</p><p>Now, let&#39;s examine the separate segments. Amazon&#39;s retail business enjoyed double-digit growth in both North American and International operations as far as I can discern. NA sales reached ~$86.3 billion which was 12% higher than the same period last year and EBIT was at $4.98 billion, bringing it to a six times increase over Q1 2023 levels. The international part also improved greatly as sales were worth $31.9 billion (+10% YoY) and an EBIT of $903 million compared to the operating loss of -$1.25bn before; it was also its first profitable quarter in 2023 alone apart from little gain recorded during Q3 2023.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/411704e90471eed9d1679d212cfca3ba\" alt=\"AMZN&#39;s 10-Q, Oakoff&#39;s notes\" title=\"AMZN&#39;s 10-Q, Oakoff&#39;s notes\" tg-width=\"640\" tg-height=\"385\"/><span>AMZN&#39;s 10-Q, Oakoff&#39;s notes</span></p><p>As demonstrated in the figures above, AWS has had an exceptional performance, significantly boosting Amazon&#39;s overall success. Revenue saw an impressive growth of 17%, reaching $25 billion. Notably, the EBIT margin hit a record high of 37.6%; the segment&#39;s operating profit surged to $9.4 billion, marking an 84% increase from the previous year and making up 61.4% of the total consolidated EBIT. The global shift towards generative AI seems to have propelled AWS forward, establishing it as a key player in the AI-as-a-Service market today. And I think AWS still has more growth opportunities ahead of it.</p><p>First, as I wrote in my previous AMZN article, its investment of up to $4 billion in Anthropic - a provider of AI foundation models - should further strengthen AWS&#39;s capabilities in this space, only accelerating its top-line growth rates. Anthropic itself has seen outstanding growth rates in recent quarters, which I think shows how much the demand for creating large language models has changed - and we are probably only at the beginning of this new trend.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6851037f5c05219047ce71a7e97f934c\" alt=\"Sacra, Oakoff&#39;s notes\" title=\"Sacra, Oakoff&#39;s notes\" tg-width=\"640\" tg-height=\"649\"/><span>Sacra, Oakoff&#39;s notes</span></p><p>Second, I believe that AWS&#39;s Bedrock - &#34;first launched in April 2023 as part of a set of new tools for building generative AI on AWS&#34; - will provide an additional boost to revenue and keep the EBIT margin at a relatively high level (perhaps even increasing the current levels). In such a short time on the market, Bedrock has already acquired many major customers, and their number is apparently set to grow, as the company offers solutions that, according to the management, no other competitor has yet.</p><blockquote><p><em>Bedrock already has tens of thousands of customers, including Adidas, New York Stock Exchange, Pfizer, Ryanair, and Toyota. In the last few months, Bedrock&#39;s added Anthropic&#39;s Claude 3 models, the best-performing models in the planet right now; Meta&#39;s Llama 3 models; Mistral&#39;s Various models, Cohere&#39;s newest models, and new first-party Amazon Titan models.</em></p><p><em>A week ago, Bedrock launched a series of other features, but perhaps most importantly, Custom Model Import. Custom Model Import is a sneaky big launch as it satisfies a customer request we&#39;ve heard frequently and that nobody has yet met.</em></p></blockquote><p>My assumption about the sustainability of demand for AWS&#39;s Bedrock is indirectly confirmed by interviews with those who have been able to use it in practice. AlphaSense recently published excerpts from an interview with an AWS Bedrock and SageMaker customer who generously shared their experiences and insights. Despite having concerns about data privacy with OpenAI and ChatGPT, they &#34;praised Bedrock as a fully managed LLM service platform&#34; and appreciated the ability to choose between different model providers. It&#39;s also important to note on their part - cost-wise, they found AWS to be less expensive compared to Microsoft (MSFT) Azure and OpenAI, while also noting that Azure doesn&#39;t offer the same variety of models as Bedrock. So from a competitiveness standpoint, Bedrock should help keep AWS at the forefront of the current cycle of increasing demand for AI solutions - indicating a high likelihood that financial growth will not only be maintained but accelerated as the TAM expands.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ed7e55e786734fcf5225f80ed6edf756\" alt=\"@AlphaSenseInc on X\" title=\"@AlphaSenseInc on X\" tg-width=\"640\" tg-height=\"370\"/><span>@AlphaSenseInc on X</span></p><p>Even without touching on the topic of AI and looking only at the retail business, Amazon still has some opportunities to improve efficiency on this front. As BofA analysts recently wrote, the company is going to focus on establishing Inbound Cross Docks and new Consolidation Centers, enhancing inventory network distribution with new fees to incentivize third-party sellers to distribute their inventory, and increasing the unit share of new Same-Day sites, which are more cost effective than traditional fulfillment centers. In addition, the increasing integration of robots in fulfillment centers, the slowdown in space growth compared to unit growth, and the increasing use of third-party shipping services and Amazon&#39;s supply chain will contribute to improved efficiency going forward.</p><blockquote><p><em>We think Amazon can drive upside, given another year of limited fulfillment expansion in 2024 (similar to 2023). Maintaining 1Q margins through the end of the year would drive 3% upside to Street profit estimates, but an upside case with 50 bps margin improvement from here could drive 5% upside.</em></p></blockquote><p>With all this in mind, let&#39;s talk about the valuation of the company.</p><p>The current price-to-earnings ratio of almost 43x for 2024 seems quite high, but if we assume that the company actually grows its earnings per share by more than 56% YoY in 2024 and records further growth of almost 27% YoY in 2025, as the consensus expects, then I don&#39;t believe that AMZN can be called an overvalued company today. If we assume that BofA analysts are right and the company can indeed command a premium of at least 3% to current EPS consensus forecasts, then I think the Street should have less reason to expect the multiple to shrink to 33.8x by the end of 2025 as it&#39;s implied today:</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2772c9416ba6c9c68d2603476159d32b\" alt=\"Seeking Alpha, AMZN, Oakoff&#39;s notes\" title=\"Seeking Alpha, AMZN, Oakoff&#39;s notes\" tg-width=\"640\" tg-height=\"352\"/><span>Seeking Alpha, AMZN, Oakoff&#39;s notes</span></p><p>I expect AMZN&#39;s EPS to grow at a premium of at least 3% to existing forecasts in 2024 and 2025 - then EPS for those years would be $4.77 and $6.17 respectively. If the currently implied multiple contraction doesn&#39;t happen, and AMZN trades at 40 times earnings at the end of 2025, the implied stock price should be around $247 in 1.5 years - this gives me an upside potential of 26.6% to the current stock price.</p><h2 id=\"id_3567620173\">Risks To My Thesis</h2><p>As one of the main concerns, I think investors should always keep in mind that Amazon may encounter intense competition in the coming years as more companies ramp up their online sales efforts and match Amazon&#39;s prices in physical stores. So despite its currently still-leading position in different business areas, thanks to innovations like Prime and the growth of third-party sales, Amazon could face significant challenges.</p><p>I would also like to draw your attention to the fact that, no matter how hard I try to justify its valuation, AMZN stock still can&#39;t be described as cheap. Holding a stock that is trading above 40x of forward earnings, investors are taking a big risk if Amazon fails to meet expectations, which have risen sharply in recent quarters. It looks like it&#39;s going to be increasingly difficult to beat EPS and sales figures in the future.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/832c0cbfbec1db084aae6981337ee672\" alt=\"Seeking Alpha, AMZN\" title=\"Seeking Alpha, AMZN\" tg-width=\"640\" tg-height=\"282\"/><span>Seeking Alpha, AMZN</span></p><p>One of the risks can also be found through technical analysis. Despite its super-strong momentum, AMZN stock is now at great risk of falling back into its usual medium-term price range if it fails to successfully consolidate above $190 in the next few trading sessions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2635a367fc5fbd96038d6f8ba95c678f\" alt=\"TrendSpider Software, AMZN, Oakoff&#39;s notes added\" title=\"TrendSpider Software, AMZN, Oakoff&#39;s notes added\" tg-width=\"640\" tg-height=\"301\"/><span>TrendSpider Software, AMZN, Oakoff&#39;s notes added</span></p><h2 id=\"id_385961839\">Your Takeaway</h2><p>Despite all the potential risks the company could face in the near term, I still believe Amazon&#39;s impressive financial results point to further growth potential that should be capitalized on through its investments in AI. Speaking of Bedrock in particular, it has already attracted large customers and offers unique capabilities that set it apart from the competition, as far as I can tell. Also, Further, Amazon&#39;s concentration on improving its logistics system and efficiency via initiatives like inbound cross docks and robotics integration should increase profitability overall.</p><p>With expectations of continued EPS growth and a potential stock price increase to $247 by the end of 2025, Amazon&#39;s prospects look bright at this point and make the company an attractive investment opportunity. In my opinion, the recently reached $2 trillion market cap milestone could be just the beginning.</p><p>I maintain my buy recommendation for AMZN.</p><p><em>Good luck with your investments!</em></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>Amazon: $2 Trillion Reached - More To Come</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\">\nAmazon: $2 Trillion Reached - More To Come\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-28 17:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4701288-amazon-2-trillion-reached-more-to-come><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>For the past 3 months, Amazon's stock outperformed the market with a 12.59% return, reaching a $2 trillion market cap milestone.I think there is more to come: Amazon's financials and recent ...</p>\n\n<a href=\"https://seekingalpha.com/article/4701288-amazon-2-trillion-reached-more-to-come\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","BK4220":"综合零售","BK4535":"淡马锡持仓","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","BK4559":"巴菲特持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK4538":"云计算","BK4550":"红杉资本持仓","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0238689110.USD":"贝莱德环球动力股票基金","LU0109391861.USD":"富兰克林美国机遇基金A Acc","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","BK4122":"互联网与直销零售","LU0072462426.USD":"贝莱德全球配置 A2","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4551":"寇图资本持仓","LU0082616367.USD":"摩根大通美国科技A（dist）","GB00B4QBRK32.GBP":"FUNDSMITH EQUITY \"R\" (GBP) INC","BK4097":"系统软件","LU0080751232.USD":"富达环球多元动力基金A","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","LU0061474960.USD":"天利环球焦点基金AU Acc","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","BK4516":"特朗普概念","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","BK4554":"元宇宙及AR概念","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","BK4532":"文艺复兴科技持仓","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","AMZN":"亚马逊","IE0003U64NQ7.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","BK4534":"瑞士信贷持仓","BK4567":"ESG概念","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","IE000KEQY171.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) INC","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4566":"资本集团"},"source_url":"https://seekingalpha.com/article/4701288-amazon-2-trillion-reached-more-to-come","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2446539254","content_text":"For the past 3 months, Amazon's stock outperformed the market with a 12.59% return, reaching a $2 trillion market cap milestone.I think there is more to come: Amazon's financials and recent developments show that the company's market position should help it reach new heights.AWS's exceptional performance, investments in AI, and focus on improving efficiency position Amazon for continued growth and profitability.My valuation model suggests that Amazon's market capitalization should keep expanding - the stock price could reach $247 by the end of FY2025.I maintain my buy recommendation for AMZN.leolintang/iStock via Getty ImagesMy Coverage HistoryI published my first and so far only article on Amazon.com, Inc. (NASDAQ:AMZN) stock here on Seeking Alpha in March 2024. At the time, I argued that AMZN was the cheapest stock of all megacaps, despite its seemingly inflated valuation multiples. I also argued at the time that while Amazon's stock price was only slightly above its pre-\"mini-crisis 2022\" highs, the company's business was growing disproportionately better. I expected then that AMZN stock would continue to rise thanks to the company's shift in focus (from retail to AWS) and its undervaluation. A little over 3 months have passed since then, and although AMZN did not become the fastest-growing stock of the mega caps, it managed to outperform the broader market with a total return of 12.59%:YCharts, Seeking Alpha, Oakoff's compilationMy Thesis TodayJust yesterday, on 26 June 2024, Amazon reached an important milestone of $2 trillion in market cap. I think there is more to come: Amazon's financials and recent developments show that the company's market position should help it reach new heights. My valuation model suggests that Amazon's market capitalization should keep expanding - the stock price could reach $247 by the end of FY2025.My ReasoningDespite a challenging global economic environment and a weaker consumer online retail sector, Amazon reported Q1 revenue of $143.3 billion (+12.5% YoY), which exceeded the consensus estimate by nearly ~$764 million, according to Seeking Alpha data. The EPS figure of $0.98 also beat the Street's expectations by $0.15 (that's ~18%), driven by \"strong contributions from both retail operations and AWS.\"Seeking Alpha, AMZNWhat I like, looking at the consolidated results, was the COGS-as-of-sales reduction from 53.2% last year to ~50.68% in Q1, which is an improvement of nearly 255 basis points in just 1 year. Fulfillment and shipping costs per unit decreased, and merchandise margins improved. SG&A costs decreased on an absolute basis by 6.13% YoY, and it looks like the disciplined approach to budgeting and slower headcount growth also contributed to better-than-expected financial outcomes.Now, let's examine the separate segments. Amazon's retail business enjoyed double-digit growth in both North American and International operations as far as I can discern. NA sales reached ~$86.3 billion which was 12% higher than the same period last year and EBIT was at $4.98 billion, bringing it to a six times increase over Q1 2023 levels. The international part also improved greatly as sales were worth $31.9 billion (+10% YoY) and an EBIT of $903 million compared to the operating loss of -$1.25bn before; it was also its first profitable quarter in 2023 alone apart from little gain recorded during Q3 2023.AMZN's 10-Q, Oakoff's notesAs demonstrated in the figures above, AWS has had an exceptional performance, significantly boosting Amazon's overall success. Revenue saw an impressive growth of 17%, reaching $25 billion. Notably, the EBIT margin hit a record high of 37.6%; the segment's operating profit surged to $9.4 billion, marking an 84% increase from the previous year and making up 61.4% of the total consolidated EBIT. The global shift towards generative AI seems to have propelled AWS forward, establishing it as a key player in the AI-as-a-Service market today. And I think AWS still has more growth opportunities ahead of it.First, as I wrote in my previous AMZN article, its investment of up to $4 billion in Anthropic - a provider of AI foundation models - should further strengthen AWS's capabilities in this space, only accelerating its top-line growth rates. Anthropic itself has seen outstanding growth rates in recent quarters, which I think shows how much the demand for creating large language models has changed - and we are probably only at the beginning of this new trend.Sacra, Oakoff's notesSecond, I believe that AWS's Bedrock - \"first launched in April 2023 as part of a set of new tools for building generative AI on AWS\" - will provide an additional boost to revenue and keep the EBIT margin at a relatively high level (perhaps even increasing the current levels). In such a short time on the market, Bedrock has already acquired many major customers, and their number is apparently set to grow, as the company offers solutions that, according to the management, no other competitor has yet.Bedrock already has tens of thousands of customers, including Adidas, New York Stock Exchange, Pfizer, Ryanair, and Toyota. In the last few months, Bedrock's added Anthropic's Claude 3 models, the best-performing models in the planet right now; Meta's Llama 3 models; Mistral's Various models, Cohere's newest models, and new first-party Amazon Titan models.A week ago, Bedrock launched a series of other features, but perhaps most importantly, Custom Model Import. Custom Model Import is a sneaky big launch as it satisfies a customer request we've heard frequently and that nobody has yet met.My assumption about the sustainability of demand for AWS's Bedrock is indirectly confirmed by interviews with those who have been able to use it in practice. AlphaSense recently published excerpts from an interview with an AWS Bedrock and SageMaker customer who generously shared their experiences and insights. Despite having concerns about data privacy with OpenAI and ChatGPT, they \"praised Bedrock as a fully managed LLM service platform\" and appreciated the ability to choose between different model providers. It's also important to note on their part - cost-wise, they found AWS to be less expensive compared to Microsoft (MSFT) Azure and OpenAI, while also noting that Azure doesn't offer the same variety of models as Bedrock. So from a competitiveness standpoint, Bedrock should help keep AWS at the forefront of the current cycle of increasing demand for AI solutions - indicating a high likelihood that financial growth will not only be maintained but accelerated as the TAM expands.@AlphaSenseInc on XEven without touching on the topic of AI and looking only at the retail business, Amazon still has some opportunities to improve efficiency on this front. As BofA analysts recently wrote, the company is going to focus on establishing Inbound Cross Docks and new Consolidation Centers, enhancing inventory network distribution with new fees to incentivize third-party sellers to distribute their inventory, and increasing the unit share of new Same-Day sites, which are more cost effective than traditional fulfillment centers. In addition, the increasing integration of robots in fulfillment centers, the slowdown in space growth compared to unit growth, and the increasing use of third-party shipping services and Amazon's supply chain will contribute to improved efficiency going forward.We think Amazon can drive upside, given another year of limited fulfillment expansion in 2024 (similar to 2023). Maintaining 1Q margins through the end of the year would drive 3% upside to Street profit estimates, but an upside case with 50 bps margin improvement from here could drive 5% upside.With all this in mind, let's talk about the valuation of the company.The current price-to-earnings ratio of almost 43x for 2024 seems quite high, but if we assume that the company actually grows its earnings per share by more than 56% YoY in 2024 and records further growth of almost 27% YoY in 2025, as the consensus expects, then I don't believe that AMZN can be called an overvalued company today. If we assume that BofA analysts are right and the company can indeed command a premium of at least 3% to current EPS consensus forecasts, then I think the Street should have less reason to expect the multiple to shrink to 33.8x by the end of 2025 as it's implied today:Seeking Alpha, AMZN, Oakoff's notesI expect AMZN's EPS to grow at a premium of at least 3% to existing forecasts in 2024 and 2025 - then EPS for those years would be $4.77 and $6.17 respectively. If the currently implied multiple contraction doesn't happen, and AMZN trades at 40 times earnings at the end of 2025, the implied stock price should be around $247 in 1.5 years - this gives me an upside potential of 26.6% to the current stock price.Risks To My ThesisAs one of the main concerns, I think investors should always keep in mind that Amazon may encounter intense competition in the coming years as more companies ramp up their online sales efforts and match Amazon's prices in physical stores. So despite its currently still-leading position in different business areas, thanks to innovations like Prime and the growth of third-party sales, Amazon could face significant challenges.I would also like to draw your attention to the fact that, no matter how hard I try to justify its valuation, AMZN stock still can't be described as cheap. Holding a stock that is trading above 40x of forward earnings, investors are taking a big risk if Amazon fails to meet expectations, which have risen sharply in recent quarters. It looks like it's going to be increasingly difficult to beat EPS and sales figures in the future.Seeking Alpha, AMZNOne of the risks can also be found through technical analysis. Despite its super-strong momentum, AMZN stock is now at great risk of falling back into its usual medium-term price range if it fails to successfully consolidate above $190 in the next few trading sessions.TrendSpider Software, AMZN, Oakoff's notes addedYour TakeawayDespite all the potential risks the company could face in the near term, I still believe Amazon's impressive financial results point to further growth potential that should be capitalized on through its investments in AI. Speaking of Bedrock in particular, it has already attracted large customers and offers unique capabilities that set it apart from the competition, as far as I can tell. Also, Further, Amazon's concentration on improving its logistics system and efficiency via initiatives like inbound cross docks and robotics integration should increase profitability overall.With expectations of continued EPS growth and a potential stock price increase to $247 by the end of 2025, Amazon's prospects look bright at this point and make the company an attractive investment opportunity. In my opinion, the recently reached $2 trillion market cap milestone could be just the beginning.I maintain my buy recommendation for AMZN.Good luck with your investments!","news_type":1},"isVote":1,"tweetType":1,"viewCount":16,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":321665524977720,"gmtCreate":1719562211502,"gmtModify":1719562215147,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Win prizes time[Miser]&nbsp;&nbsp;[Cool]&nbsp;&nbsp;","listText":"Win prizes time[Miser]&nbsp;&nbsp;[Cool]&nbsp;&nbsp;","text":"Win prizes time[Miser] [Cool]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321665524977720","isVote":1,"tweetType":1,"viewCount":16,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":321664930898064,"gmtCreate":1719562103846,"gmtModify":1719562105814,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321664930898064","repostId":"313600081719480","repostType":1,"repost":{"id":313600081719480,"gmtCreate":1717584773809,"gmtModify":1719559158217,"author":{"id":"3527667667103859","authorId":"3527667667103859","name":"TigerEvents","avatar":"https://community-static.tradeup.com/news/c266ef25181ace18bec1262357bbe1a8","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"title":"[10th Anniv] Discover exciting features & win a US$1,010 reward!","htmlText":"🎉 Unlock Your Path to $1,010 voucher with Our Winning Guide! 🎉Our exclusive anniversary event is now LIVE, and we want YOU to join in the fun! 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Here’s how you can maximize your winnings:🏆 Winning Guide 🏆Discover Exclusive Features:Click to explore the unique features you’re interested in.Watch the feature introduction videos and complete the corresponding tasksShow Your Love:Like your favorite featuresIf the features you like end up in the top three, you’ll share in extra grand prizes!Collect and Win:Complete special tasks to earn pieces.Collect all pieces to exchange for high-value rewards!