TSLA
📉 Tesla has been the hardest-hit among the ‘Magnificent Seven’ tech stocks this year, experiencing a significant 40% drop in its share price.
💸 Despite the sharp decline, its valuation remains extremely high, with the Price-to-Earnings (PER) ratio contracting from 198 to 118 based on trailing twelve months earnings.
📊 This performance is part of a broader trend where previously high-flying, highly valued tech stocks are facing market corrections and multiple compressions.
@Academiadeinversion:
“Which were the companies valued most demandingly by the market? Well, the seven magnificent ones that did especially well. They are very good businesses, but the valuations were high, and this year they are all losing in the stock market. Nvidia, which rose the most last year, is falling more than 24%. Meta is falling 14%. Tesla is the one falling the most of all the seven magnificent ones, down 40%. Amazon falls 21%. Google 20%. Apple another 20%. And the one resisting the most, the one resisting best is Microsoft, which was also the one that rose the least last year, falling around 12%. And this causes the multiples, which were very demanding, to start falling… Tesla from 198 to 118. These are the PER of the last 12 months, which obviously needs to be adjusted. The current PER doesn’t matter much if in the future the company can generate much more profit. So, I’m talking about valuation level, but optically, as we can see, the valuations, the multiples are high and have compressed.”
Watch the exact part of the video where @Academiadeinversion talks about Tesla, Inc. here:
Watch the video on YouTube
Read more articles analyzing Tesla, Inc. (TSLA) at the following link. TSLA stock.
