Netflix Gets Downgraded and Ford Releases the Broncoย
Ford is facing pressure to get its stock price as from a valuation standpoint; you could fit three Fordโs in one Tesla. Thereโs substantial doubt as to whether Teslaโs position as the worldโs most expensive automaker will hold, given itโs still yet to prove pricing power and adequate economies of scale in car production to turn a long-term profit, but Ford isnโt going to wait to find out. Itโs released the Bronco, open-air Jeep for families. This is clever. The company knows how to make and sell SUVs, not like electric cars, so this is quite a low-risk bet. The car is expected to haul in a billion dollarsโ worth of sales, but thatโs a drop in the ocean. The mission here to steal back some investorsโ attention thatโs been lost to Elon Musk and Tesla. Will it be mission accomplished?
Netflix
UBS has put the cat among the pigeons (or bears among the bulls) with a downgrade of Netflixโs stock from โbuyโ to โneutral.โ The timing couldnโt be worse. The move has prompted a pullback less than one day before the release of clutch second-quarter results, so if the results are better than expected, a pop to the upside could be even more violent. UBS says current prices already reflect Netflixโs long-term competitive advantages (brand power and economies of scale and scope in Originals production), so thereโs little reason for it to keep climbing. It should trade โneutral,โ flat, according to UBS. But will it?ย
I am not a financial advisor and my comments should never be taken as financial advice.ย Investments come with risk, so always do your research and analysis beforehand.