Tesla and Rivian Overvalued
Does the valuation make sense?
Today is Monday, March 7, 2022.
New to this newsletter? Sign up here.
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.
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)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Questions or comments? Hit reply to reach out.