💡 Pro Tips:Complete highlighted tasks to earn extra rewards and a big bonus!Ready to dive","images":[{"img":"https://community-static.tradeup.com/news/ba3323c6518b57d08bcc75d90ffa0c5a","width":"2000","height":"2000"}],"top":1,"highlighted":1,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/313600081719480","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":64,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":321661008564272,"gmtCreate":1719560986968,"gmtModify":1719561796810,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=9a9691df58feca21d8acb9e449793924&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=9a9691df58feca21d8acb9e449793924&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321661008564272","isVote":1,"tweetType":1,"viewCount":17,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":321552660488320,"gmtCreate":1719534769496,"gmtModify":1719534773542,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321552660488320","repostId":"321273332084944","repostType":1,"repost":{"id":321273332084944,"gmtCreate":1719469089057,"gmtModify":1719479511158,"author":{"id":"10000000000010921","authorId":"10000000000010921","name":"EliteOptionsTrader","avatar":"https://community-static.tradeup.com/news/5a78e8ff8100616ecc6724330507917f","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"title":"Tradin Strategies: .SPX, NVDA, AMZN, ARM& TSLA","htmlText":"Hello everyone! Today i want to share some trading strategies with you!1. <a href=\"https://ttm.financial/S/.SPX\">$S&amp;P 500(.SPX)$</a> trying to move red to green price action more bullish here, needs 5483 next to test 5500 <a href=\"https://ttm.financial/S/ARM\">$ARM Holdings Ltd(ARM)$</a> testing 164, if it holds 164 today it can run to 170+ <a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$</a> setting up for 130.. price action strong ater holding near 125 <a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$</a> to 200 coming next, needs to defend 190 into the end of the month2. <a href=\"https://ttm.financial/S/AMZN\">$Amazon.com(AMZN)$</a> setting up for 200 in July 📈 Watch to see if it can start to base above 188 over the next 3 days.. That will be the clue we can see a","listText":"Hello everyone! Today i want to share some trading strategies with you!1. <a href=\"https://ttm.financial/S/.SPX\">$S&amp;P 500(.SPX)$</a> trying to move red to green price action more bullish here, needs 5483 next to test 5500 <a href=\"https://ttm.financial/S/ARM\">$ARM Holdings Ltd(ARM)$</a> testing 164, if it holds 164 today it can run to 170+ <a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$</a> setting up for 130.. price action strong ater holding near 125 <a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$</a> to 200 coming next, needs to defend 190 into the end of the month2. <a href=\"https://ttm.financial/S/AMZN\">$Amazon.com(AMZN)$</a> setting up for 200 in July 📈 Watch to see if it can start to base above 188 over the next 3 days.. That will be the clue we can see a","text":"Hello everyone! Today i want to share some trading strategies with you!1. $S&P 500(.SPX)$ trying to move red to green price action more bullish here, needs 5483 next to test 5500 $ARM Holdings Ltd(ARM)$ testing 164, if it holds 164 today it can run to 170+ $NVIDIA Corp(NVDA)$ setting up for 130.. price action strong ater holding near 125 $Tesla Motors(TSLA)$ to 200 coming next, needs to defend 190 into the end of the month2. $Amazon.com(AMZN)$ setting up for 200 in July 📈 Watch to see if it can start to base above 188 over the next 3 days.. That will be the clue we can see a","images":[{"img":"https://community-static.tradeup.com/news/1d788ca1dee479c3c85ce00320845f55","width":"288","height":"83"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321273332084944","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":3,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":320533370097936,"gmtCreate":1719288143016,"gmtModify":1719288146483,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/320533370097936","repostId":"1121527383","repostType":2,"repost":{"id":"1121527383","pubTimestamp":1719283453,"share":"https://www.laohu8.com/m/news/1121527383?lang=&edition=full","pubTime":"2024-06-25 10:44","market":"sg","language":"en","title":"Singapore’s \"Fomo\" Amid the Rise of the AI Data Centre","url":"https://stock-news.laohu8.com/highlight/detail?id=1121527383","media":"Financial Times","summary":"Singaporeans are a competitive bunch. One of the must-know Singlish words for those living in the city-state is kiasu. The Chinese Hokkien term roughly means a fear of missing or losing out and often ","content":"<html><head></head><body><p>Singaporeans are a competitive bunch. One of the must-know Singlish words for those living in the city-state is kiasu. The Chinese Hokkien term roughly means a fear of missing or losing out and often refers to someone trying to get ahead of others. “Fomo on steroids” is how one Singaporean friend describes it.<br/><br/>One of the best places to see this in action is the queues at lunchtime around stalls of the city-state’s favourite hawker food markets. Another area to observe the kiasu mentality in the Asian financial centre is in business, such as foreign investment.</p><p>Singapore made a surprise announcement last month that it would free up more power for data centre expansion. The move came as the chief executives of Nvidia, Google, Microsoft and others have been swinging by neighbouring Malaysia — and other countries in south-east Asia — in recent months pledging billions in data centre investment.</p><p>In Malaysia alone, the tech groups — three of the top four biggest companies by market capitalisation globally — have committed $8.5bn in new data centre, cloud and artificial intelligence investment in the past six months. Which is why more than one Malaysian government official joked that Singapore’s decision to court more data centres was a “typical Singapore kiasu response” to its neighbour’s progress.</p><p>Of course there is some competition between Singapore and its neighbours, especially Malaysia from which it gained independence in 1965. But it is overly simplistic to dismiss Singapore’s move as kiasu-ness — even if there is an element of that at play. The city-state is already hyper connected and one of the biggest data centre markets in Asia — a trend that accelerated as Hong Kong became a less favoured destination for data centres and undersea cables. It is one of the top submarine cable hubs globally, with connections to 25 active subsea cables and more to come. None of that will change soon.</p><p>The decision to increase data centre capacity last month was a surprise to many because the government imposed a more than three-year moratorium on new data centres between 2019 and 2022. The proliferation of the energy-guzzling facilities had been consuming a substantial amount of Singapore’s resources. That ban helped push data centre companies into nearby Johor, the Malaysian state just across the causeway, and to a certain extent Batam, a close-by Indonesian island.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b8d00af59f97a12c370a5c026451c626\" alt=\"Dual-axis chart showing Singapore’s data centre market lagging its Asean neighbours\" title=\"Dual-axis chart showing Singapore’s data centre market lagging its Asean neighbours\" tg-width=\"700\" tg-height=\"500\"/><span>Dual-axis chart showing Singapore’s data centre market lagging its Asean neighbours</span></p><p></p><p>The conundrum Singapore faces now — like many other countries — is that it grossly underestimated how demand for AI is going to expand the global market for data centres in coming years. The city-state has made little secret of the fact that it wants to be the AI hub for south-east Asia, if not the top in Asia.</p><p>That’s because being such a hub brings other economic benefits. For example, as part of Nvidia’s data centre investment in Malaysia, the company will partner with local conglomerate YTL Power to develop the country’s fastest supercomputers using Nvidia’s AI chips. Microsoft last month unveiled landmark AI infrastructure investments in Indonesia and Thailand.</p><p>Singapore realises it cannot ultimately compete with its neighbours for land and power. The key is how to complement it. The reason Johor is popular with global tech giants from ByteDance to Nvidia and Microsoft is because it is just a few kilometres away from hyperconnected Singapore.</p><p>“Both Johor and Singapore can benefit from the data centre boom. They complement each other,” says Rangnath Salgame, chair and chief executive of Princeton Digital Group, an Asian data centre company based in Singapore but expanding in Johor. It is a “symbiotic relationship”, he adds.</p><p>And as more and more companies diversify supply chains away from China that puts Singapore in pole position. One way it can benefit is by promoting a Singapore + one strategy, whereby companies establish a headquarters in the country to leverage its international business environment, free trade agreements and access to professional talent, but then have their manufacturing — or data centre — facilities in places such as Johor.</p><p>This is already a long-term trend. Singapore was the top recipient of inward foreign direct investment flows in south-east Asia between 2013 and 2022, according to the latest data published by the bloc. In 2022, Singapore attracted $141bn of FDI, accounting for more than half of the region’s total. So should Singapore really be kiasu?</p></body></html>","source":"lsy1580170736413","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>Singapore’s \"Fomo\" Amid the Rise of the AI Data Centre</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\">\nSingapore’s \"Fomo\" Amid the Rise of the AI Data Centre\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-25 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.ft.com/content/49f6b682-311b-4ab1-b6bc-2ec8e1feec0b><strong>Financial Times</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Singaporeans are a competitive bunch. One of the must-know Singlish words for those living in the city-state is kiasu. The Chinese Hokkien term roughly means a fear of missing or losing out and often ...</p>\n\n<a href=\"https://www.ft.com/content/49f6b682-311b-4ab1-b6bc-2ec8e1feec0b\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"STI.SI":"富时新加坡海峡指数"},"source_url":"https://www.ft.com/content/49f6b682-311b-4ab1-b6bc-2ec8e1feec0b","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1121527383","content_text":"Singaporeans are a competitive bunch. One of the must-know Singlish words for those living in the city-state is kiasu. The Chinese Hokkien term roughly means a fear of missing or losing out and often refers to someone trying to get ahead of others. “Fomo on steroids” is how one Singaporean friend describes it.One of the best places to see this in action is the queues at lunchtime around stalls of the city-state’s favourite hawker food markets. Another area to observe the kiasu mentality in the Asian financial centre is in business, such as foreign investment.Singapore made a surprise announcement last month that it would free up more power for data centre expansion. The move came as the chief executives of Nvidia, Google, Microsoft and others have been swinging by neighbouring Malaysia — and other countries in south-east Asia — in recent months pledging billions in data centre investment.In Malaysia alone, the tech groups — three of the top four biggest companies by market capitalisation globally — have committed $8.5bn in new data centre, cloud and artificial intelligence investment in the past six months. Which is why more than one Malaysian government official joked that Singapore’s decision to court more data centres was a “typical Singapore kiasu response” to its neighbour’s progress.Of course there is some competition between Singapore and its neighbours, especially Malaysia from which it gained independence in 1965. But it is overly simplistic to dismiss Singapore’s move as kiasu-ness — even if there is an element of that at play. The city-state is already hyper connected and one of the biggest data centre markets in Asia — a trend that accelerated as Hong Kong became a less favoured destination for data centres and undersea cables. It is one of the top submarine cable hubs globally, with connections to 25 active subsea cables and more to come. None of that will change soon.The decision to increase data centre capacity last month was a surprise to many because the government imposed a more than three-year moratorium on new data centres between 2019 and 2022. The proliferation of the energy-guzzling facilities had been consuming a substantial amount of Singapore’s resources. That ban helped push data centre companies into nearby Johor, the Malaysian state just across the causeway, and to a certain extent Batam, a close-by Indonesian island.Dual-axis chart showing Singapore’s data centre market lagging its Asean neighboursThe conundrum Singapore faces now — like many other countries — is that it grossly underestimated how demand for AI is going to expand the global market for data centres in coming years. The city-state has made little secret of the fact that it wants to be the AI hub for south-east Asia, if not the top in Asia.That’s because being such a hub brings other economic benefits. For example, as part of Nvidia’s data centre investment in Malaysia, the company will partner with local conglomerate YTL Power to develop the country’s fastest supercomputers using Nvidia’s AI chips. Microsoft last month unveiled landmark AI infrastructure investments in Indonesia and Thailand.Singapore realises it cannot ultimately compete with its neighbours for land and power. The key is how to complement it. The reason Johor is popular with global tech giants from ByteDance to Nvidia and Microsoft is because it is just a few kilometres away from hyperconnected Singapore.“Both Johor and Singapore can benefit from the data centre boom. They complement each other,” says Rangnath Salgame, chair and chief executive of Princeton Digital Group, an Asian data centre company based in Singapore but expanding in Johor. It is a “symbiotic relationship”, he adds.And as more and more companies diversify supply chains away from China that puts Singapore in pole position. One way it can benefit is by promoting a Singapore + one strategy, whereby companies establish a headquarters in the country to leverage its international business environment, free trade agreements and access to professional talent, but then have their manufacturing — or data centre — facilities in places such as Johor.This is already a long-term trend. Singapore was the top recipient of inward foreign direct investment flows in south-east Asia between 2013 and 2022, according to the latest data published by the bloc. In 2022, Singapore attracted $141bn of FDI, accounting for more than half of the region’s total. So should Singapore really be kiasu?","news_type":1},"isVote":1,"tweetType":1,"viewCount":23,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":319235387666608,"gmtCreate":1718967137352,"gmtModify":1718967139430,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/319235387666608","repostId":"319251224756360","repostType":1,"repost":{"id":319251224756360,"gmtCreate":1718955875485,"gmtModify":1718955880658,"author":{"id":"3555293442593045","authorId":"3555293442593045","name":"Samlunch","avatar":"https://static.tigerbbs.com/17478579b111537e74aea4d338e8aef5","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$&nbsp;</a><v-v data-views=\"0\"></v-v>&nbsp; The number one priority of institutional investing is capital preservation. Buffetts number one rule is: ‘Don’t lose money’ Buffetts number two rule is: ‘Refer to Rule Number 1’ We are now 20 months into this Bull Run. Preparation for this cycle to end should be a priority over the next 1-2 months.","listText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$&nbsp;</a><v-v data-views=\"0\"></v-v>&nbsp; The number one priority of institutional investing is capital preservation. Buffetts number one rule is: ‘Don’t lose money’ Buffetts number two rule is: ‘Refer to Rule Number 1’ We are now 20 months into this Bull Run. Preparation for this cycle to end should be a priority over the next 1-2 months.","text":"$NVIDIA Corp(NVDA)$ The number one priority of institutional investing is capital preservation. Buffetts number one rule is: ‘Don’t lose money’ Buffetts number two rule is: ‘Refer to Rule Number 1’ We are now 20 months into this Bull Run. Preparation for this cycle to end should be a priority over the next 1-2 months.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/319251224756360","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":112,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":319235226964112,"gmtCreate":1718967093441,"gmtModify":1718967095390,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/319235226964112","repostId":"319087046475840","repostType":1,"repost":{"id":319087046475840,"gmtCreate":1718915670843,"gmtModify":1718915682517,"author":{"id":"4179350750825112","authorId":"4179350750825112","name":"Lively Anna","avatar":"https://community-static.tradeup.com/news/aefc8904347263580fc13ecbfded24c0","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"title":"U.S. Stocks \"Seven Sisters\" | Nvidia closed down more than 3.5%, and its closing market value fell back to between Microsoft and Apple","htmlText":"On Thursday (June 20), Nvidia closed down 3.54% at $130.78, with a closing market value of $3.217188 trillion. Apple closed down 2.15% at $209.68, with a closing market value of $3.21523312 trillion. Microsoft closed down 0.14% at $445.70, with a closing market value of $3.3124424 trillion. Tesla closed down 1.78%, Microsoft fell 0.14%, Meta rose 0.44%, Google A rose 0.69%, and Amazon rose 1.80%. Outside of the \"Seven Sisters\", TSMC ADR closed down 2.4%, Eli Lilly fell 0.61%, Berkshire Hathaway Class B shares rose 0.29%, and AMD rose 4.62%.","listText":"On Thursday (June 20), Nvidia closed down 3.54% at $130.78, with a closing market value of $3.217188 trillion. Apple closed down 2.15% at $209.68, with a closing market value of $3.21523312 trillion. Microsoft closed down 0.14% at $445.70, with a closing market value of $3.3124424 trillion. Tesla closed down 1.78%, Microsoft fell 0.14%, Meta rose 0.44%, Google A rose 0.69%, and Amazon rose 1.80%. Outside of the \"Seven Sisters\", TSMC ADR closed down 2.4%, Eli Lilly fell 0.61%, Berkshire Hathaway Class B shares rose 0.29%, and AMD rose 4.62%.","text":"On Thursday (June 20), Nvidia closed down 3.54% at $130.78, with a closing market value of $3.217188 trillion. Apple closed down 2.15% at $209.68, with a closing market value of $3.21523312 trillion. Microsoft closed down 0.14% at $445.70, with a closing market value of $3.3124424 trillion. Tesla closed down 1.78%, Microsoft fell 0.14%, Meta rose 0.44%, Google A rose 0.69%, and Amazon rose 1.80%. Outside of the \"Seven Sisters\", TSMC ADR closed down 2.4%, Eli Lilly fell 0.61%, Berkshire Hathaway Class B shares rose 0.29%, and AMD rose 4.62%.","images":[{"img":"https://community-static.tradeup.com/news/775d2ae621c6871ad3ba1f8e25142c6b","width":"1572","height":"952"},{"img":"https://community-static.tradeup.com/news/487675ecce9bb3d784877adfb48ba113","width":"1578","height":"946"},{"img":"https://community-static.tradeup.com/news/71476da9c112d436dcbf62046a00bf2e","width":"1573","height":"950"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/319087046475840","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":3,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":138,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":318038434918648,"gmtCreate":1718684688046,"gmtModify":1718684692897,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$(NVDA)$&nbsp;</a><v-v data-views=\"1\"></v-v> Co-pilot","listText":"<a href=\"https://ttm.financial/S/NVDA\">$(NVDA)$&nbsp;</a><v-v data-views=\"1\"></v-v> Co-pilot","text":"$(NVDA)$ Co-pilot","images":[{"img":"https://community-static.tradeup.com/news/a72e32bdee65a4fd1e73a13e29170541","width":"1604","height":"2048"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/318038434918648","isVote":1,"tweetType":1,"viewCount":134,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":317452959232296,"gmtCreate":1718542208645,"gmtModify":1718542214941,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Share your opinion about this news…","listText":"Share your opinion about this news…","text":"Share your opinion about this news…","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/317452959232296","repostId":"2443595292","repostType":4,"repost":{"id":"2443595292","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1718500757,"share":"https://www.laohu8.com/m/news/2443595292?lang=&edition=full","pubTime":"2024-06-16 09:19","market":"fut","language":"en","title":"As Nvidia Soars, Stock Market's Deflated Laggards Spark Concern","url":"https://stock-news.laohu8.com/highlight/detail?id=2443595292","media":"Dow Jones","summary":"Signs of economic softness may be weighing on stocks outside the AI-fueled tech sector rally. America may love a winner, but it's the losers - and there are lots of them - that are starting to attract attention when it comes to the stock market.\"I think at the megacap level, it's really just a momentum story that's been in place this year. I think the bigger story is under the surface,\" Kevin Gordon, senior investment strategist at Charles Schwab, told MarketWatch in a phone interview.But outside a handful of megacap winners, the market is struggling. That handful of heavyweight winners account for a growing share of winners in the market-cap weighted S&P 500 index SPX and Nasdaq Composite COMP. The S&P 500 has rallied another 2.9% so far in June, bringing its year-to-date gain to 13.9%.To be clear, it isn't market concentration itself that is particularly worrying, Gordon said. Market watchers often point out that a handful of stocks often tend to account for outsize gains during rall","content":"<html><head></head><body><p>America may love a winner, but it&#39;s the losers - and there are lots of them - that are starting to attract attention when it comes to the stock market.</p><p>&#34;I think at the megacap level, it&#39;s really just a momentum story that&#39;s been in place this year. I think the bigger story is under the surface,&#34; Kevin Gordon, senior investment strategist at Charles Schwab, told MarketWatch in a phone interview.</p><p>That momentum story saw Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a>, playing catch-up with artificial-intelligence chip maker Nvidia Corp. <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a>, put on another 9% gain this week. Apple Inc. <a href=\"https://laohu8.com/S/AAPL.UK\">$(AAPL.UK)$</a> rallied over 7% after unveiling its &#34;Apple Intelligence&#34; aspirations, leading it to jockey with Microsoft Corp. <a href=\"https://laohu8.com/S/MSFT\">$(MSFT)$</a> for the most-valuable company crown.</p><p>But outside a handful of megacap winners, the market is struggling. That handful of heavyweight winners account for a growing share of winners in the market-cap weighted S&amp;P 500 index SPX and Nasdaq Composite COMP. The S&amp;P 500 has rallied another 2.9% so far in June, bringing its year-to-date gain to 13.9%.</p><p>The equalweight version of the S&amp;P 500, which as the name implies gives the same weighting to each of its components, is down 0.4% in June and has gained just 4.4% year to date. The more cyclically oriented and, importantly, price-weighted Dow Jones Industrial Average DJIA also notably lags behind the cap-weighted indexes, down 0.3% in June and up just 2.4% in the year to date.</p><p>The S&amp;P 500 hit record highs despite less than half of members trading above their 50-day moving average, and the five largest stocks accounting for half of the year-to-date gain, noted Mark Hackett, chief of investment research at Nationwide, in a note. Nvidia alone accounted for 32%. Those five stocks now account for a record 27% of the index&#39;s market capitalization, he noted.</p><p>Looking at the average maximum drawdown at the individual member level, the S&amp;P 500 has already reached correction territory at -15%, Schwab&#39;s Gordon noted, while the small-cap Russell 2000 RUTand Nasdaq are well into bear market territory, at -28% and -37%, respectively.</p><p>Indeed, such poor market breadth, or measures of how many stocks are participating in an index&#39;s move, explains why CNN&#39;s Fear and Greed index now stands in &#34;fear&#34; territory, according to analysts at Bespoke Investment Group.</p><p>To be clear, it isn&#39;t market concentration itself that is particularly worrying, Gordon said. Market watchers often point out that a handful of stocks often tend to account for outsize gains during rallies. Instead, it&#39;s when that handful of stocks are rising and the rest of the market is flailing that concerns begin to rise.</p><p>A similar thing happened in 2021, setting up the 2022 bear market, he noted. While that doesn&#39;t mean history will repeat, investors need to stay vigilant.</p><p>Signs the economy has hit a bit of a &#34;soft patch&#34; help explain the weakness for a broad part of the market, he said. Annualized U.S. gross domestic product growth in the first quarter was revised down to a tepid 1.3% from an initial estimate of 1.6%. While nonfarm payrolls data are running strong, there are signs of a continued post-COVID &#34;normalization&#34; of the labor market. The services sector looks more resilient than manufacturing.</p><p>Such softness may explain why cyclical sectors energy and financials led the S&amp;P 500 to the downside this week, down 2% and 2.3%, respectively.</p><p>Gordon doesn&#39;t look for the bottom to fall out of the economy, but sees the market facing a test.</p><p>The market has gone through a relatively aggressive cost-cutting cycle and is now waiting for revenue growth to kick back in. If that doesn&#39;t happen as breadth breaks down, the market is then vulnerable to a correction, he said.</p></body></html>","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>As Nvidia Soars, Stock Market's Deflated Laggards Spark Concern</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\">\nAs Nvidia Soars, Stock Market's Deflated Laggards Spark Concern\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-06-16 09:19</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>America may love a winner, but it&#39;s the losers - and there are lots of them - that are starting to attract attention when it comes to the stock market.