markets

David Crowther12/16/24

Latest rally takes Tesla’s price-to-earnings ratio over 130x

The world’s most valuable automaker has been riding a postelection wave unlike almost any other company. Since the start of November, Tesla’s stock has risen 75%, taking the company’s market cap north of $1.37 trillion at the time of writing — and making Elon Musk richer than any human being has ever been, with his own personal net worth topping $400 billion.

The enthusiasm among investors to own Tesla, which has seen vehicle-delivery growth grind to a halt this year, has stretched the company’s valuation once again. Per data from FactSet, the company’s price-to-earnings ratio (looking at earnings forecasted over the next 12 months) has hit 131x, the highest figure since late 2021, when the company was just beginning to rack up consistent profits quarter after quarter.

Tesla price-to-earnings ratio — Sherwood News

With equity valuations more of an art than a science, Tesla’s valuation has been hotly debated on Wall Street for more than a decade. Those arguing that Tesla is overvalued tend to point to the rest of the automotive industry, which can often trade on single-digit price-to-earnings ratios. Ford, for example, is trading on 6x P/E, and General Motors is on 5x, per FactSet. The counterargument often made is that given its leadership in electric vehicles and investment in autonomous-driving technology, Tesla shouldn’t be valued like a car company, but a tech company — a sector where investors are often happy to invest at triple-digit P/E ratios or in completely unprofitable companies, expecting innovation to drive serious profits in the future.

As we stated earlier this year, the fastest-growing part of Tesla’s business in its latest quarter was its energy-generation and storage division, where revenues rose to nearly $2.4 billion, up 52% year on year.

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General Fusion CEO Greg Twinney spoke with Sherwood News from the Nasdaq during the stock’s first day of trading.

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markets

J. Edward Moreno7/7/26

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

Meta CEO Mark Zuckerberg visits U.S. Capitol for Senate meetings

markets

Paige Oamek6/30/26

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

Revenue of $11.0 billion (estimate: $10.8 billion).
Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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