Tesla and Rivian Overvalued

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Tesla and Rivian Overvalued

The stocks of electric vehicle-makers Tesla (Nasdaq: TSLA) and Rivian (Nasdaq: RIVN) are overvalued, says valuations expert and Veristrat Founder Bharat Kanodia in a new episode of the Early Bird podcast.

Numbers: Kanodia says that Tesla has a very high price-to-earnings (P/E) ratio and that Rivian is still losing money, thus explaining why they are overvalued.

Big Picture: Looking at the larger market, Kanodia says that other stocks that support electric-vehicle companies, such as those who make parts, might be better for investors.

Alternative Assets: While Kanodia says that his valuation method cannot be applied to cryptocurrencies, he says that it can be applied to non-fungible tokens (NFTs).

Final Thoughts: What advice does Kanodia have for investors? Listen to a new episode of the Early Bird podcast to find out.

Notables

Notable Earnings Today: Squarespace (NYSEL SQSP), Niu (Nasdaq: NIU), Ciena (NYSE: CIEN), Intrepid Potash (NYSE: IPI), Vermilion Energy (NYSE: VET), 908 Devices (Nasdaq: MASS), Alpha Metallurgical (NYSE: AMR), Clarus (Nasdaq: CLAR), Eagle Pharmaceuticals (Nasdaq: EGRX), ThredUp (Nasdaq: TDUP), Rover Group (Nasdaq: ROVR), LifeMD (Nasdaq: LFMD).

Notable IPOs Today: Andretti Acquisition Corp. (Nasdaq: WNNR), Atlantic Coastal Acquisition Corp. II Class A Common Stock (Nasdaq: ACAB), Consilium Acquisition Corp I, Ltd. Class A Ordinary Share (Nasdaq: CSLM).

Notable Equity Crowdfunding Campaigns Ending Today: Klevr Tea (Honeycomb), WiTopia (StartEngine), Dome Audio (PicMii).

Notable Economic Events Today: Consumer Credit (3:00 p.m. ET).

Cryptocurrency Fantom Sinks as Cronje Quits

The price of cryptocurrency Fantom and associated tokens plummeted on Sunday after it was revealed that developer Andre Cronje was quitting.

Details: Fellow builder Anton Nell tweeted early on Sunday morning that he and Cronje “are closing the chapter of contributing to the defi/crypto space.”

Numbers: Tokens associated with Cronje decreased rapidly on Sunday, including Fantom, which dropped 18%.

Background: Fantom, an open-source decentralized smart contract platform, dates back to 2018. In the past year, the price of Fantom more than doubled.

Final Thoughts: Several other crypto prices also dropped on Sunday, including Bitcoin and Ethereum, although not as much of a drop as Fantom.

Commodity-Based Stocks to Consider

Commodity prices have jumped lately. Here are three stocks involved in commodities.

Century-Long: Century Aluminum (Nasdaq: CENX), a U.S.-based producer of aluminum, is up 132% in the past 6 months.

Real Steel: Nucor (NYSE: NUE), a U.S.-based producer of steel, is up 22% so far in 2022.

Chemistry: FMC (NYSE: FMC), a U.S.-based chemical manufacturing company, is up 26% in the past 6 months.

Final Thoughts: Investing in these types of companies can provide indirect exposure to commodities.

Trends to Watch

Bed, Bath & Big Bet: Chewy Co-Founder Ryan Cohen Takes Large Stake in Bed Bath & Beyond, Pushes for Changes (The Wall Street Journal)

Pain at the Pump: U.S. crude oil briefly tops $130 a barrel, a 13-year high on possible Western ban of Russian oil (CNBC)

The Struggle: Bitcoin boom leaves gun-shy advisors struggling to provide crypto guidance to clients (Yahoo! Finance)

Third Time’s a Charm: NYCE Returns to Wefunder for 3rd Reg CF Offering for Real Estate Investment (Crowdfund Insider)

Sold: Activist Carl Icahn said to sell remaining stake in Occidental Petroleum (Seeking Alpha)

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