</p><p>&#34;I think at the megacap level, it&#39;s really just a momentum story that&#39;s been in place this year. I think the bigger story is under the surface,&#34; Kevin Gordon, senior investment strategist at Charles Schwab, told MarketWatch in a phone interview.</p><p>That momentum story saw Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a>, playing catch-up with artificial-intelligence chip maker Nvidia Corp. <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a>, put on another 9% gain this week. Apple Inc. <a href=\"https://laohu8.com/S/AAPL.UK\">$(AAPL.UK)$</a> rallied over 7% after unveiling its &#34;Apple Intelligence&#34; aspirations, leading it to jockey with Microsoft Corp. <a href=\"https://laohu8.com/S/MSFT\">$(MSFT)$</a> for the most-valuable company crown.</p><p>But outside a handful of megacap winners, the market is struggling. That handful of heavyweight winners account for a growing share of winners in the market-cap weighted S&amp;P 500 index SPX and Nasdaq Composite COMP. The S&amp;P 500 has rallied another 2.9% so far in June, bringing its year-to-date gain to 13.9%.</p><p>The equalweight version of the S&amp;P 500, which as the name implies gives the same weighting to each of its components, is down 0.4% in June and has gained just 4.4% year to date. The more cyclically oriented and, importantly, price-weighted Dow Jones Industrial Average DJIA also notably lags behind the cap-weighted indexes, down 0.3% in June and up just 2.4% in the year to date.</p><p>The S&amp;P 500 hit record highs despite less than half of members trading above their 50-day moving average, and the five largest stocks accounting for half of the year-to-date gain, noted Mark Hackett, chief of investment research at Nationwide, in a note. Nvidia alone accounted for 32%. Those five stocks now account for a record 27% of the index&#39;s market capitalization, he noted.</p><p>Looking at the average maximum drawdown at the individual member level, the S&amp;P 500 has already reached correction territory at -15%, Schwab&#39;s Gordon noted, while the small-cap Russell 2000 RUTand Nasdaq are well into bear market territory, at -28% and -37%, respectively.</p><p>Indeed, such poor market breadth, or measures of how many stocks are participating in an index&#39;s move, explains why CNN&#39;s Fear and Greed index now stands in &#34;fear&#34; territory, according to analysts at Bespoke Investment Group.</p><p>To be clear, it isn&#39;t market concentration itself that is particularly worrying, Gordon said. Market watchers often point out that a handful of stocks often tend to account for outsize gains during rallies. Instead, it&#39;s when that handful of stocks are rising and the rest of the market is flailing that concerns begin to rise.</p><p>A similar thing happened in 2021, setting up the 2022 bear market, he noted. While that doesn&#39;t mean history will repeat, investors need to stay vigilant.</p><p>Signs the economy has hit a bit of a &#34;soft patch&#34; help explain the weakness for a broad part of the market, he said. Annualized U.S. gross domestic product growth in the first quarter was revised down to a tepid 1.3% from an initial estimate of 1.6%. While nonfarm payrolls data are running strong, there are signs of a continued post-COVID &#34;normalization&#34; of the labor market. The services sector looks more resilient than manufacturing.</p><p>Such softness may explain why cyclical sectors energy and financials led the S&amp;P 500 to the downside this week, down 2% and 2.3%, respectively.</p><p>Gordon doesn&#39;t look for the bottom to fall out of the economy, but sees the market facing a test.</p><p>The market has gone through a relatively aggressive cost-cutting cycle and is now waiting for revenue growth to kick back in. If that doesn&#39;t happen as breadth breaks down, the market is then vulnerable to a correction, he said.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","SPXU":"三倍做空标普500ETF","BK4577":"网络游戏","BK4501":"段永平概念","IVV":"标普500指数ETF","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4579":"人工智能","BK4588":"碎股","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","VOO":"Vanguard标普500ETF","BK4141":"半导体产品","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","SPY":"标普500ETF","LU0056508442.USD":"贝莱德世界科技基金A2","BK4551":"寇图资本持仓","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0171293334.USD":"贝莱德英国基金A2","LU0109392836.USD":"富兰克林科技股A","UPRO":"三倍做多标普500ETF","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4529":"IDC概念","SDS":"两倍做空标普500ETF","OEF":"标普100指数ETF-iShares","BK4528":"SaaS概念","MSFT":"微软",".SPX":"S&P 500 Index","OEX":"标普100","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","SH":"标普500反向ETF","SSO":"两倍做多标普500ETF","BK4571":"数字音乐概念","LU0149725797.USD":"汇丰美国股市经济规模基金","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","BK4585":"ETF&股票定投概念","AAPL":"苹果","BK4507":"流媒体概念","BK4576":"AR","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","NVDA":"英伟达","BK4575":"芯片概念","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","BK4587":"ChatGPT概念"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2443595292","content_text":"America may love a winner, but it's the losers - and there are lots of them - that are starting to attract attention when it comes to the stock market.\"I think at the megacap level, it's really just a momentum story that's been in place this year. I think the bigger story is under the surface,\" Kevin Gordon, senior investment strategist at Charles Schwab, told MarketWatch in a phone interview.That momentum story saw Apple Inc. $(AAPL)$, playing catch-up with artificial-intelligence chip maker Nvidia Corp. $(NVDA)$, put on another 9% gain this week. Apple Inc. $(AAPL.UK)$ rallied over 7% after unveiling its \"Apple Intelligence\" aspirations, leading it to jockey with Microsoft Corp. $(MSFT)$ for the most-valuable company crown.But outside a handful of megacap winners, the market is struggling. That handful of heavyweight winners account for a growing share of winners in the market-cap weighted S&P 500 index SPX and Nasdaq Composite COMP. The S&P 500 has rallied another 2.9% so far in June, bringing its year-to-date gain to 13.9%.The equalweight version of the S&P 500, which as the name implies gives the same weighting to each of its components, is down 0.4% in June and has gained just 4.4% year to date. The more cyclically oriented and, importantly, price-weighted Dow Jones Industrial Average DJIA also notably lags behind the cap-weighted indexes, down 0.3% in June and up just 2.4% in the year to date.The S&P 500 hit record highs despite less than half of members trading above their 50-day moving average, and the five largest stocks accounting for half of the year-to-date gain, noted Mark Hackett, chief of investment research at Nationwide, in a note. Nvidia alone accounted for 32%. Those five stocks now account for a record 27% of the index's market capitalization, he noted.Looking at the average maximum drawdown at the individual member level, the S&P 500 has already reached correction territory at -15%, Schwab's Gordon noted, while the small-cap Russell 2000 RUTand Nasdaq are well into bear market territory, at -28% and -37%, respectively.Indeed, such poor market breadth, or measures of how many stocks are participating in an index's move, explains why CNN's Fear and Greed index now stands in \"fear\" territory, according to analysts at Bespoke Investment Group.To be clear, it isn't market concentration itself that is particularly worrying, Gordon said. Market watchers often point out that a handful of stocks often tend to account for outsize gains during rallies. Instead, it's when that handful of stocks are rising and the rest of the market is flailing that concerns begin to rise.A similar thing happened in 2021, setting up the 2022 bear market, he noted. While that doesn't mean history will repeat, investors need to stay vigilant.Signs the economy has hit a bit of a \"soft patch\" help explain the weakness for a broad part of the market, he said. Annualized U.S. gross domestic product growth in the first quarter was revised down to a tepid 1.3% from an initial estimate of 1.6%. While nonfarm payrolls data are running strong, there are signs of a continued post-COVID \"normalization\" of the labor market. The services sector looks more resilient than manufacturing.Such softness may explain why cyclical sectors energy and financials led the S&P 500 to the downside this week, down 2% and 2.3%, respectively.Gordon doesn't look for the bottom to fall out of the economy, but sees the market facing a test.The market has gone through a relatively aggressive cost-cutting cycle and is now waiting for revenue growth to kick back in. If that doesn't happen as breadth breaks down, the market is then vulnerable to a correction, he said.","news_type":1},"isVote":1,"tweetType":1,"viewCount":7,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":316803680788736,"gmtCreate":1718363415941,"gmtModify":1718610135081,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Investing in Nvidia: A Strategic Opportunity Nvidia Corporation, a leader in graphics processing units (GPUs) and artificial intelligence (AI) technology, presents a compelling investment opportunity. As the technological landscape evolves, Nvidia is positioned at the forefront of several high-growth sectors, making it a robust candidate for investors looking for long-term value. Here’s why investing in Nvidia could be a strategic move. 1. Dominance in the GPU Market Nvidia’s GPUs are the gold standard in the industry, particularly in gaming, professional visualization, data centers, and automotive markets. The company’s flagship product line, the GeForce RTX series, continues to set benchmarks for performance and innovation. These GPUs are not only critical for high-end gaming but also fo","listText":"Investing in Nvidia: A Strategic Opportunity Nvidia Corporation, a leader in graphics processing units (GPUs) and artificial intelligence (AI) technology, presents a compelling investment opportunity. As the technological landscape evolves, Nvidia is positioned at the forefront of several high-growth sectors, making it a robust candidate for investors looking for long-term value. Here’s why investing in Nvidia could be a strategic move. 1. Dominance in the GPU Market Nvidia’s GPUs are the gold standard in the industry, particularly in gaming, professional visualization, data centers, and automotive markets. The company’s flagship product line, the GeForce RTX series, continues to set benchmarks for performance and innovation. These GPUs are not only critical for high-end gaming but also fo","text":"Investing in Nvidia: A Strategic Opportunity Nvidia Corporation, a leader in graphics processing units (GPUs) and artificial intelligence (AI) technology, presents a compelling investment opportunity. As the technological landscape evolves, Nvidia is positioned at the forefront of several high-growth sectors, making it a robust candidate for investors looking for long-term value. Here’s why investing in Nvidia could be a strategic move. 1. Dominance in the GPU Market Nvidia’s GPUs are the gold standard in the industry, particularly in gaming, professional visualization, data centers, and automotive markets. The company’s flagship product line, the GeForce RTX series, continues to set benchmarks for performance and innovation. These GPUs are not only critical for high-end gaming but also fo","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/316803680788736","isVote":1,"tweetType":1,"viewCount":357,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":318182815903808,"gmtCreate":1718715739028,"gmtModify":1718715747499,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;","listText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;","text":"$NVIDIA Corp(NVDA)$","images":[{"img":"https://community-static.tradeup.com/news/0daaf317f247a6cb0e0d527b1504d6af","width":"648","height":"1088"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/318182815903808","isVote":1,"tweetType":1,"viewCount":99,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":316442092474384,"gmtCreate":1718284093144,"gmtModify":1718284096903,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/316442092474384","repostId":"2443673507","repostType":2,"isVote":1,"tweetType":1,"viewCount":55,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":316109073809464,"gmtCreate":1718204776247,"gmtModify":1718204780855,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/316109073809464","repostId":"1182932632","repostType":4,"repost":{"id":"1182932632","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1718202519,"share":"https://www.laohu8.com/m/news/1182932632?lang=&edition=full","pubTime":"2024-06-12 22:28","market":"us","language":"en","title":"TSMC Jumps 5% Surpassing Berkshire in Market Value","url":"https://stock-news.laohu8.com/highlight/detail?id=1182932632","media":"Tiger Newspress","summary":"Semiconductor stocks gained in morning trading. TSMC rose 6%; Nvidia rose 5%; Micron rose 4.3%; Arm rose 4%; ASML rose 3.8%; Super Micro Computer rose 3.7%; Marvell rose 3%; Qualcomm rose 2.5%.ASML has gotten the green light to build a new campus on a large piece of land next to Eindhoven Airport. The Eindhoven city council approved the mayor and aldermen’s plan for the expansion on Tuesday, NOS reports.ASML will get around 50 hectares at its disposal. The company, which currently employs around","content":"<html><head></head><body><p>TSMC shares rose 5%, giving it a market valuation of $903B. Berkshire&#39;s market capitalization stood at $890B, falling behind TSMC.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/86865cbd1b26c0d1d50173ae36da9625\" tg-width=\"821\" tg-height=\"420\"/></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/664516bc629967f334e2ae8a09fb02c7\" tg-width=\"822\" tg-height=\"418\"/></p><p>Semiconductor stocks gained in morning trading. Nvidia rose 5%; Micron rose 4.3%; Arm rose 4%; ASML rose 3.8%; Super Micro Computer rose 3.7%; Marvell rose 3%; Qualcomm rose 2.5%.</p><p><strong>ASML</strong> has gotten the green light to build a new campus on a large piece of land next to Eindhoven Airport. The Eindhoven city council approved the mayor and aldermen’s plan for the expansion on Tuesday, NOS reports.</p><p style=\"text-align: start;\">ASML will get around 50 hectares at its disposal. The company, which currently employs around 23,000 people in the Netherlands, wants to build a campus in Eindhoven with around 20,000 extra jobs.</p><p></p></body></html>","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>TSMC Jumps 5% Surpassing Berkshire in Market Value</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\">\nTSMC Jumps 5% Surpassing Berkshire in Market Value\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2024-06-12 22:28</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>TSMC shares rose 5%, giving it a market valuation of $903B. Berkshire&#39;s market capitalization stood at $890B, falling behind TSMC.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/86865cbd1b26c0d1d50173ae36da9625\" tg-width=\"821\" tg-height=\"420\"/></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/664516bc629967f334e2ae8a09fb02c7\" tg-width=\"822\" tg-height=\"418\"/></p><p>Semiconductor stocks gained in morning trading. Nvidia rose 5%; Micron rose 4.3%; Arm rose 4%; ASML rose 3.8%; Super Micro Computer rose 3.7%; Marvell rose 3%; Qualcomm rose 2.5%.</p><p><strong>ASML</strong> has gotten the green light to build a new campus on a large piece of land next to Eindhoven Airport. The Eindhoven city council approved the mayor and aldermen’s plan for the expansion on Tuesday, NOS reports.</p><p style=\"text-align: start;\">ASML will get around 50 hectares at its disposal. The company, which currently employs around 23,000 people in the Netherlands, wants to build a campus in Eindhoven with around 20,000 extra jobs.</p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"QCOM":"高通","KLAC":"科磊","TSM":"台积电","NVDA":"英伟达","WDC":"西部数据","MU":"美光科技","LRCX":"拉姆研究","SMCI":"超微电脑","AMD":"美国超微公司"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1182932632","content_text":"TSMC shares rose 5%, giving it a market valuation of $903B. Berkshire's market capitalization stood at $890B, falling behind TSMC.Semiconductor stocks gained in morning trading. Nvidia rose 5%; Micron rose 4.3%; Arm rose 4%; ASML rose 3.8%; Super Micro Computer rose 3.7%; Marvell rose 3%; Qualcomm rose 2.5%.ASML has gotten the green light to build a new campus on a large piece of land next to Eindhoven Airport. The Eindhoven city council approved the mayor and aldermen’s plan for the expansion on Tuesday, NOS reports.ASML will get around 50 hectares at its disposal. The company, which currently employs around 23,000 people in the Netherlands, wants to build a campus in Eindhoven with around 20,000 extra jobs.","news_type":1},"isVote":1,"tweetType":1,"viewCount":41,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":316090817249352,"gmtCreate":1718200430985,"gmtModify":1718200432937,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/316090817249352","repostId":"316163336212512","repostType":1,"repost":{"id":316163336212512,"gmtCreate":1718195939460,"gmtModify":1718199002304,"author":{"id":"3527667667103859","authorId":"3527667667103859","name":"TigerEvents","avatar":"https://community-static.tradeup.com/news/c266ef25181ace18bec1262357bbe1a8","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"title":"[10th Anniv] How to Prove You're a True Tiger Fan?","htmlText":"As we celebrate the Tigers' 10th anniversary, we want to hear from our true fans! Over the past decade, we've experienced market highs and lows, growing and learning together. Your support and trust have been our greatest treasures.Now, we're inviting you to show your true Tiger spirit! Prove you're a genuine Tiger fan with one sentence. Share your most memorable moments with Tiger Brokers or post some jokes or memes that only a seasoned Tiger would understand. How to ParticipateShare this post and tag at least one friend, inviting them to join the eventsLeave a comment below with one sentence that proves you're a true Tiger fan, along with your favorite Tiger-related memories, jokes, memes, or giveaways.Event DurationJune 12, 2024 - June 19, 2024PrizesAll Tigers who leave your comments in","listText":"As we celebrate the Tigers' 10th anniversary, we want to hear from our true fans! Over the past decade, we've experienced market highs and lows, growing and learning together. Your support and trust have been our greatest treasures.Now, we're inviting you to show your true Tiger spirit! Prove you're a genuine Tiger fan with one sentence. Share your most memorable moments with Tiger Brokers or post some jokes or memes that only a seasoned Tiger would understand. How to ParticipateShare this post and tag at least one friend, inviting them to join the eventsLeave a comment below with one sentence that proves you're a true Tiger fan, along with your favorite Tiger-related memories, jokes, memes, or giveaways.Event DurationJune 12, 2024 - June 19, 2024PrizesAll Tigers who leave your comments in","text":"As we celebrate the Tigers' 10th anniversary, we want to hear from our true fans! Over the past decade, we've experienced market highs and lows, growing and learning together. Your support and trust have been our greatest treasures.Now, we're inviting you to show your true Tiger spirit! Prove you're a genuine Tiger fan with one sentence. Share your most memorable moments with Tiger Brokers or post some jokes or memes that only a seasoned Tiger would understand. How to ParticipateShare this post and tag at least one friend, inviting them to join the eventsLeave a comment below with one sentence that proves you're a true Tiger fan, along with your favorite Tiger-related memories, jokes, memes, or giveaways.Event DurationJune 12, 2024 - June 19, 2024PrizesAll Tigers who leave your comments in","images":[{"img":"https://community-static.tradeup.com/news/875e0137c192d0ca7f538d4c3a4ec929","width":"1028","height":"870"}],"top":1,"highlighted":2,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/316163336212512","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":133,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":316090699870288,"gmtCreate":1718200410046,"gmtModify":1718200414024,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"A new tiger pub","listText":"A new tiger pub","text":"A new tiger pub","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/316090699870288","isVote":1,"tweetType":1,"viewCount":42,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":315875970662656,"gmtCreate":1718149494467,"gmtModify":1718156376914,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$</a>&nbsp;","listText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$</a>&nbsp;","text":"$NVIDIA Corp(NVDA)$","images":[{"img":"https://community-static.tradeup.com/news/f5e465e489be0bbea8907d953aab9c45"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/315875970662656","repostId":"2442706389","repostType":2,"repost":{"id":"2442706389","pubTimestamp":1718100083,"share":"https://www.laohu8.com/m/news/2442706389?lang=&edition=full","pubTime":"2024-06-11 18:01","market":"hk","language":"en","title":"25 Reasons to Buy Nvidia Stock Now","url":"https://stock-news.laohu8.com/highlight/detail?id=2442706389","media":"MotleyFool","summary":"Nvidia (NASDAQ: NVDA) stock has been a superb performer over the short and long terms. The artificial intelligence (AI) chip leader held its initial public offering (IPO) in January 1999, six years af","content":"<html><head></head><body><p><strong>Nvidia</strong> (NASDAQ: NVDA) stock has been a superb performer over the short and long terms. The artificial intelligence (AI) chip leader held its initial public offering (IPO) in January 1999, six years after the company was founded. In honor of Nvidia stock turning 25 years old earlier this year, below are 25 reasons -- in no particular order -- to buy it.</p><p>As background, Nvidia has four market platforms: data center, gaming, professional visualization, and auto &amp; robotics. Data center is its largest (accounting for 87% of revenue in its most recent quarter) and fastest growing due to surging adoption of AI, particularly generative AI. Generative AI exploded onto the scene in late 2022 with the release of the ChatGPT chatbot.</p><h2 id=\"id_2427446147\">1. Company is run by a founder</h2><p>Nvidia CEO Jensen Huang was one of the company&#39;s three co-founders. Studies show that stocks of founder-led companies tend to outperform others over the long term.</p><h2 id=\"id_3641146766\">2. Founder-CEO has much skin in the game</h2><p>Huang owns about 868 million shares of Nvidia stock following Friday&#39;s 10-for-1 stock split (discussed in No. 6), as of the most recent available data. This stake is worth about $105 billion, as of the stock&#39;s closing price on June 7. Given this massive stake, investors can be sure Huang&#39;s interest is aligned with their interests.</p><h2 id=\"id_3893609282\">3. CFO&#39;s huge stock holdings suggest much confidence in Nvidia&#39;s future</h2><p>CFO Colette Kress owns 6.43 million shares of Nvidia stock following Friday&#39;s 10-for-1 stock split (discussed in No. 6). These shares were worth about $777 million, as of June 7. A CFO probably has the best handle of everyone in a company -- including its CEO -- on its financial performance at any given time. So, it seems safe to say that Kress is very optimistic about Nvidia&#39;s growth prospects.</p><h2 id=\"id_221237880\">4. Nvidia stock&#39;s longer-term performance is phenomenal</h2><p>Over the last 10 years, Nvidia stock has returned 25,431% through June 7. That&#39;s more than 100 times the <strong>S&amp;P 500</strong> index&#39;s return of 230%. Put another way, a $1,000 investment in Nvidia stock a decade ago would now be worth more than $250,000.</p><p>A stock&#39;s past performance is no guarantee of its future performance. However, a stock&#39;s <em>long-term</em> performance often reflects the ability of a company&#39;s top management to establish and implement successful strategies.</p><h2 id=\"id_163954137\">5. AI market is projected to continue to grow briskly</h2><p>In 2024, the global AI market is projected to reach revenue of $184 billion, and have a compound annual growth rate (CAGR) of 28.5% through 2030, when it will be worth an estimated $826.7 billion, according to Statista.</p><p>This is a huge positive for Nvidia, whose graphics processing unit (GPU) chips and related products and services are used for training and deploying AI applications.</p><h2 id=\"id_3619882405\">6. Nvidia&#39;s 10-for-1 stock split just occured on June 7</h2><p>On Friday, June 7, Nvidia stock split 10-for-1. Investors who owned the stock as of the day before received nine additional shares for each share they owned. The stock is scheduled to begin trading on a split-adjusted basis on Monday, June 10.</p><p>On Friday, Nvidia stock&#39;s closing price was $1,208.88, which means that its split-adjusted price was $120.89.</p><p>Potential benefits for investors of Nvidia&#39;s stock split include a boost in price from greater demand for shares, and a higher chance at being included on the <strong>Dow Jones Industrial Average </strong>index.</p><h2 id=\"id_3347388\">7. The company dominates the data center AI chip market</h2><p>It&#39;s widely estimated that Nvidia has more than a 90% share of the market for AI GPU chips for data centers, and more than an 80% share of the overall data center AI chip market.