{"id":104798,"date":"2017-04-14T10:15:41","date_gmt":"2017-04-14T14:15:41","guid":{"rendered":"http:\/\/countingpips.com\/?p=104798"},"modified":"2017-04-14T06:16:18","modified_gmt":"2017-04-14T10:16:18","slug":"friday-charts-teslas-absurd-valuation-and-amazons-endless-warpath","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/04\/friday-charts-teslas-absurd-valuation-and-amazons-endless-warpath\/","title":{"rendered":"Friday Charts: Tesla\u2019s Absurd Valuation and Amazon\u2019s Endless Warpath"},"content":{"rendered":"
April 14, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Friday<\/p>\n

It\u2019s Friday in the Wall Street DailyNation. And that means we\u2019re ditching our regular routine of commentary-based articles. Instead, we\u2019re using charts to present some important investment and economic insights.<\/p>\n

This week, we\u2019re tackling the pesky debate about Tesla\u2019s valuation and the Great Retail Apocalypse of 2017.<\/p>\n

And of course, we\u2019re sharing ways to profit from each. Don\u2019t miss the opportunities!<\/p>\n

The Absurdity of Tesla<\/h2>\n

In early March<\/strong><\/a>, we covered Bitcoin\u2019s historic breakout. For the first time ever, the cryptocurrency traded higher than one ounce of gold.<\/p>\n

Big whoop? Not really. But I digress\u2026<\/p>

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This week, we\u2019re covering the historic breakout of electric carmaker Tesla (TSLA).<\/p>\n

For the first time ever, the company\u2019s market cap (briefly) surpassed General Motors (GM), to become the most valuable car company in America, at $51 billion.<\/p>\n

Way back in December 2013, a younger, scruffier Lou deemed Tesla\u2019s valuation at $18 billion \u201cabsurd\u201d on CNBC\u2019s Closing Bell<\/em><\/strong><\/a>. My on-air adversary, The Motley Fool\u2019s Matthew Argersinger, reminded<\/strong><\/a> me of my bold denouncement this week on Twitter as the company rallied north of his $50-billion market-cap prediction.<\/p>\n

Touch\u00e9. But I still<\/em> think Tesla\u2019s valuation is \u201cabsurd.\u201d And the data still <\/em>back me up.<\/p>\n

\"The<\/p>\n

Tesla still hasn\u2019t generated a profit \u2014 10 years into its existence. The company produces a fraction of the number of cars that GM and Ford produce, so its revenue lags way<\/em> behind. Not to mention the company\u2019s heavily indebted, too.<\/p>\n

So based on every conceivable traditional metric, the company fails to stack up.<\/p>\n

What\u2019s driving Tesla\u2019s current valuation, then?<\/p>\n

Hope.<\/p>\n

Elon Musk even admits it.<\/p>\n

\"Elon<\/p>\n

Bidding up shares on the future potential works fine during rip-roaring bull markets. Not so much when the stock market takes a turn to the south. And it\u2019s only a matter of time before the latter happens.<\/p>\n

I\u2019m smart enough to avoid shorting such an overly hyped stock. In this case, the best way to bet on a less absurd valuation for Tesla is via January 2019 put options.<\/p>\n

I\u2019ll check back in then to see if I\u2019m still wrong, Matthew.<\/p>\n

Signs the Retail Apocalypse Keeps Getting Worse<\/h2>\n

I first covered the Great Retail Apocalypse<\/strong><\/a> of 2017 in my March 24 column.<\/p>\n

Since then, my colleagues have shared multiple ways (see here<\/strong><\/a> and here<\/strong><\/a>) to profit from the untimely demise of the sector \u2014 triggered by Amazon\u2019s domination of every market it enters.<\/p>\n

So what are you waiting for?<\/p>\n

The latest data point to an ever-quickening pace of destruction.<\/p>\n

Year-to-date store closings already outpaced the number experienced during the Great Recession, according to a recent analysis by Credit Suisse Group AG analyst Christian Buss.<\/p>\n

A whopping 2,880 closings have been announced so far this year. That compares with 1,153 in the same period last year. If we extrapolate this pace out for the entire year, there could be almost 2,500 more <\/em>closings than we experienced in 2008.<\/p>\n

\"Annual<\/p>\n

The latest retail employment report paints a similarly dismal picture for the industry.<\/p>\n

The latest data dump from the Bureau of Labor Statistics revealed a decline of 29,700 retail jobs in March. That comes on the heels of a loss of 30,900 jobs in February.<\/p>\n

\"Month-over-month<\/p>\n

The two-month rapid decline represents the largest since \u2014 you guessed it \u2014 the Great Recession. If you\u2019re looking for short-selling opportunities, there\u2019s no better industry to focus on.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese
\nChief Investment Strategist, Wall Street Daily<\/i><\/p>\n

The post Friday Charts: Tesla\u2019s Absurd Valuation and Amazon\u2019s Endless Warpath<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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By WallStreetDaily.com It\u2019s Friday in the Wall Street DailyNation. And that means we\u2019re ditching our regular routine of commentary-based articles. Instead, we\u2019re using charts to present some important investment and economic insights. This week, we\u2019re tackling the pesky debate about Tesla\u2019s valuation and the Great Retail Apocalypse of 2017. And of course, we\u2019re sharing ways […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-104798","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/104798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=104798"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/104798\/revisions"}],"predecessor-version":[{"id":104800,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/104798\/revisions\/104800"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=104798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=104798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=104798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}