Netflix Gets Downgraded and Ford Releases the BroncoĀ
Ford is facing pressure to get its stock price as from a valuation standpoint; you could fit three Fordās in one Tesla. Thereās substantial doubt as to whether Teslaās position as the worldās most expensive automaker will hold, given itās still yet to prove pricing power and adequate economies of scale in car production to turn a long-term profit, but Ford isnāt going to wait to find out. Itās 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 dollarsā worth of sales, but thatās a drop in the ocean. The mission here to steal back some investorsā attention thatās 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 Netflixās stock from ābuyā to āneutral.ā The timing couldnāt 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 Netflixās long-term competitive advantages (brand power and economies of scale and scope in Originals production), so thereās little reason for it to keep climbing. It should trade āneutral,ā flat, according to UBS. But will it?Ā
I am not a financial advisor and my comments should never be taken as financial advice.Ā Investments come with risk, so always do your research and analysis beforehand.