</p><h2 id=\"id_515771282\">8. Data center AI chip market is projected to continue to grow like gangbusters</h2><p>In 2023, the global market for chips to accelerate AI processing in data centers was worth about $45 billion, according to an estimate by <strong>Advanced Micro Devices</strong> (NASDAQ: AMD) CEO Lisa Su. She projects this market will reach $400 billion in revenue by 2027, which equates to a blistering CAGR of 72.7%.</p><h2 id=\"id_2831449963\">9. Nvidia&#39;s data center business has strong competitive advantages</h2><p>Advanced Micro Devices (AMD) and <strong>Intel</strong> have recently entered Nvidia&#39;s turf -- AI-enabling GPUs for data centers. Investors shouldn&#39;t be overly concerned. Nvidia&#39;s competitive advantages don&#39;t only stem from its GPUs, but also its software, particularly CUDA, which has been used by millions of developers for many years. CUDA enables its GPUs to possess the parallel processing capabilities needed for accelerating general and AI computing.</p><h2 id=\"id_2832630844\">10. Its revenue is growing rapidly</h2><p>Nvidia&#39;s year-over-year revenue growth over the last four quarters starting with the most recent quarter: 262%, 265%, 206%, and 101%.</p><h2 id=\"id_1097692290\">11. Its profits are increasing even faster than revenue</h2><p>Nvidia&#39;s adjusted earnings per share (EPS) are growing faster than its revenue, which reflects its expanding profit margins. This dynamic is being driven by its highly profitable data center business growing faster than its other businesses. Here&#39;s the company&#39;s year-over-year adjusted EPS growth over the last four quarters starting with the most recent quarter: 461%, 486%, 593%, and 429%.</p><h2 id=\"id_3446198856\">12. Its free cash flow is also growing rapidly</h2><p>Nvidia&#39;s year-over-year free cash flow (FCF) growth over the last four quarters starting with the most recent quarter: 465%, 546%, N/A (FCF was negative in year-ago period), and 634%.</p><h2 id=\"id_1852546500\">13. Wall Street expects strong profit growth over the next 5 years</h2><p>As of June 7, Wall Street projects that Nvidia will grow adjusted EPS at an average annual rate of 46.5% over the next five years.</p><h2 id=\"id_466944881\">14. Nvidia nearly always beats Wall Street&#39;s expectations</h2><p>Nvidia nearly always beats Wall Street&#39;s quarterly earnings estimates -- and oftentimes, by a lot. In the prior four quarters, the company&#39;s adjusted EPS has exceeded the analyst consensus estimate by percentages ranging from 10% to 29%.</p><p>If this dynamic continues, Nvidia&#39;s CAGR over the next five years will be higher than the 46.5% that analysts now expect.</p><h2 id=\"id_3259973487\">15. The stock&#39;s valuation is reasonable</h2><p>At Friday&#39;s closing price, Nvidia stock is priced at 44.6 times forward estimated earnings. In a vacuum, this is a high valuation. But it&#39;s reasonable for a company that Wall Street expects to grow adjusted EPS 109% this fiscal year and at an average annual rate of 46.5% over the next five years. Moreover, analysts are likely underestimating its growth potential, as covered above.</p><h2 id=\"id_317966742\">16. It&#39;s much more profitable than its main competitors and peers</h2><table style=\"border-collapse:collapse;\"><tbody><tr><th style=\"text-align:left;\"><p>Company</p></th><th style=\"text-align:left;\"><p>GAAP Profit Margin (TTM)</p></th></tr><tr><td style=\"text-align:left;\"><p><strong>Nvidia</strong></p></td><td style=\"text-align:left;\"><p>53.4%</p></td></tr><tr><td style=\"text-align:left;\"><p><strong>Advanced Micro Devices</strong></p></td><td style=\"text-align:left;\"><p>4.9%</p></td></tr><tr><td style=\"text-align:left;\"><p><strong>Intel</strong></p></td><td style=\"text-align:left;\"><p>7.4%</p></td></tr><tr><td style=\"text-align:left;\"><p><strong>Qualcomm</strong></p></td><td style=\"text-align:left;\"><p>23%</p></td></tr><tr><td style=\"text-align:left;\"><p><strong>Broadcom</strong></p></td><td style=\"text-align:left;\"><p>29.9%</p></td></tr></tbody></table><p>List is not all-inclusive. Data sources: YCharts and finviz.com. GAAP = generally accepted accounting principles. TTM= trailing 12 months.</p><h2 id=\"id_1531776279\">17. It&#39;s reportedly forming a custom chip business unit</h2><p>Sources have reported and signs suggest that Nvidia is forming a custom chip business unit so that it can capture some of the custom chip development work for big tech companies that currently goes to chipmakers such as <strong>Broadcom</strong>. The new unit will reportedly help companies design custom chips for AI and other applications.</p><h2 id=\"id_3462699278\">18. It&#39;s the largest supplier of graphics cards for gaming</h2><p>Gaming is Nvidia&#39;s second largest market platform, accounting for 10% of its revenue in its most recent quarter. The company is the world&#39;s largest supplier of graphics cards for computer gaming. In the first quarter of 2024, it had an 88% share of the desktop discrete GPU market, according to Jon Peddie Research. AMD and Intel had a 12% and less than 1% share, respectively.</p><h2 id=\"id_3354675364\">19. PC gaming market is projected to continue its solid growth</h2><p>In 2023, the global personal computer (PC) gaming market generated about $80.3 billion in revenue, according to Statista, which projects this market will be worth $141.9 billion in 2028. That equates to a CAGR of about 12.1%.</p><h2 id=\"id_4157958139\">20. Nvidia generates some recurring revenue</h2><p>Nvidia has relatively recently begun launching software and service offerings that generate recurring revenue. In February, CFO Kress said that in fiscal Q4 the company&#39;s software and services offerings reached an annualized revenue run rate of $1 billion.</p><h2 id=\"id_618095145\">21. Its revenue should get a big boost when driverless vehicles become legal</h2><p>Nvidia&#39;s revenue should get a big boost when driverless vehicles become legal across the U.S. and world. Hundreds of vehicle manufacturers, tier 1 suppliers, and others are developing on the company&#39;s autonomous vehicle AI computing platform, DRIVE.</p><p>When Nvidia&#39;s partners use its DRIVE platform in production vehicles, they need to buy a DRIVE AI computer for each vehicle. Its big-name partners include luxury vehicle maker <strong>Mercedes-Benz</strong> and electric vehicle (EV) giant <strong>BYD</strong>.</p><h2 id=\"id_2331586739\">22. Its sovereign AI business has multibillion-dollar potential</h2><p>Nations and other sovereign entities have relatively recently begun using Nvidia&#39;s technology to build their own sovereign AI cloud services. The &#34;sovereign AI infrastructure market represents a multibillion-dollar opportunity over the next few years,&#34; CFO Kress said last November on the company&#39;s fiscal Q3 2024 earnings call.</p><h2 id=\"id_1602437602\">23. It just ramped up its robotics initiatives</h2><p>In March, Nvidia introduced it Project GR00T (Generalist Robot 00 Technology) AI foundation model for humanoid robots and major updates to its Isaac robotics platform.</p><h2 id=\"id_796644851\">24. Its balance sheet is in solid shape</h2><p>At the end of the last quarter, Nvidia had cash and cash equivalents of $7.6 billion and long-term debt of $8.5 billion.</p><h2 id=\"id_615842984\">25. Employes really like working for Nvidia</h2><p>On Glassdoor.com, Nvidia employees and former employees give the company an overall rating of 4.6 stars (on a scale of 1 to 5), as of June 7. Employee satisfaction is particularly important for companies in the technology realm, as there is a limited amount of top tech talent. Nvidia&#39;s rating is the highest of all the so-called Big Tech companies.</p><p></p></body></html>","source":"motleyfoolau_stock","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>25 Reasons to Buy Nvidia Stock Now</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\">\n25 Reasons to Buy Nvidia Stock Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-11 18:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2024/06/11/25-reasons-to-buy-nvidia-stock-now-usfeed/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia (NASDAQ: NVDA) stock has been a superb performer over the short and long terms. The artificial intelligence (AI) chip leader held its initial public offering (IPO) in January 1999, six years ...</p>\n\n<a href=\"https://www.fool.com.au/2024/06/11/25-reasons-to-buy-nvidia-stock-now-usfeed/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","BK7504":"锂钴概念","BK4579":"人工智能","BK4588":"碎股","BK4550":"红杉资本持仓","BK4141":"半导体产品","LU2458330169.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A\" (SGD) ACC","LU2458330243.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A-H1\" (SGDHDG) ACC","BK7095":"多种金属与采矿","BK4587":"ChatGPT概念","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4551":"寇图资本持仓","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","NVDA":"英伟达","LU0056508442.USD":"贝莱德世界科技基金A2","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4099":"汽车制造商","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0109392836.USD":"富兰克林科技股A","BK4529":"IDC概念","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","BK4515":"5G概念","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4585":"ETF&股票定投概念","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","BK4523":"印度概念","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","BK4575":"芯片概念","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","BK4566":"资本集团"},"source_url":"https://www.fool.com.au/2024/06/11/25-reasons-to-buy-nvidia-stock-now-usfeed/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2442706389","content_text":"Nvidia (NASDAQ: NVDA) stock has been a superb performer over the short and long terms. The artificial intelligence (AI) chip leader held its initial public offering (IPO) in January 1999, six years after the company was founded. In honor of Nvidia stock turning 25 years old earlier this year, below are 25 reasons -- in no particular order -- to buy it.As background, Nvidia has four market platforms: data center, gaming, professional visualization, and auto & robotics. Data center is its largest (accounting for 87% of revenue in its most recent quarter) and fastest growing due to surging adoption of AI, particularly generative AI. Generative AI exploded onto the scene in late 2022 with the release of the ChatGPT chatbot.1. Company is run by a founderNvidia CEO Jensen Huang was one of the company's three co-founders. Studies show that stocks of founder-led companies tend to outperform others over the long term.2. Founder-CEO has much skin in the gameHuang owns about 868 million shares of Nvidia stock following Friday's 10-for-1 stock split (discussed in No. 6), as of the most recent available data. This stake is worth about $105 billion, as of the stock's closing price on June 7. Given this massive stake, investors can be sure Huang's interest is aligned with their interests.3. CFO's huge stock holdings suggest much confidence in Nvidia's futureCFO Colette Kress owns 6.43 million shares of Nvidia stock following Friday's 10-for-1 stock split (discussed in No. 6). These shares were worth about $777 million, as of June 7. A CFO probably has the best handle of everyone in a company -- including its CEO -- on its financial performance at any given time. So, it seems safe to say that Kress is very optimistic about Nvidia's growth prospects.4. Nvidia stock's longer-term performance is phenomenalOver the last 10 years, Nvidia stock has returned 25,431% through June 7. That's more than 100 times the S&P 500 index's return of 230%. Put another way, a $1,000 investment in Nvidia stock a decade ago would now be worth more than $250,000.A stock's past performance is no guarantee of its future performance. However, a stock's long-term performance often reflects the ability of a company's top management to establish and implement successful strategies.5. AI market is projected to continue to grow brisklyIn 2024, the global AI market is projected to reach revenue of $184 billion, and have a compound annual growth rate (CAGR) of 28.5% through 2030, when it will be worth an estimated $826.7 billion, according to Statista.This is a huge positive for Nvidia, whose graphics processing unit (GPU) chips and related products and services are used for training and deploying AI applications.6. Nvidia's 10-for-1 stock split just occured on June 7On Friday, June 7, Nvidia stock split 10-for-1. Investors who owned the stock as of the day before received nine additional shares for each share they owned. The stock is scheduled to begin trading on a split-adjusted basis on Monday, June 10.On Friday, Nvidia stock's closing price was $1,208.88, which means that its split-adjusted price was $120.89.Potential benefits for investors of Nvidia's stock split include a boost in price from greater demand for shares, and a higher chance at being included on the Dow Jones Industrial Average index.7. The company dominates the data center AI chip marketIt's widely estimated that Nvidia has more than a 90% share of the market for AI GPU chips for data centers, and more than an 80% share of the overall data center AI chip market.8. Data center AI chip market is projected to continue to grow like gangbustersIn 2023, the global market for chips to accelerate AI processing in data centers was worth about $45 billion, according to an estimate by Advanced Micro Devices (NASDAQ: AMD) CEO Lisa Su. She projects this market will reach $400 billion in revenue by 2027, which equates to a blistering CAGR of 72.7%.9. Nvidia's data center business has strong competitive advantagesAdvanced Micro Devices (AMD) and Intel have recently entered Nvidia's turf -- AI-enabling GPUs for data centers. Investors shouldn't be overly concerned. Nvidia's competitive advantages don't only stem from its GPUs, but also its software, particularly CUDA, which has been used by millions of developers for many years. CUDA enables its GPUs to possess the parallel processing capabilities needed for accelerating general and AI computing.10. Its revenue is growing rapidlyNvidia's year-over-year revenue growth over the last four quarters starting with the most recent quarter: 262%, 265%, 206%, and 101%.11. Its profits are increasing even faster than revenueNvidia's adjusted earnings per share (EPS) are growing faster than its revenue, which reflects its expanding profit margins. This dynamic is being driven by its highly profitable data center business growing faster than its other businesses. Here's the company's year-over-year adjusted EPS growth over the last four quarters starting with the most recent quarter: 461%, 486%, 593%, and 429%.12. Its free cash flow is also growing rapidlyNvidia's year-over-year free cash flow (FCF) growth over the last four quarters starting with the most recent quarter: 465%, 546%, N/A (FCF was negative in year-ago period), and 634%.13. Wall Street expects strong profit growth over the next 5 yearsAs of June 7, Wall Street projects that Nvidia will grow adjusted EPS at an average annual rate of 46.5% over the next five years.14. Nvidia nearly always beats Wall Street's expectationsNvidia nearly always beats Wall Street's quarterly earnings estimates -- and oftentimes, by a lot. In the prior four quarters, the company's adjusted EPS has exceeded the analyst consensus estimate by percentages ranging from 10% to 29%.If this dynamic continues, Nvidia's CAGR over the next five years will be higher than the 46.5% that analysts now expect.15. The stock's valuation is reasonableAt Friday's closing price, Nvidia stock is priced at 44.6 times forward estimated earnings. In a vacuum, this is a high valuation. But it's reasonable for a company that Wall Street expects to grow adjusted EPS 109% this fiscal year and at an average annual rate of 46.5% over the next five years. Moreover, analysts are likely underestimating its growth potential, as covered above.16. It's much more profitable than its main competitors and peersCompanyGAAP Profit Margin (TTM)Nvidia53.4%Advanced Micro Devices4.9%Intel7.4%Qualcomm23%Broadcom29.9%List is not all-inclusive. Data sources: YCharts and finviz.com. GAAP = generally accepted accounting principles. TTM= trailing 12 months.17. It's reportedly forming a custom chip business unitSources have reported and signs suggest that Nvidia is forming a custom chip business unit so that it can capture some of the custom chip development work for big tech companies that currently goes to chipmakers such as Broadcom. The new unit will reportedly help companies design custom chips for AI and other applications.18. It's the largest supplier of graphics cards for gamingGaming is Nvidia's second largest market platform, accounting for 10% of its revenue in its most recent quarter. The company is the world's largest supplier of graphics cards for computer gaming. In the first quarter of 2024, it had an 88% share of the desktop discrete GPU market, according to Jon Peddie Research. AMD and Intel had a 12% and less than 1% share, respectively.19. PC gaming market is projected to continue its solid growthIn 2023, the global personal computer (PC) gaming market generated about $80.3 billion in revenue, according to Statista, which projects this market will be worth $141.9 billion in 2028. That equates to a CAGR of about 12.1%.20. Nvidia generates some recurring revenueNvidia has relatively recently begun launching software and service offerings that generate recurring revenue. In February, CFO Kress said that in fiscal Q4 the company's software and services offerings reached an annualized revenue run rate of $1 billion.21. Its revenue should get a big boost when driverless vehicles become legalNvidia's revenue should get a big boost when driverless vehicles become legal across the U.S. and world. Hundreds of vehicle manufacturers, tier 1 suppliers, and others are developing on the company's autonomous vehicle AI computing platform, DRIVE.When Nvidia's partners use its DRIVE platform in production vehicles, they need to buy a DRIVE AI computer for each vehicle. Its big-name partners include luxury vehicle maker Mercedes-Benz and electric vehicle (EV) giant BYD.22. Its sovereign AI business has multibillion-dollar potentialNations and other sovereign entities have relatively recently begun using Nvidia's technology to build their own sovereign AI cloud services. The \"sovereign AI infrastructure market represents a multibillion-dollar opportunity over the next few years,\" CFO Kress said last November on the company's fiscal Q3 2024 earnings call.23. It just ramped up its robotics initiativesIn March, Nvidia introduced it Project GR00T (Generalist Robot 00 Technology) AI foundation model for humanoid robots and major updates to its Isaac robotics platform.24. Its balance sheet is in solid shapeAt the end of the last quarter, Nvidia had cash and cash equivalents of $7.6 billion and long-term debt of $8.5 billion.25. Employes really like working for NvidiaOn Glassdoor.com, Nvidia employees and former employees give the company an overall rating of 4.6 stars (on a scale of 1 to 5), as of June 7. Employee satisfaction is particularly important for companies in the technology realm, as there is a limited amount of top tech talent. Nvidia's rating is the highest of all the so-called Big Tech companies.","news_type":1},"isVote":1,"tweetType":1,"viewCount":22,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":315578964848680,"gmtCreate":1718077072282,"gmtModify":1718082175721,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a> No","listText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a> No","text":"$Tesla Motors(TSLA)$ No","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/315578964848680","isVote":1,"tweetType":1,"viewCount":28,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":315405706428496,"gmtCreate":1718034794082,"gmtModify":1718035056668,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/315405706428496","repostId":"2442248812","repostType":2,"repost":{"id":"2442248812","pubTimestamp":1718033742,"share":"https://www.laohu8.com/m/news/2442248812?lang=&edition=full","pubTime":"2024-06-10 23:35","market":"sg","language":"en","title":"Nvidia: A $5 Trillion Market Cap Is Within Reach","url":"https://stock-news.laohu8.com/highlight/detail?id=2442248812","media":"seekingalpha","summary":"Nvidia continues to dominate the AI chips industry, expanding its market share to a staggering 88% in the GPU industry in calendar Q1 2024.The company continues to cement its position in the market, a","content":"<html><head></head><body><ul style=\"\"><li><p>Nvidia continues to dominate the AI chips industry, expanding its market share to a staggering 88% in the GPU industry in calendar Q1 2024.</p></li><li><p>The company continues to cement its position in the market, and its brand-new Blackwell platform will likely help it exercise even more pricing power.</p></li><li><p>Demand for GPUs is surging as recent news suggests that Taiwan Semiconductor is struggling to meet chip production needs.</p></li><li><p>My valuation analysis suggests that Nvidia&#39;s fair value is close to $5 trillion, which is 62% higher than its current market cap.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6b03877646adf7f8e7fd7cce2f119d47\" tg-width=\"750\" tg-height=\"500\"/></p><p>JasonDoiy</p><p></p><h2 id=\"id_1754069657\">Investment thesis</h2><p>My previous bullish thesis about NVIDIA (NASDAQ:NVDA) aged well, as the stock gained 37% since early March, by far outperforming the broader market. The company released its quarterly results a couple of weeks ago and several other developments happened as well, which I want to discuss in my new analysis.</p><p>The competition in GPU&#39;s looks dead after NVDA&#39;s market share in GPU moved closer to 90% after all the largest semiconductor stocks published their Q1 earnings. NVDA continues cementing its intact position in AI chipsets industry with the recent release of the Blackwell platform. This will likely be substantially higher priced than H100, meaning immense pricing power. The demand for AI chips will also likely remain higher for longer as technological companies continue their fierce fight and ramp up investments in data centers. Strong demand together with unmatched pricing power is a massive mix of catalysts to drive further revenue growth and profitability expansion.</p><p>The stock will see a 10-for-1 stock split today, which will highly likely help to attract new investors. I think that all these favorable factors will help NVDA its rally, as my valuation analysis indicates that the business&#39;s fair value is close to $5 trillion, representing a 62% upside potential. All in all, I reiterate my &#34;Strong Buy&#34; rating for NVDA.</p><h2 id=\"id_1549592395\">Recent developments</h2><p>Nvidia released its latest quarterly earnings on May 22, significantly surpassing consensus estimates. Revenue grew by 262% YoY and the adjusted EPS almost sextupled. Nvidia&#39;s latest earnings show accelerating momentum in the AI revolution, and the company is certainly the biggest beneficiary of this trend.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6815ffc3adebb23568b4675d57f3c664\" tg-width=\"579\" tg-height=\"200\"/></p><p>Seeking Alpha</p><p></p><p>I say that Nvidia is the greatest beneficiary of the AI-driven boom in demand for chips because after fiscal Q1 earnings release, the company became the world&#39;s number one semiconductor company by revenue on a TTM basis. In 2020 Nvidia was far from joining top-3 from revenue perspective, lagging far behind Broadcom (AVGO), Taiwan Semiconductor (TSM), and Intel (INTC).</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a6256a9c00b482fdf163d1d18b2eea13\" tg-width=\"635\" tg-height=\"490\"/></p><p>Data by YCharts</p><p></p><p>The operating margin more than doubled on a YoY basis, from 30% to 65%. Massive operating leverage allowed Nvidia to quadruple its levered free cash flow [FCF] in Q1, from $3 billion to $12 billion. As a result, Nvidia&#39;s total cash grew sequentially from $25.9 billion to $31.4 billion. Total debt of $11 billion is immaterial compared to the company&#39;s almost $3 trillion market cap.</p><p>Innovation is crucial in semiconductors and having more advanced technologies in GPU enabled NVDA to almost monopolize the industry. Therefore, another crucial bullish sign is that Nvidia&#39;s financial strength is far above its major GPU rivals, Intel and AMD (AMD). Intel is in a deep net debt position and has a below one covered ratio. AMD&#39;s balance sheet is much cleaner compared to INTC, but its cash pile is five times smaller than Nvidia&#39;s. Therefore, it is apparent that Nvidia has much more potential to reinvest in R&amp;D than rivals.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6c1c8634e928af2b8fbe523f732b4d19\" tg-width=\"640\" tg-height=\"378\"/></p><p>Seeking Alpha</p><p></p><p>And the company indeed converts its unparalleled financial position into new jaw-dropping products. At the GTC 2024 conference, Jensen Huang presented the new Blackwell chip family. According to the source, the new platform performs AI tasks at more than twice the speed of Nvidia&#39;s current Hopper chips, while using less energy and providing more bespoke flexibility. Analysts expect the new chip family to be around 40% pricier than the current range for H100. This indicates Nvidia&#39;s massive pricing power and that competitors&#39; offerings are nowhere near close to Blackwell in terms of technology. In my opinion, this new release helps in cementing Nvidia&#39;s leadership in GPU for AI. By the way, NVDA&#39;s market share in the GPU add-in-board market expanded to a staggering 88% after calendar Q1 2024, indicating that the competition is likely dead, in my opinion. That said, NVDA commands almost a 90% market share in the market, which is projected to reach $773 billion by 2032.