It's 'Going to Be Like a Shockwave' When Tesla's AI Innovations Hit. Should You Buy TSLA Stock First?
Tesla (TSLA) delivered record third-quarter results that CEO Elon Musk believes represent just the beginning of a transportation revolution powered by artificial intelligence (AI).
The electric vehicle (EV) maker posted new highs across deliveries, energy deployments, and free cash flow, generating $4 billion while building total cash and investments to over $41 billion.
After earnings, is Tesla stock a buy, a sell, or fairly valued?
Tesla TSLA released its third-quarter earnings report on Wednesday, Oct. 22. Here’s Morningstar’s take on Tesla’s earnings and stock.
Key Morningstar Metrics for Tesla
- Fair Value Estimate: $300.00
- Morningstar Rating: ★★
- Morningstar Economic Moat Rating: Narrow
- Morningstar Uncertainty Rating: Very High
What we thought of Tesla’s Q3 earnings
Tesla’s third-quarter earnings reflected sequential improvement driven by record auto deliveries and energy storage deployments.
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Read MoreLive: Will Apple Surge Higher After Q4 Earnings Tonight?
Shares of Apple (Nasdaq: AAPL) 2.3% in overnight trading. Investors in the company rode a roller coaster after-hours as Apple shares initially sank after their earnigns release, and then popped on news the company’s Holiday quarter would surpass Wall Street expectations.
We listened to Apple’s conference call and are providing a summary of each question from Wall Street and Apple’s response.
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Read MoreAnalysts Rally Behind Apple After Strong Q4
On Thursday, Apple Inc. (NASDAQ:AAPL) delivered a fourth-quarter performance, prompting Wedbush Securities’ Dan Ives to call it a “pound-the-table moment.” CNBC’s Jim Cramer also said that critics “owe us an explanation.”
Analysts Rally Behind Apple After Strong Q4
During a CNBC segment,
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Read MoreDow Jones Today: Stock Futures Point Lower as AI Bubble Concerns Continue; AMD Shares Drop Despite Strong Results
Stock futures pointed mostly lower Wednesday, the record-breaking 36th day of the U.S. government shutdown, after major indexes dropped yesterday on concerns about an AI bubble.
Futures associated with the tech-heavy Nasdaq and benchmark S&P 500 were down 0.3% and 0.2%, respectively, while those affiliated with the blue-chip Dow Jones Industrial Average were little changed.
Read MoreThe Burst
Market Commentary: 1 Stock Buffett Did NOT Sell Has 5x Growth
Perhaps the most anticipated 13F filing of all is from Berkshire Hathaway. Investors muse: What did Buffett just buy? What did Berkshire Hathaway sell?
Read MoreThe Ivy
Did This Weird Ratio Signal The Top?
Correlations are not causation but they can be helpful in spotting weird patterns that reveal where the market may be heading next. One such correlation pattern that has surfaced recently is that of the ratio between the DIA and QQQ.
One trader spotted that when the ratio, DIA/QQQ, hits a low, it has often preceded a correction in the QQQs.
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