After a historic approval to compensate CEO Elon Musk his $56 billion pay package, Tesla (TSLA) is today’s hottest stock. Speculators, bearish over Tesla’s valuations, misunderstand the importance of Musk’s leadership and branding of the Tesla name.
TSLA stock trades at a price-to-earnings ratio of 46.6 times. Its P/E is a fraction of that of Advanced Micro Devices (AMD) or Nvidia (NVDA). The former risks a decompression in P/E multiples as PC GPU sales continue to fall. The latter is a powerhouse in AI server and PC GPU markets.
CEO Musk is also a billion Nvidia AI servers worth billions of dollars
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Rational investors who dismissed GameStop (GME) as nothing more than a 2021 meme stock underestimated the power of the mob. GameStop sold shares on two separate occasions. Short sellers against GME stock lost $2.2 billion on the week of May 14, 2024. The firm happened, by coincidence, to raise over $2 billion by selling 75 million shares.
At $29.12, GME stock trades at only five times its cash level on hand.
In the aerospace sector, Boeing (BA) will investigate quality issues related to 787 planes not yet delivered. It discovered that builders incorrectly installed hundreds of fasteners on the fuselage.
BA stock is down by 30.68% YTD. Its peer, GE Aerospace (GE), gained 52.95% in that time. Still, GE stock has a “double top” bearish line at $170.