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/901f9f7bc6b30de35165d6bcc3f332fc\" tg-width=\"409\" tg-height=\"370\"/></p><p>JPR</p><p></p><p>Any company&#39;s top line in most cases is driven by only two variables: the selling price and the selling volume. In the previous paragraph I described why pricing will be favorable for Nvidia, now let me talk about the demand side. As the fierce AI fight between the most technologically advanced companies continues, all hyperscalers are ramping up their investments in AI. It is widely known that Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL) all plan to invest hundreds of billions of dollars in building data centers across the world in the next ten years.</p><p>Also, there are other companies beyond this big three that boost the demand for Nvidia&#39;s GPUs. Elon Musk&#39;s xAI startup develops a large language model [LLM] called Grok. According to Mr. Musk, the LLM will require around 100,000 Nvidia&#39;s H100 chips to train. Another Elon Musk&#39;s company, Tesla (TSLA) also bets on AI heavily and its full-self driving [FSD] technology will also likely require 50,000 more H100 chips this year.</p><p>The fact that the demand for AI chips is strong is underscored by the information that Taiwan Semiconductor struggles to keep up with AI processor demand. Generative AI is a young technology and only scratches the surface, but it already helps people to save loads of hours per week to automate completing routine tasks. As generative AI pioneers continue investing billions in the technology, we can expect more sophisticated applications of AI-powered tools, which will help to &#34;accelerate every workload possible&#34;. We already see how AI capabilities are expanding to enterprise users&#39; world, which is evident from the Nvidia&#39;s partnership with SAP (SAP). The partnership aims to Accelerate Generative AI Adoption Across Enterprise Applications Powering Global Industries.</p><p>The last, but not least, highly likely strong positive catalyst is a 10-for-1 split. When a stock trades at such a high price per share, it limits the ability of some low-deposit retail investors to buy it. Therefore, splitting the current above-$1000 share by ten times will likely help attract more investors. Trading is expected to commence on a split-adjusted basis at the open on June 10.</p><h2 id=\"id_1437434562\">Valuation update</h2><p>As usual, let me start with looking at valuation ratios. NVDA traditionally has the lowest possible &#34;F&#34; valuation grade for Seeking Alpha Quant because its multiples are far above the sector median. On the other hand, NVDA is a company with unique positioning in the AI revolution. Therefore, comparing to the sector median is not fair enough. It is better to look at NVDA&#39;s current multiples compared to historical ones. From this perspective, the stock looks attractively valued. Moreover, from the P/E and P/Cash flow ratios perspective, NVDA looks notably cheaper than AMD. I am not including INTC in my comparison of valuation ratios because one of the above screenshots suggests that its market share in GPUs is close to zero, meaning that at the moment it cannot be considered a significant player in the most thriving segment of the semiconductor industry.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c2bb9533c3421195ed6714987fc7b78e\" tg-width=\"571\" tg-height=\"479\"/></p><p>Seeking Alpha</p><p></p><p>The upside potential that I forecasted in the previous thesis was 34%, meaning that the stock surpassed the target and I have to update my discounted cash flow [DCF] model in line with the changing landscape.</p><p>I am not relying on consensus forecasts projecting a 14% CAGR for the topline. I think that this CAGR is unfairly low because the GPU market is projected to compound with a 31.5% CAGR by 2032.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/375e2249196fa4d94d712ce84b4c1421\" tg-width=\"635\" tg-height=\"424\"/></p><p>Data by YCharts</p><p></p><p>Of course, the rule of big numbers will apparently start working against NVDA sooner or later. Moreover, AMD and Intel continue to invest billions in R&amp;D, which means that there is a risk of losing market share. I think that implementing a 5% haircut to the industry CAGR is conservative enough for my base case scenario. That said, I use a 26.5% revenue CAGR. Moreover, let us not forget that NVDA will highly likely reinvest its substantial profits into new ventures and growth drivers will likely expand far beyond AI applications. NVDA&#39;s historically high ROIC gives high confidence in the company&#39;s ability to unlock new profitable revenue growth drivers over time.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d9582eb237580bb6ed67395abdb01a67\" tg-width=\"640\" tg-height=\"593\"/></p><p>Seeking Alpha</p><p></p><p>The TTM FCF ex-SBC margin is 31.6%. The level is high, and it will be quite difficult to expand at a rapid pace further. However, with NVDA&#39;s strong pricing power for GPUs, I think that a 50 basis points yearly FCF expansion is doable. My confidence in NVDA&#39;s ability to further expand its free cash flow margin is also backed by the EPS forecast from Wall Street analysts indicated above. The EPS is expected to triple over the next decade, which equals to a 12% CAGR for the bottom line.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4bd70763822aecc83c796be7377a6a09\" tg-width=\"640\" tg-height=\"249\"/></p><p>Author&#39;s calculations</p><p></p><p>With a 26.5% revenue CAGR, the business&#39;s fair value is not far from $5 trillion [in relative terms]. My fair value estimate is 62% higher than the current market cap, meaning that the upside potential is still immense.</p><p>NVDA bears will likely destroy me in comments for a 26.5% revenue CAGR. Therefore, I want to simulate the second scenario with a 10% haircut to the projected GPU industry growth, i.e., will use a 21.5% revenue CAGR. All other assumptions are untouched.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6148fc2d57ba3dc276a9f0ca2f709f1b\" tg-width=\"640\" tg-height=\"244\"/></p><p>Author&#39;s calculations</p><p></p><p>As shown in the second scenario, even with a 21.5% revenue CAGR, NVDA&#39;s fair capitalization is $3.4 trillion higher than the current one. There is a 16% upside potential left under my conservative scenario.</p><h2 id=\"id_2803968348\">Risks update</h2><p>NVDA holds a massive 88% market share in GPUs, which makes it almost a monopoly. The industry is thriving, and the chip war between the U.S. and China suggests that it is the matter of the national security. Therefore, there is a significant risk that NVDA will face much more antitrust scrutiny. According to Reuters, the U.S. already sets the stage for antitrust probes into all the hottest AI-exposed companies, including NVDA, MSFT, and OpenAI. While increased antitrust scrutiny does not equal disruption to the company&#39;s operations, it might cool the market&#39;s sentiment for NVDA, which will not help in the rally continuation.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/20f56801e2404bc93e90848d1eb1a6ed\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p></p><p>It seems that a $3 trillion market cap is a strong psychological level for the stock market, I would even call it a resistance level. None of the companies in history was able to grow its market cap far above $3 trillion, and I think that this might be a struggle for NVDA&#39;s share price over the short term. Share price growth is never linear and before heading towards a $4 trillion and $5 trillion market cap the stock might see a temporary pullback.</p><p>Potential adverse developments in the macro environment are always a risk for any business, and NVDA is not an exception. The global economic growth is expected to slow down in 2024, and energy prices are still relatively high as OPEC members extend oil output cuts into 2025.</p><p>Macroeconomic uncertainty might adversely affect the share price. However, from a fundamental perspective, I believe that NVDA&#39;s earnings might be protected from macroeconomic downturns because generative AI will likely help businesses boost productivity. Workloads optimization will help enterprises to drive down costs over the long term, which means that investments in generative AI capabilities will likely not suffer much from a potential economic downturn.</p><p>Since NVDA outsources manufacturing to TSM&#39;s foundries, complicated geopolitical condition around China-Taiwan is also a risk. However, I do not consider this risk substantial after Joe Biden&#39;s recent reminder that the U.S. might use its forces to protect Taiwan in case of a Chinese invasion. In my opinion, public support from the president of the country with the most powerful military in the world is a big factor why military conflict between China and Taiwan is very unlikely to happen.</p><h2 id=\"id_2868397744\">Bottom line</h2><p>To conclude, NVDA is still a &#34;Strong Buy&#34;. Bears might call me crazy, but I have high conviction that the stock is still significantly undervalued. There are numerous catalysts to remain firmly bullish, as the company is uniquely positioned in the AI chips industry. The company&#39;s revenue growth and profitability expansion amid the current AI boom is unmatched. This stellar growth is powered by vast pricing power and extremely high demand for the company&#39;s AI chips. NVDA continued cementing its technological edge by releasing its Blackwell platform, which will likely be priced 40% higher than current offerings. That said, NVDA is well positioned to absorb accelerated spending in data centers and supercomputers by giants like AMZN, MSFT, GOOGL, and TSLA.</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>Nvidia: A $5 Trillion Market Cap Is Within Reach</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\">\nNvidia: A $5 Trillion Market Cap Is Within Reach\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-10 23:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4698341-nvidia-stock-5-trillion-market-cap-is-within-reach><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia continues to dominate the AI chips industry, expanding its market share to a staggering 88% in the GPU industry in calendar Q1 2024.The company continues to cement its position in the market, ...</p>\n\n<a href=\"https://seekingalpha.com/article/4698341-nvidia-stock-5-trillion-market-cap-is-within-reach\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4550":"红杉资本持仓","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","BK4503":"景林资产持仓","BK4551":"寇图资本持仓","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","BK4099":"汽车制造商","LU2063271972.USD":"富兰克林创新领域基金","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","LU1282649067.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AMG\" (USD) INC A","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","LU1282649810.SGD":"Allianz Asian Multi Income Plus Cl AMg DIS H2-SGD","BK4529":"IDC概念","BK4528":"SaaS概念","BK4516":"特朗普概念","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","NVDA":"英伟达","BK4515":"5G概念","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU1244550221.USD":"FRANKLIN GLOBAL MULTI-ASSET  INCOME \"A\" (USDHEDGED) INC (M)","LU1861558580.USD":"日兴方舟颠覆性创新基金B","BK4507":"流媒体概念","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4525":"远程办公概念","LU1244550494.USD":"FRANKLIN GLOBAL MULTI-ASSET INCOME \"A\" (USDHEDGED) ACC","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","LU0541501648.USD":"ALLSPRING  EMERGING MARKETS EQUITY \"A\" (USD) ACC","BK4524":"宅经济概念","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU0889566641.SGD":"FTSF - Templeton Shariah Global Equity A Acc SGD","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","BK4077":"互动媒体与服务"},"source_url":"https://seekingalpha.com/article/4698341-nvidia-stock-5-trillion-market-cap-is-within-reach","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2442248812","content_text":"Nvidia continues to dominate the AI chips industry, expanding its market share to a staggering 88% in the GPU industry in calendar Q1 2024.The company continues to cement its position in the market, and its brand-new Blackwell platform will likely help it exercise even more pricing power.Demand for GPUs is surging as recent news suggests that Taiwan Semiconductor is struggling to meet chip production needs.My valuation analysis suggests that Nvidia's fair value is close to $5 trillion, which is 62% higher than its current market cap.JasonDoiyInvestment thesisMy previous bullish thesis about NVIDIA (NASDAQ:NVDA) aged well, as the stock gained 37% since early March, by far outperforming the broader market. The company released its quarterly results a couple of weeks ago and several other developments happened as well, which I want to discuss in my new analysis.The competition in GPU's looks dead after NVDA's market share in GPU moved closer to 90% after all the largest semiconductor stocks published their Q1 earnings. NVDA continues cementing its intact position in AI chipsets industry with the recent release of the Blackwell platform. This will likely be substantially higher priced than H100, meaning immense pricing power. The demand for AI chips will also likely remain higher for longer as technological companies continue their fierce fight and ramp up investments in data centers. Strong demand together with unmatched pricing power is a massive mix of catalysts to drive further revenue growth and profitability expansion.The stock will see a 10-for-1 stock split today, which will highly likely help to attract new investors. I think that all these favorable factors will help NVDA its rally, as my valuation analysis indicates that the business's fair value is close to $5 trillion, representing a 62% upside potential. All in all, I reiterate my \"Strong Buy\" rating for NVDA.Recent developmentsNvidia released its latest quarterly earnings on May 22, significantly surpassing consensus estimates. Revenue grew by 262% YoY and the adjusted EPS almost sextupled. Nvidia's latest earnings show accelerating momentum in the AI revolution, and the company is certainly the biggest beneficiary of this trend.Seeking AlphaI say that Nvidia is the greatest beneficiary of the AI-driven boom in demand for chips because after fiscal Q1 earnings release, the company became the world's number one semiconductor company by revenue on a TTM basis. In 2020 Nvidia was far from joining top-3 from revenue perspective, lagging far behind Broadcom (AVGO), Taiwan Semiconductor (TSM), and Intel (INTC).Data by YChartsThe operating margin more than doubled on a YoY basis, from 30% to 65%. Massive operating leverage allowed Nvidia to quadruple its levered free cash flow [FCF] in Q1, from $3 billion to $12 billion. As a result, Nvidia's total cash grew sequentially from $25.9 billion to $31.4 billion. Total debt of $11 billion is immaterial compared to the company's almost $3 trillion market cap.Innovation is crucial in semiconductors and having more advanced technologies in GPU enabled NVDA to almost monopolize the industry. Therefore, another crucial bullish sign is that Nvidia's financial strength is far above its major GPU rivals, Intel and AMD (AMD). Intel is in a deep net debt position and has a below one covered ratio. AMD's balance sheet is much cleaner compared to INTC, but its cash pile is five times smaller than Nvidia's. Therefore, it is apparent that Nvidia has much more potential to reinvest in R&D than rivals.Seeking AlphaAnd the company indeed converts its unparalleled financial position into new jaw-dropping products. At the GTC 2024 conference, Jensen Huang presented the new Blackwell chip family. According to the source, the new platform performs AI tasks at more than twice the speed of Nvidia's current Hopper chips, while using less energy and providing more bespoke flexibility. Analysts expect the new chip family to be around 40% pricier than the current range for H100. This indicates Nvidia's massive pricing power and that competitors' offerings are nowhere near close to Blackwell in terms of technology. In my opinion, this new release helps in cementing Nvidia's leadership in GPU for AI. By the way, NVDA's market share in the GPU add-in-board market expanded to a staggering 88% after calendar Q1 2024, indicating that the competition is likely dead, in my opinion. That said, NVDA commands almost a 90% market share in the market, which is projected to reach $773 billion by 2032.JPRAny company's top line in most cases is driven by only two variables: the selling price and the selling volume. In the previous paragraph I described why pricing will be favorable for Nvidia, now let me talk about the demand side. As the fierce AI fight between the most technologically advanced companies continues, all hyperscalers are ramping up their investments in AI. It is widely known that Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL) all plan to invest hundreds of billions of dollars in building data centers across the world in the next ten years.Also, there are other companies beyond this big three that boost the demand for Nvidia's GPUs. Elon Musk's xAI startup develops a large language model [LLM] called Grok. According to Mr. Musk, the LLM will require around 100,000 Nvidia's H100 chips to train. Another Elon Musk's company, Tesla (TSLA) also bets on AI heavily and its full-self driving [FSD] technology will also likely require 50,000 more H100 chips this year.The fact that the demand for AI chips is strong is underscored by the information that Taiwan Semiconductor struggles to keep up with AI processor demand. Generative AI is a young technology and only scratches the surface, but it already helps people to save loads of hours per week to automate completing routine tasks. As generative AI pioneers continue investing billions in the technology, we can expect more sophisticated applications of AI-powered tools, which will help to \"accelerate every workload possible\". We already see how AI capabilities are expanding to enterprise users' world, which is evident from the Nvidia's partnership with SAP (SAP). The partnership aims to Accelerate Generative AI Adoption Across Enterprise Applications Powering Global Industries.The last, but not least, highly likely strong positive catalyst is a 10-for-1 split. When a stock trades at such a high price per share, it limits the ability of some low-deposit retail investors to buy it. Therefore, splitting the current above-$1000 share by ten times will likely help attract more investors. Trading is expected to commence on a split-adjusted basis at the open on June 10.Valuation updateAs usual, let me start with looking at valuation ratios. NVDA traditionally has the lowest possible \"F\" valuation grade for Seeking Alpha Quant because its multiples are far above the sector median. On the other hand, NVDA is a company with unique positioning in the AI revolution. Therefore, comparing to the sector median is not fair enough. It is better to look at NVDA's current multiples compared to historical ones. From this perspective, the stock looks attractively valued. Moreover, from the P/E and P/Cash flow ratios perspective, NVDA looks notably cheaper than AMD. I am not including INTC in my comparison of valuation ratios because one of the above screenshots suggests that its market share in GPUs is close to zero, meaning that at the moment it cannot be considered a significant player in the most thriving segment of the semiconductor industry.Seeking AlphaThe upside potential that I forecasted in the previous thesis was 34%, meaning that the stock surpassed the target and I have to update my discounted cash flow [DCF] model in line with the changing landscape.I am not relying on consensus forecasts projecting a 14% CAGR for the topline. I think that this CAGR is unfairly low because the GPU market is projected to compound with a 31.5% CAGR by 2032.Data by YChartsOf course, the rule of big numbers will apparently start working against NVDA sooner or later. Moreover, AMD and Intel continue to invest billions in R&D, which means that there is a risk of losing market share. I think that implementing a 5% haircut to the industry CAGR is conservative enough for my base case scenario. That said, I use a 26.5% revenue CAGR. Moreover, let us not forget that NVDA will highly likely reinvest its substantial profits into new ventures and growth drivers will likely expand far beyond AI applications. NVDA's historically high ROIC gives high confidence in the company's ability to unlock new profitable revenue growth drivers over time.Seeking AlphaThe TTM FCF ex-SBC margin is 31.6%. The level is high, and it will be quite difficult to expand at a rapid pace further. However, with NVDA's strong pricing power for GPUs, I think that a 50 basis points yearly FCF expansion is doable. My confidence in NVDA's ability to further expand its free cash flow margin is also backed by the EPS forecast from Wall Street analysts indicated above. The EPS is expected to triple over the next decade, which equals to a 12% CAGR for the bottom line.Author's calculationsWith a 26.5% revenue CAGR, the business's fair value is not far from $5 trillion [in relative terms]. My fair value estimate is 62% higher than the current market cap, meaning that the upside potential is still immense.NVDA bears will likely destroy me in comments for a 26.5% revenue CAGR. Therefore, I want to simulate the second scenario with a 10% haircut to the projected GPU industry growth, i.e., will use a 21.5% revenue CAGR. All other assumptions are untouched.Author's calculationsAs shown in the second scenario, even with a 21.5% revenue CAGR, NVDA's fair capitalization is $3.4 trillion higher than the current one. There is a 16% upside potential left under my conservative scenario.Risks updateNVDA holds a massive 88% market share in GPUs, which makes it almost a monopoly. The industry is thriving, and the chip war between the U.S. and China suggests that it is the matter of the national security. Therefore, there is a significant risk that NVDA will face much more antitrust scrutiny. According to Reuters, the U.S. already sets the stage for antitrust probes into all the hottest AI-exposed companies, including NVDA, MSFT, and OpenAI. While increased antitrust scrutiny does not equal disruption to the company's operations, it might cool the market's sentiment for NVDA, which will not help in the rally continuation.Data by YChartsIt seems that a $3 trillion market cap is a strong psychological level for the stock market, I would even call it a resistance level. None of the companies in history was able to grow its market cap far above $3 trillion, and I think that this might be a struggle for NVDA's share price over the short term. Share price growth is never linear and before heading towards a $4 trillion and $5 trillion market cap the stock might see a temporary pullback.Potential adverse developments in the macro environment are always a risk for any business, and NVDA is not an exception. The global economic growth is expected to slow down in 2024, and energy prices are still relatively high as OPEC members extend oil output cuts into 2025.Macroeconomic uncertainty might adversely affect the share price. However, from a fundamental perspective, I believe that NVDA's earnings might be protected from macroeconomic downturns because generative AI will likely help businesses boost productivity. Workloads optimization will help enterprises to drive down costs over the long term, which means that investments in generative AI capabilities will likely not suffer much from a potential economic downturn.Since NVDA outsources manufacturing to TSM's foundries, complicated geopolitical condition around China-Taiwan is also a risk. However, I do not consider this risk substantial after Joe Biden's recent reminder that the U.S. might use its forces to protect Taiwan in case of a Chinese invasion. In my opinion, public support from the president of the country with the most powerful military in the world is a big factor why military conflict between China and Taiwan is very unlikely to happen.Bottom lineTo conclude, NVDA is still a \"Strong Buy\". Bears might call me crazy, but I have high conviction that the stock is still significantly undervalued. There are numerous catalysts to remain firmly bullish, as the company is uniquely positioned in the AI chips industry. The company's revenue growth and profitability expansion amid the current AI boom is unmatched. This stellar growth is powered by vast pricing power and extremely high demand for the company's AI chips. NVDA continued cementing its technological edge by releasing its Blackwell platform, which will likely be priced 40% higher than current offerings. That said, NVDA is well positioned to absorb accelerated spending in data centers and supercomputers by giants like AMZN, MSFT, GOOGL, and TSLA.","news_type":1},"isVote":1,"tweetType":1,"viewCount":93,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":315385921871952,"gmtCreate":1718029963868,"gmtModify":1718030318147,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$&nbsp;</a><v-v data-views=\"1\"></v-v> Back in stock market for Nvidia![Miser]&nbsp;&nbsp;","listText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$&nbsp;</a><v-v data-views=\"1\"></v-v> Back in stock market for Nvidia![Miser]&nbsp;&nbsp;","text":"$NVIDIA Corp(NVDA)$ Back in stock market for Nvidia![Miser]","images":[{"img":"https://community-static.tradeup.com/news/dd693f8eb0c439953d761dd46cb3251f","width":"648","height":"1088"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/315385921871952","isVote":1,"tweetType":1,"viewCount":30,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":323984366710856,"gmtCreate":1720103648173,"gmtModify":1720103654127,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Tesla is not just a car company<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;","listText":"Tesla is not just a car company<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;","text":"Tesla is not just a car company$Tesla Motors(TSLA)$","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/323984366710856","repostId":"2448485700","repostType":2,"repost":{"id":"2448485700","pubTimestamp":1720016512,"share":"https://www.laohu8.com/m/news/2448485700?lang=&edition=full","pubTime":"2024-07-03 22:21","market":"nz","language":"en","title":"Tesla: A Tech Company Disguised As An Automaker","url":"https://stock-news.laohu8.com/highlight/detail?id=2448485700","media":"seekingalpha","summary":"Tesla, Inc.'s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.Tesla is heavily in","content":"<html><head></head><body><ul style=\"\"><li><p>Tesla, Inc.