Time to take cover: Amazon, and Tesla, the bubble is getting bigger and bigger

Jeff Bezos is a great mood: investors will have to pay the quarter and the Outlook for the world's largest Internet retailer euphorically celebrated, and the s

Time to take cover: Amazon, and Tesla, the bubble is getting bigger and bigger

Jeff Bezos is a great mood: investors will have to pay the quarter and the Outlook for the world's largest Internet retailer euphorically celebrated, and the stock has made a price jump of ten percent. ("Amazon is thrilled with mythical Figures").

Thus, the stock market has climbed in value from Amazon to 1.02 trillion dollars. Thus, the group is, according to Apple, Microsoft, and the Alphabet is the fourth U.S. company that has cracked the mark of one trillion dollars. According to Bloomberg, Bezos, with a fortune of 116 billion dollars the richest man in the world, on a par with Microsoft founder Bill Gates.

Amazon is strong

overvalued Because of the height of flight, plays for many investors it is not a role that the Amazon is overvalued, stock is enormous. A few Numbers: the consensus of The analysts for the current year and a profit increase of around 15 per cent to a profit per share of 26,43 dollars in advance.

Thus, the price-to-earnings ratio (p / e) is Amazon at exorbitant 77,8. Even if the financial professionals to pay after the good quarter, their estimates would increase by approximately 10 percent to 29 dollars per share, which is extremely unlikely -would be the p / e ratio is still bitter at 70.9.

the paper of the Internet is a rating of the merchant is much higher than the S&p 500, its p / e ratio is 18.5, anyway on a much higher level. Although analysts say the coming years of rapid growth in sales for the Internet retailer in advance of 332,3 billion dollars for 2020 on 388,2 for 2021 447,8 billion for 2022. However, the profit margin (profit divided by sales) is projected to stagnate in the current year, only 4.0 percent, 2021, to 5.0 percent, and in 2022, to 6.0 percent. Amazon 1.850,20 EUR +153,00 (+9,01%) Tradegate

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Thus, Amazon would be but still miles below the S&P500 for the financial professionals for the fourth quarter, a margin of 10.7 percent predicted to have. In the first quarter of 2020, it will aim at 11.0 percent and in the second to 11.5 percent.

Why investors to grab in spite of the enormous Overvaluation but powerful at the Amazon share? Because Amazon is a Growth stock, so a company that grows rapidly. So, sales are expected to shoot in the current year by 18.5 percent, for 2021 17 per cent are predicted. Each of which is a multiple of the S&P500 predicted revenue growth (2020: 5.2 percent).

Tesla is a much larger bubble than Amazon

an Even more drastic than in the case of Amazon, the over-valuation of Tesla stock. Also a couple of Numbers: last week, the record-breaking run of the paper from the manufacturer of electric cars has gone further, just after the presentation of the quarterly figures, which Tesla is measured by the stock market moved up in value with 115,5 billion dollars to the world's number two, and, therefore, Volkswagen is in third place (stock exchange value is 83.6 billion euros, to 91.9 billion dollars) has been displaced. The leader is Toyota, with a market capitalization equivalent to 230,2 billion dollars.

last year, sales of Tesla's shot at the record of 367.656 vehicles to the top. Thus, every car sold has a market capitalization of horrendous 314.150 dollars! CEO Elon Musk has announced that sales in the current year "would exceed 500.000 comfortable", which would correspond to a Plus of at least 36 percent. So each car would have a rating with astringent has 231,000 dollars.

This obviously makes no sense, or? Especially since the profit margin in the current year, a measly 2.2 percent, and it is extremely doubtful whether Tesla will ever generate a profit. For a longer-lasting Corona epidemic could adversely affect sales of Tesla and other manufacturers of electric cars on the world's largest market of China is enormous.

The analysts for 2021 predicted profit margin of 4.3 percent appears to be a pure Illusion. For comparison, Volkswagen has reported for 2019 with sales of more than 10.8 million, each vehicle is evaluated and thus with 7.740 euros on the stock exchange. Tesla 579,80 EUR -0.60 (-0,10%) Tradegate

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Short Sellers need to

stock up, However, Tesla is a Growth stock, to grow, sales continue to soar: from 31.9 billion dollars for 2020, to 40.4 billion for 2021, to 51.6 billion for 2022. For the back of the wind at Tesla has also ensured that many Short Sellers (short sellers) had to stock up because of the height of flight of the stock, which rise in the share price has been in the heats. Thus, the number of short-sold shares fell recently on 24,95 million, so bitter 18.6 percent of the circulation, however, are still sold off shares.

short sellers sell stock repurchase, in the anticipation of later favorable return and to make a profit. The more the paper increases, the greater the losses of the short eller will have to stock up, whereupon you inevitably. This Trend could continue in the next few weeks, in the case of Tesla.

investors favor Growth stocks

Why should the huge bubble at Amazon and Tesla in the next few months a lot of greater? Because investors in a weak economic environment, so one with low economic growth – 2019, the world economy grew 2.4 percent as slow as since the 2009 crisis, and low interest rates on Growth stocks, like Amazon, put. The weaker economic growth, the more growth companies are in demand.

the Fed continues to be the main driving engine for the Growth shares. The Corona should be a burden for the epidemic in the next few months, the U.S. economy, is expected to reduce the U.S. Central Bank, contrary to their previous protestations, the interest more vigorously, and the money printing program will continue to increase. This should spur US Growth-share more.

As cloudy as investors assess the prospects for the US economy, the interest rates on ten-year US bonds fell to only 1.56 percent. Thus, points (0.2 percentage points) are only 20 based on the record low of July 2016. The Numbers indicate that investors are getting increasingly worried of a US recession.

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Date Of Update: 31 January 2020, 14:00
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