Tesla's in Trillionaires' Club & La Niña Exacerbates Crisis

26 Okt 2021

The week started for the US stock market for the 9th day of growth in a row. A surprisingly impressive series considering the heap of problems that now surrounds the global economy. Apparently, everyone wants to have time to buy before the publication of the reports of the FAAMG group. As a reminder, all key US tech companies are reporting this week.

Facebook reported yesterday. The company's results can hardly be called very impressive, at least in relation to the expectations of experts. On the one hand, the profit, albeit insignificantly, exceeded the forecasts, but the incomes in the third quarter did not meet expectations, and in the fourth quarter they are planned to be smaller than the experts expected.

But that didn’t stop the stock from rallying after the market closed. The main reason for this is the expansion of the share buyback program by 50 billion. Recall that the scandal with information leakage from the company is in full swing and continues to put pressure on its quotes, so we would not be in a hurry to buy Facebook shares.

But everyone was in a hurry to buy Tesla shares yesterday. Quarterly reports published last week led to a revision of forecasts for the company's share prices by a number of analysts. But the main positive news was the information that Hertz will buy 100,000 electric vehicles. The largest batch of purchased electric cars in history, reaching a new level of being - that's all.

By the way, this is the same Hertz, which initiated bankruptcy proceedings a year ago and sold its fleet of hundreds of thousands. But who cares about it and who remembers it? No one is interested in Tesla's investment metrics either: p / e above 500 (for a dollar of Tesla's profit, you need to pay more than $ 500), p / b above 40 (a dollar related to Tesla assets costs $ 40 - for example, a dollar is on the company's account , but for buyers of the company's shares it will cost 40), etc.

Well, we cannot but note that this whole holiday is taking place against the backdrop of a global energy crisis, which at the start of the week received a new reason: the La Niña pattern emerged in the Pacific Ocean. China, Japan, South Korea - have already warned of colder weather and colder winters in the future. Natural gas prices went up again.