&#39;s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.</p></li><li><p>Tesla is heavily investing into new technologies like Full Self Driving, robotics manufacturing solutions, and AI.</p></li><li><p>Tesla’s performances speak for themselves, in all aspects they are superior to your average automaker.</p></li><li><p>Tesla&#39;s risk-reward profile has the potential to generate a positive return to its shareholders.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/cfa24e1bbc8510dc5f7300426fe86f72\" tg-width=\"750\" tg-height=\"500\"/></p><h2 id=\"id_2797615779\">Executive Summary</h2><p><strong>Tesla, Inc.&#39;s</strong> (NASDAQ:TSLA) valuation is influenced by whether the firm will remain an automaker or it will evolve into a technology hardware company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.</p><p>At the present day, Tesla is undoubtedly an automobile company, with 1.8 billion vehicles sold in 2023. However, it&#39;s undeniable that the company is heavily investing in new technologies, among all in its Full Self-Driving (FSD) capabilities.</p><p>But Tesla tech doesn’t stop at autopilot, the firm is notably investing and developing robotics manufacturing solutions, currently implemented in its factories to improve efficiency and profitability, and obviously, they couldn&#39;t miss investing in AI technologies.</p><p>The management couldn’t stress more on their robotics and AI future during the 2024 Q1 earnings call:</p><blockquote><p><em>We should be thought of as an AI or robotics company. If you value Tesla as just like an auto company, it&#39;s just the wrong framework. If you ask the wrong question, then the right answer is impossible.</em></p></blockquote><p>Hence, the following analysis will try to correctly answer the question, by assessing how revenues, operating margins, and free cash flows will change in two different scenarios: one assuming Tesla remains an excellent EVs maker, and another one assuming Tesla will evolve into a technology hardware company leveraging on its vehicles to capitalize on its tech solutions.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/fc9286a29ca42bc706f52d06db8d2aca\" tg-width=\"640\" tg-height=\"360\"/></p><p>1st scenario (Source - BlackNote Investment)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aca0519df13da092833cbeac0e8db2ad\" tg-width=\"640\" tg-height=\"360\"/></p><p>2nd scenario (Source - BlackNote Investment)</p><p></p><p>Before deep diving into the valuation, it’s worth mentioning that, by any means, this analysis does not want to be a technical and detailed assessment of the technologies under development by Tesla.</p><p>Rather, it will treat the topic from a general point of view – using the reference “Technology solutions revenues” instead of discerning from “robotaxis,” “robotics,” and “AI revenues” – focusing on how Tesla’s value changes based on how investors identify the company.</p><p>Despite we agree that more detail is always preferable, in this case, we believe that excessively dwelling on single technologies not yet fully implemented won’t add value – or change the results of the valuation – if not increase the chance of committing mistakes.</p><h2 id=\"id_2426348479\">Tesla The Auto Company</h2><p>In 2023 Tesla&#39;s total revenues sat at $96.7 billion, an increase of 18.8%, significantly lower than the 58.8% median revenue growth rate investors were used to. However, it was still a good performance when compared to the y-o-y automobile industry growth rate of 14.1%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/1857fea1f33faf50ae47ccdc297607bf\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><p>As of the 2024 Q1, revenue declined (8.7)% q-o-q.</p><p>Leveraging on its battery and renewable energy know-how, Tesla is also active in the solar and energy storage business, which in 2023 accounted for 6.2% of revenues, equal to $6 billion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4b6222a41766445ed912b9a4099cf901\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><h3 id=\"id_4050956685\">Profitability Metrics</h3><p>The 2023 Tesla&#39;s operating margin was 9.2%, declining from the 12.1% and 16.8% operating margin registered in 2021 and 2022 respectively, but still better than the past decade&#39;s industry median value of 6.5%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/26d0e0e2d4bd26d01e9a7636eb728d5f\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><p>The total operating profit was $8.9 billion, registering a decrease of (34.9)% y-o-y, while in the latest Q1, the operating margin was at 5.5%, with the operating profit declining (56)% q-o-q.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6b0b9a2a6b087d2f3e5f08e6381c0b0c\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><p>Looking at free cash flows to the firm (FCFF), in 2023 the FCFF sat at $6.8 billion, equal to a FCFF margin of 7% - significantly better than the automobile industry’s 10Y median FCFF margin of 1.5% - continuing on the positive trend begun in 2019 when the company turned free cash flow positive.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a0148db04456865a84d8729d327d09df\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><h3 id=\"id_845981862\">Reinvestments &amp; Efficiency Ratios</h3><p>Over the past decade, Tesla has reinvested heavily into its business with the median reinvestment margin of Tesla standing at 6.8%, comprising net capital expenditures, acquisitions, and changes in working capital. When treating R&amp;D expenses as capital expenditures due to their long-term value generation, this figure adjusts to 11.2%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/52dc188915067bff34409fb14899b29f\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><p>The same adjusted reinvestment margin scored by the automobile industry over the past decade sits at only 4.5%.</p><p>In terms of efficiency on capital reinvested into the company, during the period 2013-2023, Tesla boasts a median sales to invested capital ratio of 2.56, more than doubling the industry median value of 1.16.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b9a5769ccd1d3acc9213797a7113122d\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - TIKR Terminal</p><p></p><h3 id=\"id_3240001027\">Tesla The Tech Company</h3><p>Tesla’s performances speak for themselves, in all aspects they are superior to your average automaker.</p><p>Despite the stumble in 2023 and the first half of 2024 – due to a weaker-than-expected EVs environment, which is tackling every automaker, not just Tesla – the firm is playing in a league of its own.</p><p>Tesla’s revenues are growing faster, they are more profitable, and more efficient with their capital investments, when compared to traditional companies in the automobile industry, all culminating in greater free cash flow generation.</p><p>Even if Tesla is still deriving the majority of its revenues from the sales of vehicles, it appears that treating the firm as a pure auto company is wrong in the first place, at least from a metric perspective.</p><p>Tesla is still – and likely will always be – highly influenced by automotive industry dynamics, as shown by the downturn in revenue growth rates following the 2023 deterioration of the EVs market.</p><p>But if the firm is undoubtedly an automobile company when it comes to revenue generation, in terms of profitability, reinvestment, and cash flow generation it is full-fledged a technology hardware company.</p><p>The 10Y median operating margin for a technology hardware company is 12.1%, while the 10Y median FCF margin is 8%.</p><p>Thanks to the technology in its EVs, Tesla was able to create a solid moat, resulting in greater revenue growth; selling its vehicles at a premium, improving profitability; and thanks to robotics to improve its factories&#39; efficiency, improving cash flow generation.</p><p>Here is an extract from the 2021 Q4 earnings call:</p><blockquote><p><em>From the hardware side, we are aggressively driving manufacturing innovations and operational efficiency to reduce cost. And with the rapid development of FSD, software-based profits will ultimately become a strong addition to the profits generated by selling hardware.</em></p></blockquote><h4 id=\"id_3171591836\">Industry Overview</h4><p>However, as said previously, Tesla will always be highly influenced by the automotive industry dynamics when it comes to selling its hardware, as without first selling its electric vehicles, Tesla cannot capitalize on its technologies.</p><p>With its $90.7 billion revenues from the EVs segment, tesla has established a decent presence in the automobile industry, representing 2.3% of the industry&#39;s total revenues of $3.86 trillion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/e9fb691d114cce49f0909ecd3c44642f\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>The automobile industry is highly competitive. Looking at the industry in its entirety, primary players consist of Volkswagen (OTCPK:VWAGY) with a 9.2% market share, Toyota (TM) with an 8% market share, and Ford (F) with a 4.6% market share.</p><p>In the EVs segment, Tesla’s main competitor is the Chinese conglomerate BYD, which despite boosting only an overall 2.1% market share, is the leading new energy vehicles automaker in China and is rapidly expanding its presence in overseas markets thanks to its low-price vehicles.</p><h4 id=\"id_2131235333\">Industry Growth Forecasts</h4><p>From 2013 to 2023, the industry’s revenues grew at a CAGR of 4.3%, increasing 1.53 times from $2.52 trillion to $3.87 trillion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f75073d983b7d91031aabaaf288b0e72\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>Despite lower-than-anticipated electric vehicle adoption rates, which have led legacy automakers to adjust spending, production, and product launches of new energy vehicles (NEVs), it’s clear that NEVs are the future of the automobile industry with automakers that, eventually, will be forced by legislators to cease the production of internal combustion engine (ICE) vehicles to promote more sustainable means of transportation.</p><p>Other than a secular switch in vehicles’ powering systems, which will boost the sale of new vehicles throughout the next decade, emerging economies – especially Asian ones like Thailand, India, Indonesia, Taiwan, and China for a lesser part – are expected to drive the demand for new cars.</p><p>Combining both the reinvestment made through the past decade and the industry&#39;s ability to generate revenues from the investments made, the 2024 expected revenue growth rate for the industry is 5.1%.</p><p>The industry&#39;s expected growth rate, and all the related industry assumptions, are based on the 2024 Automobile Industry Outlook published by BlackNote Investment.</p><p>By 2033, the automobile industry revenues are expected to reach $6.07 trillion, increasing 1.57 times from the $3.87 trillion registered in 2023 at a CAGR of 4.6%. We projected the industry’s expected revenues 10 years from now, applying the expected growth rate of 5.1% and allowing it to slowly decline as the industry approaches the economy&#39;s perpetual growth rate, represented in this case by the USD risk-free rate.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b5cd1b6adc291b466a4edd8d813a5bf4\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><h4 id=\"id_721243089\">Tesla Auto Company Growth Forecasts</h4><p>Projecting Tesla’s future market share, over the period 2013-2023, its market share significantly improved from 0.1% to 2.3%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ba1fda645c36e0d236d40fac1739776e\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>Despite the general slowdown in new energy vehicle adoption, it’s not a bold statement to say that electrification is the future of the automotive industry. As a pioneer in the EVs segment, it is undeniable that Tesla is at the forefront of this secular transition towards more sustainable means of transportation.</p><p>Considering Tesla’s brand recognition and superior features of its electric vehicles, we expect Tesla to achieve a 4.5% by 2033, becoming the third-largest automaker, with revenues from the automotive segment projected to reach $273.5 billion, representing an increase of 3 times from the 2023 revenues of $90.7 billion at a CAGR of 11.7%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b7857e5ca4cafaf503e654b73c284f21\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>Assuming the average selling price of its vehicles remains around $50k – for the sake of simplicity – it would translate into 5.6 billion vehicles sold by 2033.</p><p>Briefly dwelling on the solar and energy storage segment, revenues are expected to improve from $6 billion in 2023 to $35.4 billion by 2033, as Tesla improve its market share in the renewable energy industry from 1% to 3.8%.</p><p>Therefore, assuming Tesla will remain only the excellent automaker it already is, its total revenues are projected to reach $308.9 billion by 2033, representing an increase of 3.2 times from the 2023 revenues of $96.7 billion at a CAGR of 12.3%.</p><h4 id=\"id_4097653058\">Tesla Tech Company Growth Forecasts</h4><p>Now, projecting Tesla revenues in the scenario where it becomes a full-fledged technology hardware company, here is an extract from the 2020 Q4 earnings call that displays perfectly how Tesla’s investments in new technologies are expected to play out in the future:</p><blockquote><p><em>If Tesla ships, let&#39;s say, hypothetically, $50 billion worth of vehicles and those vehicles become Full Self-Driving and can be used as robotaxis, the utility increases from an average of 12 hours a week to potentially an average of 60 hours a week if they&#39;re capable of serving as robotaxi. So that&#39;s like roughly a 5x increase in utility…But let&#39;s just assume that the car becomes twice as useful, that would be a doubling again of the revenue of the company, which is almost entirely gross margin. So it will be like having $50 million of incremental profit basically from that because of the software.</em></p></blockquote><p>The key concept here is the vehicles&#39; increased utility due to the new technologies implemented by Tesla.</p><p>The primary usage derived from increased utility would be the long-awaited robotaxis services, but the management also expressed their interest in being able to remotely use the advanced AI chips needed to operate FSD capabilities for computational needs when the cars are not used for transportation needs.</p><p>However, as said at the very beginning, our valuation won’t be a thorough analysis of Tesla’s tech. Hence, we will just assess how the assumption of increased vehicle utility will play on Tesla&#39;s ability to generate revenues.</p><p>Assuming Tesla will eventually double the utility of each EV sold, we assumed that starting from 2026 the firm will start to recognize revenues from its technological solutions business line, and from 2026 to 2033 the segment revenues will grow from 5% to 50% of total revenues.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6de0abf8a9fd2a6fb20ba23d913a882b\" tg-width=\"640\" tg-height=\"360\"/></p><p>Source - BlackNote Investment</p><p></p><p>We are aware that this particular assumption is totally arbitrary and subjective, however, we think it is a plausible pathway towards the management goal of doubling vehicles&#39; utility in the next 10 years.</p><p>Therefore, assuming Tesla will evolve into a technology hardware company, its total revenues are projected to reach $617.9 billion by 2033, representing an increase of 6.4 times from the 2023 revenues of $96.7 billion at a CAGR of 20.4%.</p><h4 id=\"id_1483300108\">Tesla Auto Company Profitability</h4><p>Moving on to projecting profitability, as said previously, even if Tesla remains only an automaker, its business model already benefits from all the tech developed by the firm, granting it better profitability than the average company in the automobile industry.</p><p>For such reason, even in the scenario of Tesla the auto company, we still expect the firm to achieve an operating margin in line with the median operating margin of the technology hardware industry equal to 12.1% by 2033.</p><h4 id=\"id_1324928965\">Tesla Tech Company Profitability</h4><p>As regards the scenario in which Tesla evolves to be a full-fledged technology hardware company, starting from the 12.1% operating margin expected for the automotive segment, we assumed the technology solutions segment to achieve profitability levels on par with software companies.</p><p>It might seem – and probably is – an aggressive assumption to make, however, sticking with management’s expectations of doubling vehicles&#39; utility, the extra revenues derived by the increased utility, are likely to be generated with little marginal costs on top of the already expensed R&amp;D costs incurred to develop new technologies and vehicles.</p><p>The software industry boasts a 10-year median operating margin of 22.3% and a 10-year median FCF margin of 10.7%.</p><p>By 2033, given our assumption the technology solutions segment accounts for 50% of revenues, the average operating margin for Tesla in the scenario it generates revenues as a technology hardware company is expected to be 17.2%.</p><h4 id=\"id_4137343423\">Reinvestment Needs</h4><p>In both scenarios, we expected Tesla to maintain a reinvestment margin in line with the automobile industry average, equal to 4.5%, whether it remains an auto company or evolves into a tech company.</p><p>Despite the future of the company, it is undeniable that Tesla has to keep investing in the development of new vehicles and in maintaining and improving factory capacity, as without selling the hardware in the first place, it cannot capitalize on its tech.</p><h4 id=\"id_3949440677\">Tesla Auto Company Future Cash Flows</h4><p>Synthesizing all underlying assumptions in the scenario where remains an excellent EVs maker – $308.9 billion in revenues by 2033, 12.1% operating margin, and reinvestment margin of around 4.5% - Tesla&#39;s free cash flows to the firm are anticipated to swell to $14.5 billion by 2033, equal to a FCFF margin of 4.7%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/31260d810e97fb0d94fc3c6dbdf66444\" tg-width=\"640\" tg-height=\"360\"/></p><p>1st scenario (Source - BlackNote Investment)</p><p></p><h4 id=\"id_402358291\">Tesla Tech Company Future Cash Flows</h4><p>Synthesizing all underlying assumptions in the scenario where evolve into a technology hardware company – $617.9 billion in revenues by 2033, 17.2% operating margin, and reinvestment margin of around 4.5% - Tesla&#39;s free cash flows to the firm are anticipated to swell to $53.2 billion by 2033, equal to a FCFF margin of 8.6%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aa17ad706b2432dcb8111e1bc9802302\" tg-width=\"640\" tg-height=\"360\"/></p><p>2nd scenario (Source - BlackNote Investment)</p><p></p><h4 id=\"id_939082646\">Company Valuation</h4><p>In the first scenario, we apply a discount rate of 7.8% for the next 10 years, and a discount rate of 7.3% in perpetuity, while in the second scenario, we start with a discount rate of 7.8%, but we gradually adjust it to 7.3% as also the company risk profile changes as the firm evolves from an auto company to a technology hardware company</p><p>With these assumptions, we obtain that the present value of these cash flows – after adjusting for debt and cash on hand – is equal to $310.2 billion or $97.3 per share, in the auto company scenario, and $1.01 trillion or $317.2 per share, in the tech company scenario.</p><p>Compared to the current prices, in the first scenario, Tesla stock is overvalued by 53.7% - negative alpha of (9.3)% - while in the second scenario, Tesla’s stock is undervalued by 51.1% - positive alpha of 3%.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/81709ddef99b8d3d2868905ec1bfd3f6\" tg-width=\"640\" tg-height=\"360\"/></p><p>1st scenario (Source - BlackNote Investment)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a01f6e59fe978a9e91e9e45abb067df7\" tg-width=\"640\" tg-height=\"360\"/></p><p>2nd scenario (Source - BlackNote Investment)</p><p></p><p>However, given the number of assumptions made throughout the valuations, especially as regards the scenario seeing Tesla becoming a full-fledged technology company, it would be more realistic to assume that the truth lies somewhere in between.</p><p>Assigning a likelihood of 50% to both scenarios – again for the sake of simplicity – results that the intrinsic value of Tesla is equal to $670.6 billion or $210 per share, making Tesla’s stocks fairly valued at current prices.</p><p>The Street target for Tesla – based on 42 different analyst expectations – is sitting at $183 per share, as of the 1st of July 2024, with a high of $310 and a low of $85, and 21 Street recommendations expressing the rating “Hold.”</p><h4 id=\"id_2029630129\">Discount Rate</h4><p>To determine the appropriate discount rate, we employ the WACC method, which considers both the cost of equity and the cost of debt.</p><p>The cost of equity – 7.8% for the auto company and 7.3% for the tech company – is derived using the USA equity risk premium of 4.6% – as of June 2024 – the current USD risk-free rate of 4.2%, and the company&#39;s beta of 0.79, for the auto company, and 0.7, for the tech company. The auto company&#39;s beta is based on the automobile industry’s unlevered beta of 0.65, while the tech company&#39;s beta is based on the technology hardware industry’s unlevered beta of 0.57.</p><p>The cost of debt – 4.9% – represents the expected return demanded by debt holders and is influenced by the company&#39;s specific risk profile and the broader market conditions. It is computed considering the current USD risk-free rate of 4.2%, the company&#39;s default spread of 0.7%, and the USA default spread of 0%.</p><p>With a current Equity to Enterprise Value of 98.8% and a Debt to Enterprise Value of 1.2%, Tesla’s discount rate for the next 10 years is 7.8%, in the auto company scenario, and 7.4%, in the tech company ones.</p><p>As Tesla enters the steady state, both the company’s beta and company default spread are expected to approach the industry’s median values of 0.82 and 0.7%, respectively for the auto company, and 0.71 and 0.9%, respectively for the tech company.</p><p>Mature companies often have more predictable cash flows and may change their financing strategies. We anticipate Tesla to adjust its Equity to Enterprise Value and Debt to Enterprise Value towards the industry median of 83.4% and 16.6%, respectively for the auto company, and 89.5% and 10.5%, respectively for the tech company, reflecting a more typical capital structure for a stable company.</p><p>With these assumptions, the discount rate used to discount the cash flows in perpetuity is 7.3% in the auto company scenario, and 7.2% in the tech company scenario.</p><h2 id=\"id_1037040869\">Conclusion</h2><p>In conclusion, Tesla’s valuation is highly influenced by how investors see the firm, whether as an automaker or as a technology company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.</p><p>Regardless of how pessimistic investors&#39; assumptions are, it is undeniable that Tesla is not a simple automaker, and even in the auto company scenario, it should be treated – at least from a profitability and cash flow perspective – as a company with strong similarity to the tech sector.</p><p>In conclusion, our assumptions suggest that Tesla’s intrinsic value lies above the $210 per share assumed in the blended scenario and that at current prices, Tesla&#39;s risk-reward profile has the potential to generate a positive return to its shareholders, representing a good investment opportunity.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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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: A Tech Company Disguised As An Automaker\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-03 22:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4702260-tesla-a-tech-company-disguised-as-an-automaker><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla, Inc.'s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.Tesla is heavily ...