LinkedIn reported that its membership roll rose 28% to 332 million, but only 90 million visited the site on a monthly basis. Last quarter, Facebook's monthly active users, or MAUs, rose 14% year over year to 1.35 billion, while its daily active users, or DAUs, climbed 19% to 864 million. Let's break down these two companies' business models and valuations to see which stock comes out on top. Both companies are highly disruptive - Facebook crushed MySpace, and LinkedIn is destroying Monster Worldwide.įacebook and LinkedIn aren't direct competitors, but investors might wonder which social networking stock is a better long-term investment. The former is designed for family and friends, while the latter hosts professional profiles. However, a witch's brew of negative press can swirl at any time, even for Tesla.Facebook ( META -24.56%) and LinkedIn ( LNKD.DL) represent two opposite sides of the social networking market. These valuations are far more reasonable than they were a year ago when Tesla could seemingly do no wrong. The P/E ratio goes down to 43x based on next year’s earnings estimate (compared to the S&P 500 at 15x the 2023 consensus earnings estimate). With a more modest 70% earnings growth expected this year, the shares trade at 58x 2022 earnings. The 200% profit growth Tesla posted in 2021 was not sustainable but market euphoria priced the stock as if it were. The growth trajectory has been impressive, but tweet-influenced retail traders have long been bidding Tesla "to the moon." When a stock is priced to perfection and something goes wrong, the selloff can be profound. The stock’s lofty P/E ratio has always been a concern of the bears. Does that make Tesla's valuation more attractive? Is Tesla Stock Overvalued?Īfter suffering its worst pullback since the beginning of the pandemic, the share price is lower. It represents a large part of why the stock is trading nearly 50% below its November 2021 peak. The latter forecast would represent half the growth expected in 2022. (NYSE: WMT) are among the other consumer giants lined up to receive the highly touted semi.Īs manufacturing capacity expands in 2023, Tesla plans to crank out many more Model 3s, Model Ss and semis, shooting for 50% annual vehicle growth over time although supply chain disruptions could weigh on near-term growth.Ĭombined with the revenue generated in the energy generation and storage businesses, analysts project 40% top line growth and a 35% increase in earnings per share (EPS) next year. Anheuser-Busch Inbev SA (NYSE: BUD) and Walmart Inc. It gives Tesla a fifth product on the road and advances its push into the commercial EV market much sooner than anticipated. While it failed to revive the stock, it is good news for the long haul. The news caught the market by surprise because the semi wasn’t expected to roll off the assembly lines until next year. (NASDAQ: PEP) will be the first to get its hands on the 500-mile range, fully electric transportation truck. The company also announced that Tesla semis will roll out starting December 1. Musk offered three likely Pro-Russia outcomes for the conflict that infuriated Ukrainians and Americans, setting the tone for Tesla’s ugly 15% one-week plunge. It is a price tag that looks even more aggressive now that Tesla’s market value is two-thirds what it was at the start of the year.Īdding to the fireworks was Musk’s controversial Twitter poll about the Russia-Ukraine war. In yet another plot twist, Musk filed court documents that will move the $44 billion Twitter acquisition forward after he tried to get out of it for months. Making matters worse, CEO Elon Musk’s on-again, off-again affair with Twitter continues to distract investors.
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