Today we are watching…
1. Tesla (#tesla)
What goes up, must come down! Tesla’s unruly stock market madness continued yesterday, with an incredible 23% fall from $961 to $734. These kinds of market moves are reserved for flash crashes, biotech breakthroughs, and r/WallStreetBets. But what does Elon Musk know about rules? Analysts are blaming the sharp drop on Asian delivery delays caused by the coronavirus outbreak. However, others believe with a passionate intensity that Tesla is going to be the poster child of a broader economic bubble. Cheap talk all around. The best investors lack all emotion!
2. Peloton Interactive (#pton)
Peloton nose-dived 9% following the release of its third-quarter earnings yesterday. The company makes techy exercise bikes that allow the upper-middle class to join along in online spin classes from home. It’s a cool concept, but the economics aren’t pretty. The company is losing $654,000 per day, $55 million quarterly, despite revenue increasing 77% faster than analyst expectations and connected fitness subscribers, 96%. Simply put, Peloton is peddling hard but going nowhere. Perhaps, in years past, the tech firm might have admitted defeat and conceded a noble entrepreneurial failure. However, this is 2020!