</p>\n\n<a href=\"https://seekingalpha.com/article/4702260-tesla-a-tech-company-disguised-as-an-automaker\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","LU0738911758.USD":"Blackrock Global Equity Income A6 USD","LU1861558580.USD":"日兴方舟颠覆性创新基金B","TSLA":"特斯拉","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","BK4527":"明星科技股","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4588":"碎股","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","BK4551":"寇图资本持仓","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4574":"无人驾驶","LU0056508442.USD":"贝莱德世界科技基金A2","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","BK4581":"高盛持仓","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU2063271972.USD":"富兰克林创新领域基金","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","BK4592":"伊斯兰概念","LU0097036916.USD":"贝莱德美国增长A2 USD","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","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","LU0949170772.SGD":"Blackrock Global Equity Income A6 SGD-H","BK4585":"ETF&股票定投概念","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS"},"source_url":"https://seekingalpha.com/article/4702260-tesla-a-tech-company-disguised-as-an-automaker","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2448485700","content_text":"Tesla, Inc.'s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.Tesla is heavily investing into new technologies like Full Self Driving, robotics manufacturing solutions, and AI.Tesla’s performances speak for themselves, in all aspects they are superior to your average automaker.Tesla's risk-reward profile has the potential to generate a positive return to its shareholders.Executive SummaryTesla, Inc.'s (NASDAQ:TSLA) valuation is influenced by whether the firm will remain an automaker or it will evolve into a technology hardware company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.At the present day, Tesla is undoubtedly an automobile company, with 1.8 billion vehicles sold in 2023. However, it's undeniable that the company is heavily investing in new technologies, among all in its Full Self-Driving (FSD) capabilities.But Tesla tech doesn’t stop at autopilot, the firm is notably investing and developing robotics manufacturing solutions, currently implemented in its factories to improve efficiency and profitability, and obviously, they couldn't miss investing in AI technologies.The management couldn’t stress more on their robotics and AI future during the 2024 Q1 earnings call:We should be thought of as an AI or robotics company. If you value Tesla as just like an auto company, it's just the wrong framework. If you ask the wrong question, then the right answer is impossible.Hence, the following analysis will try to correctly answer the question, by assessing how revenues, operating margins, and free cash flows will change in two different scenarios: one assuming Tesla remains an excellent EVs maker, and another one assuming Tesla will evolve into a technology hardware company leveraging on its vehicles to capitalize on its tech solutions.1st scenario (Source - BlackNote Investment)2nd scenario (Source - BlackNote Investment)Before deep diving into the valuation, it’s worth mentioning that, by any means, this analysis does not want to be a technical and detailed assessment of the technologies under development by Tesla.Rather, it will treat the topic from a general point of view – using the reference “Technology solutions revenues” instead of discerning from “robotaxis,” “robotics,” and “AI revenues” – focusing on how Tesla’s value changes based on how investors identify the company.Despite we agree that more detail is always preferable, in this case, we believe that excessively dwelling on single technologies not yet fully implemented won’t add value – or change the results of the valuation – if not increase the chance of committing mistakes.Tesla The Auto CompanyIn 2023 Tesla's total revenues sat at $96.7 billion, an increase of 18.8%, significantly lower than the 58.8% median revenue growth rate investors were used to. However, it was still a good performance when compared to the y-o-y automobile industry growth rate of 14.1%.Source - TIKR TerminalAs of the 2024 Q1, revenue declined (8.7)% q-o-q.Leveraging on its battery and renewable energy know-how, Tesla is also active in the solar and energy storage business, which in 2023 accounted for 6.2% of revenues, equal to $6 billion.Source - TIKR TerminalProfitability MetricsThe 2023 Tesla's operating margin was 9.2%, declining from the 12.1% and 16.8% operating margin registered in 2021 and 2022 respectively, but still better than the past decade's industry median value of 6.5%.Source - TIKR TerminalThe total operating profit was $8.9 billion, registering a decrease of (34.9)% y-o-y, while in the latest Q1, the operating margin was at 5.5%, with the operating profit declining (56)% q-o-q.Source - TIKR TerminalLooking at free cash flows to the firm (FCFF), in 2023 the FCFF sat at $6.8 billion, equal to a FCFF margin of 7% - significantly better than the automobile industry’s 10Y median FCFF margin of 1.5% - continuing on the positive trend begun in 2019 when the company turned free cash flow positive.Source - TIKR TerminalReinvestments & Efficiency RatiosOver the past decade, Tesla has reinvested heavily into its business with the median reinvestment margin of Tesla standing at 6.8%, comprising net capital expenditures, acquisitions, and changes in working capital. When treating R&D expenses as capital expenditures due to their long-term value generation, this figure adjusts to 11.2%.Source - TIKR TerminalThe same adjusted reinvestment margin scored by the automobile industry over the past decade sits at only 4.5%.In terms of efficiency on capital reinvested into the company, during the period 2013-2023, Tesla boasts a median sales to invested capital ratio of 2.56, more than doubling the industry median value of 1.16.Source - TIKR TerminalTesla The Tech CompanyTesla’s performances speak for themselves, in all aspects they are superior to your average automaker.Despite the stumble in 2023 and the first half of 2024 – due to a weaker-than-expected EVs environment, which is tackling every automaker, not just Tesla – the firm is playing in a league of its own.Tesla’s revenues are growing faster, they are more profitable, and more efficient with their capital investments, when compared to traditional companies in the automobile industry, all culminating in greater free cash flow generation.Even if Tesla is still deriving the majority of its revenues from the sales of vehicles, it appears that treating the firm as a pure auto company is wrong in the first place, at least from a metric perspective.Tesla is still – and likely will always be – highly influenced by automotive industry dynamics, as shown by the downturn in revenue growth rates following the 2023 deterioration of the EVs market.But if the firm is undoubtedly an automobile company when it comes to revenue generation, in terms of profitability, reinvestment, and cash flow generation it is full-fledged a technology hardware company.The 10Y median operating margin for a technology hardware company is 12.1%, while the 10Y median FCF margin is 8%.Thanks to the technology in its EVs, Tesla was able to create a solid moat, resulting in greater revenue growth; selling its vehicles at a premium, improving profitability; and thanks to robotics to improve its factories' efficiency, improving cash flow generation.Here is an extract from the 2021 Q4 earnings call:From the hardware side, we are aggressively driving manufacturing innovations and operational efficiency to reduce cost. And with the rapid development of FSD, software-based profits will ultimately become a strong addition to the profits generated by selling hardware.Industry OverviewHowever, as said previously, Tesla will always be highly influenced by the automotive industry dynamics when it comes to selling its hardware, as without first selling its electric vehicles, Tesla cannot capitalize on its technologies.With its $90.7 billion revenues from the EVs segment, tesla has established a decent presence in the automobile industry, representing 2.3% of the industry's total revenues of $3.86 trillion.Source - BlackNote InvestmentThe automobile industry is highly competitive. Looking at the industry in its entirety, primary players consist of Volkswagen (OTCPK:VWAGY) with a 9.2% market share, Toyota (TM) with an 8% market share, and Ford (F) with a 4.6% market share.In the EVs segment, Tesla’s main competitor is the Chinese conglomerate BYD, which despite boosting only an overall 2.1% market share, is the leading new energy vehicles automaker in China and is rapidly expanding its presence in overseas markets thanks to its low-price vehicles.Industry Growth ForecastsFrom 2013 to 2023, the industry’s revenues grew at a CAGR of 4.3%, increasing 1.53 times from $2.52 trillion to $3.87 trillion.Source - BlackNote InvestmentDespite lower-than-anticipated electric vehicle adoption rates, which have led legacy automakers to adjust spending, production, and product launches of new energy vehicles (NEVs), it’s clear that NEVs are the future of the automobile industry with automakers that, eventually, will be forced by legislators to cease the production of internal combustion engine (ICE) vehicles to promote more sustainable means of transportation.Other than a secular switch in vehicles’ powering systems, which will boost the sale of new vehicles throughout the next decade, emerging economies – especially Asian ones like Thailand, India, Indonesia, Taiwan, and China for a lesser part – are expected to drive the demand for new cars.Combining both the reinvestment made through the past decade and the industry's ability to generate revenues from the investments made, the 2024 expected revenue growth rate for the industry is 5.1%.The industry's expected growth rate, and all the related industry assumptions, are based on the 2024 Automobile Industry Outlook published by BlackNote Investment.By 2033, the automobile industry revenues are expected to reach $6.07 trillion, increasing 1.57 times from the $3.87 trillion registered in 2023 at a CAGR of 4.6%. We projected the industry’s expected revenues 10 years from now, applying the expected growth rate of 5.1% and allowing it to slowly decline as the industry approaches the economy's perpetual growth rate, represented in this case by the USD risk-free rate.Source - BlackNote InvestmentTesla Auto Company Growth ForecastsProjecting Tesla’s future market share, over the period 2013-2023, its market share significantly improved from 0.1% to 2.3%.Source - BlackNote InvestmentDespite the general slowdown in new energy vehicle adoption, it’s not a bold statement to say that electrification is the future of the automotive industry. As a pioneer in the EVs segment, it is undeniable that Tesla is at the forefront of this secular transition towards more sustainable means of transportation.Considering Tesla’s brand recognition and superior features of its electric vehicles, we expect Tesla to achieve a 4.5% by 2033, becoming the third-largest automaker, with revenues from the automotive segment projected to reach $273.5 billion, representing an increase of 3 times from the 2023 revenues of $90.7 billion at a CAGR of 11.7%.Source - BlackNote InvestmentAssuming the average selling price of its vehicles remains around $50k – for the sake of simplicity – it would translate into 5.6 billion vehicles sold by 2033.Briefly dwelling on the solar and energy storage segment, revenues are expected to improve from $6 billion in 2023 to $35.4 billion by 2033, as Tesla improve its market share in the renewable energy industry from 1% to 3.8%.Therefore, assuming Tesla will remain only the excellent automaker it already is, its total revenues are projected to reach $308.9 billion by 2033, representing an increase of 3.2 times from the 2023 revenues of $96.7 billion at a CAGR of 12.3%.Tesla Tech Company Growth ForecastsNow, projecting Tesla revenues in the scenario where it becomes a full-fledged technology hardware company, here is an extract from the 2020 Q4 earnings call that displays perfectly how Tesla’s investments in new technologies are expected to play out in the future:If Tesla ships, let's say, hypothetically, $50 billion worth of vehicles and those vehicles become Full Self-Driving and can be used as robotaxis, the utility increases from an average of 12 hours a week to potentially an average of 60 hours a week if they're capable of serving as robotaxi. So that's like roughly a 5x increase in utility…But let's just assume that the car becomes twice as useful, that would be a doubling again of the revenue of the company, which is almost entirely gross margin. So it will be like having $50 million of incremental profit basically from that because of the software.The key concept here is the vehicles' increased utility due to the new technologies implemented by Tesla.The primary usage derived from increased utility would be the long-awaited robotaxis services, but the management also expressed their interest in being able to remotely use the advanced AI chips needed to operate FSD capabilities for computational needs when the cars are not used for transportation needs.However, as said at the very beginning, our valuation won’t be a thorough analysis of Tesla’s tech. Hence, we will just assess how the assumption of increased vehicle utility will play on Tesla's ability to generate revenues.Assuming Tesla will eventually double the utility of each EV sold, we assumed that starting from 2026 the firm will start to recognize revenues from its technological solutions business line, and from 2026 to 2033 the segment revenues will grow from 5% to 50% of total revenues.Source - BlackNote InvestmentWe are aware that this particular assumption is totally arbitrary and subjective, however, we think it is a plausible pathway towards the management goal of doubling vehicles' utility in the next 10 years.Therefore, assuming Tesla will evolve into a technology hardware company, its total revenues are projected to reach $617.9 billion by 2033, representing an increase of 6.4 times from the 2023 revenues of $96.7 billion at a CAGR of 20.4%.Tesla Auto Company ProfitabilityMoving on to projecting profitability, as said previously, even if Tesla remains only an automaker, its business model already benefits from all the tech developed by the firm, granting it better profitability than the average company in the automobile industry.For such reason, even in the scenario of Tesla the auto company, we still expect the firm to achieve an operating margin in line with the median operating margin of the technology hardware industry equal to 12.1% by 2033.Tesla Tech Company ProfitabilityAs regards the scenario in which Tesla evolves to be a full-fledged technology hardware company, starting from the 12.1% operating margin expected for the automotive segment, we assumed the technology solutions segment to achieve profitability levels on par with software companies.It might seem – and probably is – an aggressive assumption to make, however, sticking with management’s expectations of doubling vehicles' utility, the extra revenues derived by the increased utility, are likely to be generated with little marginal costs on top of the already expensed R&D costs incurred to develop new technologies and vehicles.The software industry boasts a 10-year median operating margin of 22.3% and a 10-year median FCF margin of 10.7%.By 2033, given our assumption the technology solutions segment accounts for 50% of revenues, the average operating margin for Tesla in the scenario it generates revenues as a technology hardware company is expected to be 17.2%.Reinvestment NeedsIn both scenarios, we expected Tesla to maintain a reinvestment margin in line with the automobile industry average, equal to 4.5%, whether it remains an auto company or evolves into a tech company.Despite the future of the company, it is undeniable that Tesla has to keep investing in the development of new vehicles and in maintaining and improving factory capacity, as without selling the hardware in the first place, it cannot capitalize on its tech.Tesla Auto Company Future Cash FlowsSynthesizing all underlying assumptions in the scenario where remains an excellent EVs maker – $308.9 billion in revenues by 2033, 12.1% operating margin, and reinvestment margin of around 4.5% - Tesla's free cash flows to the firm are anticipated to swell to $14.5 billion by 2033, equal to a FCFF margin of 4.7%.1st scenario (Source - BlackNote Investment)Tesla Tech Company Future Cash FlowsSynthesizing all underlying assumptions in the scenario where evolve into a technology hardware company – $617.9 billion in revenues by 2033, 17.2% operating margin, and reinvestment margin of around 4.5% - Tesla's free cash flows to the firm are anticipated to swell to $53.2 billion by 2033, equal to a FCFF margin of 8.6%.2nd scenario (Source - BlackNote Investment)Company ValuationIn the first scenario, we apply a discount rate of 7.8% for the next 10 years, and a discount rate of 7.3% in perpetuity, while in the second scenario, we start with a discount rate of 7.8%, but we gradually adjust it to 7.3% as also the company risk profile changes as the firm evolves from an auto company to a technology hardware companyWith these assumptions, we obtain that the present value of these cash flows – after adjusting for debt and cash on hand – is equal to $310.2 billion or $97.3 per share, in the auto company scenario, and $1.01 trillion or $317.2 per share, in the tech company scenario.Compared to the current prices, in the first scenario, Tesla stock is overvalued by 53.7% - negative alpha of (9.3)% - while in the second scenario, Tesla’s stock is undervalued by 51.1% - positive alpha of 3%.1st scenario (Source - BlackNote Investment)2nd scenario (Source - BlackNote Investment)However, given the number of assumptions made throughout the valuations, especially as regards the scenario seeing Tesla becoming a full-fledged technology company, it would be more realistic to assume that the truth lies somewhere in between.Assigning a likelihood of 50% to both scenarios – again for the sake of simplicity – results that the intrinsic value of Tesla is equal to $670.6 billion or $210 per share, making Tesla’s stocks fairly valued at current prices.The Street target for Tesla – based on 42 different analyst expectations – is sitting at $183 per share, as of the 1st of July 2024, with a high of $310 and a low of $85, and 21 Street recommendations expressing the rating “Hold.”Discount RateTo determine the appropriate discount rate, we employ the WACC method, which considers both the cost of equity and the cost of debt.The cost of equity – 7.8% for the auto company and 7.3% for the tech company – is derived using the USA equity risk premium of 4.6% – as of June 2024 – the current USD risk-free rate of 4.2%, and the company's beta of 0.79, for the auto company, and 0.7, for the tech company. The auto company's beta is based on the automobile industry’s unlevered beta of 0.65, while the tech company's beta is based on the technology hardware industry’s unlevered beta of 0.57.The cost of debt – 4.9% – represents the expected return demanded by debt holders and is influenced by the company's specific risk profile and the broader market conditions. It is computed considering the current USD risk-free rate of 4.2%, the company's default spread of 0.7%, and the USA default spread of 0%.With a current Equity to Enterprise Value of 98.8% and a Debt to Enterprise Value of 1.2%, Tesla’s discount rate for the next 10 years is 7.8%, in the auto company scenario, and 7.4%, in the tech company ones.As Tesla enters the steady state, both the company’s beta and company default spread are expected to approach the industry’s median values of 0.82 and 0.7%, respectively for the auto company, and 0.71 and 0.9%, respectively for the tech company.Mature companies often have more predictable cash flows and may change their financing strategies. We anticipate Tesla to adjust its Equity to Enterprise Value and Debt to Enterprise Value towards the industry median of 83.4% and 16.6%, respectively for the auto company, and 89.5% and 10.5%, respectively for the tech company, reflecting a more typical capital structure for a stable company.With these assumptions, the discount rate used to discount the cash flows in perpetuity is 7.3% in the auto company scenario, and 7.2% in the tech company scenario.ConclusionIn conclusion, Tesla’s valuation is highly influenced by how investors see the firm, whether as an automaker or as a technology company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.Regardless of how pessimistic investors' assumptions are, it is undeniable that Tesla is not a simple automaker, and even in the auto company scenario, it should be treated – at least from a profitability and cash flow perspective – as a company with strong similarity to the tech sector.In conclusion, our assumptions suggest that Tesla’s intrinsic value lies above the $210 per share assumed in the blended scenario and that at current prices, Tesla's risk-reward profile has the potential to generate a positive return to its shareholders, representing a good investment opportunity.","news_type":1},"isVote":1,"tweetType":1,"viewCount":1,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":323462232494272,"gmtCreate":1719984217428,"gmtModify":1719984219524,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/323462232494272","repostId":"1169546972","repostType":2,"repost":{"id":"1169546972","weMediaInfo":{"introduction":"Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals","home_visible":0,"media_name":"Benzinga","id":"1052270027","head_image":"https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa"},"pubTimestamp":1719978979,"share":"https://www.laohu8.com/m/news/1169546972?lang=&edition=full","pubTime":"2024-07-03 11:56","market":"us","language":"en","title":"Elon Musk Warns Tesla Short Sellers, Including Bill Gates, That They Will Be Obliterated","url":"https://stock-news.laohu8.com/highlight/detail?id=1169546972","media":"Benzinga","summary":"Future Fund Managing Partner Gary Black has issued a stark warning to those betting against $Tesla Inc.(TSLA)$ stock.What Happened: Black took to X to express his views on Tesla’s future, emphasizing ","content":"<html><head></head><body><p>Future Fund Managing Partner Gary Black has issued a stark warning to those betting against <a href=\"https://laohu8.com/S/TSLA\">Tesla Inc.</a> stock.</p><p style=\"text-align: start;\"><strong>What Happened</strong>: Black took to X to express his views on Tesla’s future, emphasizing the potential of the electric vehicle market and Tesla’s position within it. He predicted a significant increase in Tesla’s Total Addressable Market with the launch of a $25,000 vehicle in 2025 and the potential of Tesla’s autonomous driving technology to be worth $5 trillion.</p><p style=\"text-align: start;\">“Anyone short $TSLA needs to have their head examined.” Black wrote.</p><p>Black also mentioned Elon Musk‘s plans to use the knowledge gained from Tesla’s Robotaxi project to launch Optimus robots, which could potentially give Tesla a market cap of $20-$25 trillion.</p><p style=\"text-align: start;\">Black quoted Musk’s post, where the Tesla CEO warned that once Tesla solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated, “Even Gates.”</p><p>Musk’s tweet was in reference to one of the most famous Tesla short sellers, <strong>Microsoft</strong> co-founder <strong>Bill Gates</strong>.</p><p style=\"text-align: start;\"><strong>Why It Matters</strong>: Black’s comments come at a time when Tesla’s stock is on the rise. The company’s second-quarter deliveries report ignited a stock rally, with the stock hitting resistance levels that had previously been a peak. This led to speculation about how far the rally would go.</p><p style=\"text-align: start;\">Despite being a popular stock to short, Tesla’s stock has been performing well, <strong>Wedbush</strong> analyst <strong>Dan Ives</strong> raised Tesla’s price target to $300, citing the company’s AI potential, which he believes could be worth over $1 trillion. This reflects a significant increase from the previous target of $275.</p><p style=\"text-align: start;\"><strong>Price Action</strong>: Tesla Inc. shares closed at $231.26 on Tuesday, up $21.40 or 10.20% for the day. In after-hours trading, the stock dipped 0.035%. Year to date, Tesla&#39;s stock has decreased by 6.91%, according to data from Benzinga Pro.</p></body></html>","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>Elon Musk Warns Tesla Short Sellers, Including Bill Gates, That They Will Be Obliterated</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\">\nElon Musk Warns Tesla Short Sellers, Including Bill Gates, That They Will Be Obliterated\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Benzinga </p>\n<p class=\"h-time\">2024-07-03 11:56</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Future Fund Managing Partner Gary Black has issued a stark warning to those betting against <a href=\"https://laohu8.com/S/TSLA\">Tesla Inc.</a> stock.</p><p style=\"text-align: start;\"><strong>What Happened</strong>: Black took to X to express his views on Tesla’s future, emphasizing the potential of the electric vehicle market and Tesla’s position within it. He predicted a significant increase in Tesla’s Total Addressable Market with the launch of a $25,000 vehicle in 2025 and the potential of Tesla’s autonomous driving technology to be worth $5 trillion.</p><p style=\"text-align: start;\">“Anyone short $TSLA needs to have their head examined.” Black wrote.</p><p>Black also mentioned Elon Musk‘s plans to use the knowledge gained from Tesla’s Robotaxi project to launch Optimus robots, which could potentially give Tesla a market cap of $20-$25 trillion.</p><p style=\"text-align: start;\">Black quoted Musk’s post, where the Tesla CEO warned that once Tesla solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated, “Even Gates.”</p><p>Musk’s tweet was in reference to one of the most famous Tesla short sellers, <strong>Microsoft</strong> co-founder <strong>Bill Gates</strong>.</p><p style=\"text-align: start;\"><strong>Why It Matters</strong>: Black’s comments come at a time when Tesla’s stock is on the rise. The company’s second-quarter deliveries report ignited a stock rally, with the stock hitting resistance levels that had previously been a peak. This led to speculation about how far the rally would go.</p><p style=\"text-align: start;\">Despite being a popular stock to short, Tesla’s stock has been performing well, <strong>Wedbush</strong> analyst <strong>Dan Ives</strong> raised Tesla’s price target to $300, citing the company’s AI potential, which he believes could be worth over $1 trillion. This reflects a significant increase from the previous target of $275.</p><p style=\"text-align: start;\"><strong>Price Action</strong>: Tesla Inc. shares closed at $231.26 on Tuesday, up $21.40 or 10.20% for the day. In after-hours trading, the stock dipped 0.035%. Year to date, Tesla&#39;s stock has decreased by 6.91%, according to data from Benzinga Pro.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1169546972","content_text":"Future Fund Managing Partner Gary Black has issued a stark warning to those betting against Tesla Inc. stock.What Happened: Black took to X to express his views on Tesla’s future, emphasizing the potential of the electric vehicle market and Tesla’s position within it. He predicted a significant increase in Tesla’s Total Addressable Market with the launch of a $25,000 vehicle in 2025 and the potential of Tesla’s autonomous driving technology to be worth $5 trillion.“Anyone short $TSLA needs to have their head examined.” Black wrote.Black also mentioned Elon Musk‘s plans to use the knowledge gained from Tesla’s Robotaxi project to launch Optimus robots, which could potentially give Tesla a market cap of $20-$25 trillion.Black quoted Musk’s post, where the Tesla CEO warned that once Tesla solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated, “Even Gates.”Musk’s tweet was in reference to one of the most famous Tesla short sellers, Microsoft co-founder Bill Gates.Why It Matters: Black’s comments come at a time when Tesla’s stock is on the rise. The company’s second-quarter deliveries report ignited a stock rally, with the stock hitting resistance levels that had previously been a peak. This led to speculation about how far the rally would go.Despite being a popular stock to short, Tesla’s stock has been performing well, Wedbush analyst Dan Ives raised Tesla’s price target to $300, citing the company’s AI potential, which he believes could be worth over $1 trillion. This reflects a significant increase from the previous target of $275.Price Action: Tesla Inc. shares closed at $231.26 on Tuesday, up $21.40 or 10.20% for the day. In after-hours trading, the stock dipped 0.035%. Year to date, Tesla's stock has decreased by 6.91%, according to data from Benzinga Pro.","news_type":1},"isVote":1,"tweetType":1,"viewCount":13,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322734345183320,"gmtCreate":1719822799589,"gmtModify":1719825463010,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=0b52158a269dd8d34bf892864a208599&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=0b52158a269dd8d34bf892864a208599&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322734345183320","isVote":1,"tweetType":1,"viewCount":8,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322653211349064,"gmtCreate":1719803116378,"gmtModify":1719803119848,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322653211349064","repostId":"2447684671","repostType":2,"repost":{"id":"2447684671","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1719801597,"share":"https://www.laohu8.com/m/news/2447684671?lang=&edition=full","pubTime":"2024-07-01 10:39","market":"hk","language":"en","title":"Amazon, Built by Retail, Invests in Its AI Future","url":"https://stock-news.laohu8.com/highlight/detail?id=2447684671","media":"Dow Jones","summary":"Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.Amazon is planning to spend more than $100 billion over the next decade on data centers, an impressive level of investment even for a company known for its spending ways. The Seattle company is now devoting more investment money to its cloud computing and AI infrastructure than to its sprawling network of e-commerce warehouses.Amazon's spending on data-center capital expenses, including leases, compared with total capital expenditures hit a decade-high last year of 53%, according to market-research firm Dell'Oro Group. Amazon said it expects AWS infrastructure spending to remain high this year, and the company has announced many AWS investments in recent months.Amazon's shift represents the changing needs of a company that, despite having the world's leading cloud-co","content":"<html><head></head><body><p>Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.</p><p>Amazon is planning to spend more than $100 billion over the next decade on data centers, an impressive level of investment even for a company known for its spending ways. The Seattle company is now devoting more investment money to its cloud computing and AI infrastructure than to its sprawling network of e-commerce warehouses.</p><p>Amazon Web Services, the arm that manages Amazon&#39;s cloud business, has opened data centers for years, but executives said there is a surge in investment now to meet demand triggered by the excitement around AI.</p><p>&#34;We have to dive in. We have to figure it out,&#34; said John Felton, who took over as AWS&#39;s chief financial officer this year after spending most of his career in Amazon&#39;s retail fulfillment operations.</p><p>The company&#39;s financial commitment reflects the importance and high costs of AI. Felton said building for AI today feels like building that massive delivery network in years past. &#34;It&#39;s a little uncertain,&#34; he said. AWS is expanding in Virginia, Ohio and elsewhere.</p><p>The company&#39;s overall capital expenditures decreased last year primarily because it reined in fulfillment and transportation spending, but the share of that spending on infrastructure mostly for AWS has surged. The increase represents a new era of expansion for Amazon, in which investing in cutting-edge cloud equipment is more critical to its growth than developing its network of retail warehouses.</p><p>Amazon&#39;s spending on data-center capital expenses, including leases, compared with total capital expenditures hit a decade-high last year of 53%, according to market-research firm Dell&#39;Oro Group. Amazon said it expects AWS infrastructure spending to remain high this year, and the company has announced many AWS investments in recent months.</p><p>Amazon&#39;s cloud business has long been the company&#39;s profit engine, and AI is expected to catapult demand for cloud computing to new heights. Executives are aiming to take advantage of the AI boom, which relies on cloud services because of the intensive computing resources required. Amazon expects tens of billions of dollars in revenue from AI in the next several years.</p><p>&#34;We&#39;re just keeping our heads down and focusing on delivering that capacity right now,&#34; said Kevin Miller, AWS vice president of global data centers.</p><p>Amazon&#39;s shift represents the changing needs of a company that, despite having the world&#39;s leading cloud-computing business and years of experimenting with AI, is seen by some experts as trailing in AI behind its big tech peers. Amazon has said it isn&#39;t falling behind others in AI and its AI capabilities at AWS have been well-received by customers.</p><p>Amazon has a long history of spending big to stay ahead. It had years of heavy capital investment in its delivery infrastructure to establish its e-commerce dominance and then to meet explosive demand during the Covid-19 pandemic.</p><p>That heavy investment contributed to Amazon this past week becoming the fifth-ever U.S. company to reach the milestone of $2 trillion in market value. The stock closed Friday at $193.25, valuing the company at $2.011 trillion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/25e1dcc86d6fdac623b66675c5970dc0\" tg-width=\"588\" tg-height=\"423\"/></p><p>Amazon&#39;s increased focus on data centers is also reflected in the company&#39;s senior leadership, which has increasingly become stocked with people with connections to the cloud business. Andy Jassy served as the AWS chief executive for more than two decades before becoming Amazon&#39;s chief executive in 2021.</p><p>&#34;There is a natural tendency to invest more in AWS and technology for the folks left behind because that&#39;s what they grew and built,&#34; said Cayce Roy, chief executive at e-commerce fulfillment company Standvast and a former vice president at Amazon.</p><p>Amazon plans to add at least 216 new data-center buildings in the next several years, said Marc Wulfraat, president at logistics consultant MWPVL International. Amazon&#39;s retail capital expenditures probably won&#39;t grow much through 2025, he said, in part because Amazon has extra capacity in that segment after overbuilding during the pandemic.</p><p>With high demand for AI infrastructure, Amazon and other tech companies have struggled to get the parts, property and power that data centers with supercomputers require. Amazon and other big tech companies have sought nuclear power to feed their energy needs. The company&#39;s fulfillment build-out took many years to accomplish and didn&#39;t require the same technical equipment that data centers do.</p><p>Jassy has reoriented Amazon to focus on AI products throughout its various businesses. He has said generative AI could be a critical element of its next pillar of growth in addition to its online retail business, Amazon Prime and AWS.</p><p>In May, the company named Matt Garman, a veteran executive with a strong engineering background, as the new AWS CEO, as it moves to better capitalize on AI.</p><p>Amazon is still by far the biggest online retailer in the U.S., and its recent financials have shown that it is in as strong a position as ever. The company continues to invest in its retail arm and open new delivery facilities. It has expanded its shipping capabilities to reach more Americans faster as it has faced competition from newer e-commerce entrants.</p><p>But now it is also time to invest in the AI opportunity, Felton said</p><p>&#34;It&#39;s a fascinating time to be here and think about how we can really think differently about how cloud computing works and how we can think differently about serving customers in the world of GenAI,&#34; he said, referring to generative artificial intelligence.</p></body></html>","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>Amazon, Built by Retail, Invests in Its AI Future</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\">\nAmazon, Built by Retail, Invests in Its AI Future\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-01 10:39</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.</p><p>Amazon is planning to spend more than $100 billion over the next decade on data centers, an impressive level of investment even for a company known for its spending ways. The Seattle company is now devoting more investment money to its cloud computing and AI infrastructure than to its sprawling network of e-commerce warehouses.</p><p>Amazon Web Services, the arm that manages Amazon&#39;s cloud business, has opened data centers for years, but executives said there is a surge in investment now to meet demand triggered by the excitement around AI.</p><p>&#34;We have to dive in. We have to figure it out,&#34; said John Felton, who took over as AWS&#39;s chief financial officer this year after spending most of his career in Amazon&#39;s retail fulfillment operations.</p><p>The company&#39;s financial commitment reflects the importance and high costs of AI. Felton said building for AI today feels like building that massive delivery network in years past. &#34;It&#39;s a little uncertain,&#34; he said. AWS is expanding in Virginia, Ohio and elsewhere.</p><p>The company&#39;s overall capital expenditures decreased last year primarily because it reined in fulfillment and transportation spending, but the share of that spending on infrastructure mostly for AWS has surged. The increase represents a new era of expansion for Amazon, in which investing in cutting-edge cloud equipment is more critical to its growth than developing its network of retail warehouses.</p><p>Amazon&#39;s spending on data-center capital expenses, including leases, compared with total capital expenditures hit a decade-high last year of 53%, according to market-research firm Dell&#39;Oro Group. Amazon said it expects AWS infrastructure spending to remain high this year, and the company has announced many AWS investments in recent months.</p><p>Amazon&#39;s cloud business has long been the company&#39;s profit engine, and AI is expected to catapult demand for cloud computing to new heights. Executives are aiming to take advantage of the AI boom, which relies on cloud services because of the intensive computing resources required. Amazon expects tens of billions of dollars in revenue from AI in the next several years.</p><p>&#34;We&#39;re just keeping our heads down and focusing on delivering that capacity right now,&#34; said Kevin Miller, AWS vice president of global data centers.</p><p>Amazon&#39;s shift represents the changing needs of a company that, despite having the world&#39;s leading cloud-computing business and years of experimenting with AI, is seen by some experts as trailing in AI behind its big tech peers. Amazon has said it isn&#39;t falling behind others in AI and its AI capabilities at AWS have been well-received by customers.</p><p>Amazon has a long history of spending big to stay ahead. It had years of heavy capital investment in its delivery infrastructure to establish its e-commerce dominance and then to meet explosive demand during the Covid-19 pandemic.</p><p>That heavy investment contributed to Amazon this past week becoming the fifth-ever U.S. company to reach the milestone of $2 trillion in market value. The stock closed Friday at $193.25, valuing the company at $2.011 trillion.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/25e1dcc86d6fdac623b66675c5970dc0\" tg-width=\"588\" tg-height=\"423\"/></p><p>Amazon&#39;s increased focus on data centers is also reflected in the company&#39;s senior leadership, which has increasingly become stocked with people with connections to the cloud business. Andy Jassy served as the AWS chief executive for more than two decades before becoming Amazon&#39;s chief executive in 2021.</p><p>&#34;There is a natural tendency to invest more in AWS and technology for the folks left behind because that&#39;s what they grew and built,&#34; said Cayce Roy, chief executive at e-commerce fulfillment company Standvast and a former vice president at Amazon.</p><p>Amazon plans to add at least 216 new data-center buildings in the next several years, said Marc Wulfraat, president at logistics consultant MWPVL International. Amazon&#39;s retail capital expenditures probably won&#39;t grow much through 2025, he said, in part because Amazon has extra capacity in that segment after overbuilding during the pandemic.</p><p>With high demand for AI infrastructure, Amazon and other tech companies have struggled to get the parts, property and power that data centers with supercomputers require. Amazon and other big tech companies have sought nuclear power to feed their energy needs. The company&#39;s fulfillment build-out took many years to accomplish and didn&#39;t require the same technical equipment that data centers do.</p><p>Jassy has reoriented Amazon to focus on AI products throughout its various businesses. He has said generative AI could be a critical element of its next pillar of growth in addition to its online retail business, Amazon Prime and AWS.</p><p>In May, the company named Matt Garman, a veteran executive with a strong engineering background, as the new AWS CEO, as it moves to better capitalize on AI.</p><p>Amazon is still by far the biggest online retailer in the U.S., and its recent financials have shown that it is in as strong a position as ever. The company continues to invest in its retail arm and open new delivery facilities. It has expanded its shipping capabilities to reach more Americans faster as it has faced competition from newer e-commerce entrants.</p><p>But now it is also time to invest in the AI opportunity, Felton said</p><p>&#34;It&#39;s a fascinating time to be here and think about how we can really think differently about how cloud computing works and how we can think differently about serving customers in the world of GenAI,&#34; he said, referring to generative artificial intelligence.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","BK4592":"伊斯兰概念","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","BK4507":"流媒体概念","BK4585":"ETF&股票定投概念","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4534":"瑞士信贷持仓","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H","BK4566":"资本集团","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","BK4220":"综合零售","BK4527":"明星科技股","BK4538":"云计算","BK4559":"巴菲特持仓","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","AMZN":"亚马逊","BK4579":"人工智能","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4588":"碎股","LU0238689110.USD":"贝莱德环球动力股票基金","LU0234570918.USD":"高盛全球核心股票组合Acc Close","BK4550":"红杉资本持仓","BK4503":"景林资产持仓","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU0072462426.USD":"贝莱德全球配置 A2","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4122":"互联网与直销零售","LU0079474960.USD":"联博美国增长基金A","LU0082616367.USD":"摩根大通美国科技A（dist）","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4551":"寇图资本持仓","LU0056508442.USD":"贝莱德世界科技基金A2","BK4561":"索罗斯持仓","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4581":"高盛持仓","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0109392836.USD":"富兰克林科技股A"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2447684671","content_text":"Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.Amazon is planning to spend more than $100 billion over the next decade on data centers, an impressive level of investment even for a company known for its spending ways. The Seattle company is now devoting more investment money to its cloud computing and AI infrastructure than to its sprawling network of e-commerce warehouses.Amazon Web Services, the arm that manages Amazon's cloud business, has opened data centers for years, but executives said there is a surge in investment now to meet demand triggered by the excitement around AI.\"We have to dive in. We have to figure it out,\" said John Felton, who took over as AWS's chief financial officer this year after spending most of his career in Amazon's retail fulfillment operations.The company's financial commitment reflects the importance and high costs of AI. Felton said building for AI today feels like building that massive delivery network in years past. \"It's a little uncertain,\" he said. AWS is expanding in Virginia, Ohio and elsewhere.The company's overall capital expenditures decreased last year primarily because it reined in fulfillment and transportation spending, but the share of that spending on infrastructure mostly for AWS has surged. The increase represents a new era of expansion for Amazon, in which investing in cutting-edge cloud equipment is more critical to its growth than developing its network of retail warehouses.Amazon's spending on data-center capital expenses, including leases, compared with total capital expenditures hit a decade-high last year of 53%, according to market-research firm Dell'Oro Group. Amazon said it expects AWS infrastructure spending to remain high this year, and the company has announced many AWS investments in recent months.Amazon's cloud business has long been the company's profit engine, and AI is expected to catapult demand for cloud computing to new heights. Executives are aiming to take advantage of the AI boom, which relies on cloud services because of the intensive computing resources required. Amazon expects tens of billions of dollars in revenue from AI in the next several years.\"We're just keeping our heads down and focusing on delivering that capacity right now,\" said Kevin Miller, AWS vice president of global data centers.Amazon's shift represents the changing needs of a company that, despite having the world's leading cloud-computing business and years of experimenting with AI, is seen by some experts as trailing in AI behind its big tech peers. Amazon has said it isn't falling behind others in AI and its AI capabilities at AWS have been well-received by customers.Amazon has a long history of spending big to stay ahead. It had years of heavy capital investment in its delivery infrastructure to establish its e-commerce dominance and then to meet explosive demand during the Covid-19 pandemic.That heavy investment contributed to Amazon this past week becoming the fifth-ever U.S. company to reach the milestone of $2 trillion in market value. The stock closed Friday at $193.25, valuing the company at $2.011 trillion.Amazon's increased focus on data centers is also reflected in the company's senior leadership, which has increasingly become stocked with people with connections to the cloud business. Andy Jassy served as the AWS chief executive for more than two decades before becoming Amazon's chief executive in 2021.\"There is a natural tendency to invest more in AWS and technology for the folks left behind because that's what they grew and built,\" said Cayce Roy, chief executive at e-commerce fulfillment company Standvast and a former vice president at Amazon.Amazon plans to add at least 216 new data-center buildings in the next several years, said Marc Wulfraat, president at logistics consultant MWPVL International. Amazon's retail capital expenditures probably won't grow much through 2025, he said, in part because Amazon has extra capacity in that segment after overbuilding during the pandemic.With high demand for AI infrastructure, Amazon and other tech companies have struggled to get the parts, property and power that data centers with supercomputers require. Amazon and other big tech companies have sought nuclear power to feed their energy needs. The company's fulfillment build-out took many years to accomplish and didn't require the same technical equipment that data centers do.Jassy has reoriented Amazon to focus on AI products throughout its various businesses. He has said generative AI could be a critical element of its next pillar of growth in addition to its online retail business, Amazon Prime and AWS.In May, the company named Matt Garman, a veteran executive with a strong engineering background, as the new AWS CEO, as it moves to better capitalize on AI.Amazon is still by far the biggest online retailer in the U.S., and its recent financials have shown that it is in as strong a position as ever. The company continues to invest in its retail arm and open new delivery facilities. It has expanded its shipping capabilities to reach more Americans faster as it has faced competition from newer e-commerce entrants.But now it is also time to invest in the AI opportunity, Felton said\"It's a fascinating time to be here and think about how we can really think differently about how cloud computing works and how we can think differently about serving customers in the world of GenAI,\" he said, referring to generative artificial intelligence.","news_type":1},"isVote":1,"tweetType":1,"viewCount":32,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":322495738863744,"gmtCreate":1719765013241,"gmtModify":1719797124121,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"Guess the winner，Earn Tiger Coins","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/trading-guess?inviteId=IJXETRSD&amp;banner=0&amp;adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=f46a08b7be6e526e19b7dc0625f309cc&amp;invite=2ABUKH&amp;lang=en_US\">Guess the winner，Earn Tiger Coins</a> Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/trading-guess?inviteId=IJXETRSD&amp;banner=0&amp;adcode=AC1718527559510bEArSe&amp;feature=Message&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=f46a08b7be6e526e19b7dc0625f309cc&amp;invite=2ABUKH&amp;lang=en_US\">Guess the winner，Earn Tiger Coins</a> Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.","text":"Find out more here: Guess the winner，Earn Tiger Coins Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.","images":[{"img":"https://static.tigerbbs.com/f5b7f90833b0728cadecb5cb81220f1d"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/322495738863744","isVote":1,"tweetType":1,"viewCount":82,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":322413704847440,"gmtCreate":1719744759236,"gmtModify":1719745039959,"author":{"id":"4093058894761280","authorId":"4093058894761280","name":"Longlong49","avatar":"https://community-static.tradeup.com/news/6d20655a76bd5ea59ffafea6c1f6e046","crmLevel":2,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=c6842e926ad98538527a9f626eff40ea&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/10th-anniversary?banner=0&amp;adcode=AC1718527559510bEArSe&amp;utm_source=invite&amp;utm_campaign=AC1718527559510bEArSe&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=c6842e926ad98538527a9f626eff40ea&amp;invite=2ABUKH&amp;lang=en_US\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade &amp; win $1,010 worth of rewards!","text":"Find out more here: TIGER ROARS, DECADES SOAR. 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