Latest news with #HuntingAlpha
Business Insider
6 days ago
- Automotive
- Business Insider
‘Plenty of Reasons,' Says Investor About Tesla Stock
To listen to Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk, the sky is truly the limit. The company head made some bold pronouncements on the company's Q2 earnings report last month, such as the prediction that 'we will probably have autonomous ride-hailing in probably half the population of the US by the end of the year.' Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Of course, world-changing ambitions are nothing new for Musk, who has made no secret of his designs of making Tesla the most valuable company in the world. Many investors are happy to go along for the ride, though it has been a bumpy one over the past year. While TSLA's share price is up 71% over the past twelve months, 2025 has seen its shares of ups and downs and it has fallen 16% for the year. Indeed, Musk's declining popularity across large swaths of the U.S. and Europe – key markets for Tesla – drove EV sales down during the first half of the year. Despite the eye-watering figures of the technologically ambitious projects, one investor known by the pseudonym Hunting Alpha is latching onto the real-world numbers. The investor believes that these provide plenty of reasons for why TSLA is a no-go zone for now. 'I continue to be bearish on the stock due to mounting challenges in its current business and seemingly overoptimistic expectations on new developments,' explains Hunting Alpha. The investor cites the expiration of the EV tax credits, which add another pressure point for declining sales figures. Though Hunting Alpha does acknowledge that there could be a sequential increase this quarter as consumers rush to buy EVs before the $7,500 cushion goes away – CFO Vaibhav Taneja encouraged buyers to 'place your order now' – the investor anticipates a 'sharp demand slowdown' in the months that follow. Another cause for concern is the 'robotaxi dream,' which the investor believes is a bit farther out on the horizon than bulls might be hoping for. Take Musk's pronouncement that the company will available for half the U.S. by the end of the year. Currently, Hunting Alpha points out, Tesla is present in just two major regions – Austin, Texas and the San Francisco Bay Area – which are home to roughly 9 million people. 'Going from 9 million to 174 million in just 5 months seems rather unrealistic to me,' emphasizes Hunting Alpha, who reminds investors that there some 347 million Americans. While the future might be bright, it's just not enough for Hunting Alpha at present. 'I cannot ignore the headwinds in its current business,' concludes Hunting Alpha, who rates TSLA a Sell. (To watch Hunting Alpha's track record, click here) Wall Street, however, sees the bull and the bear case, as well as the more neutral middle ground. With 14 Buys, 15 Holds, and 8 Sells, TSLA holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $307.23 has a downside of ~9%. (See TSLA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Business Insider
30-07-2025
- Business
- Business Insider
‘Don't Rush In Before Earnings,' Says Investor About Amazon Stock
Amazon (NASDAQ:AMZN) stock is one of the most closely watched names this Q2 earnings season. As a core member of the Magnificent 7 and a powerhouse in both e-commerce and cloud computing, Amazon offers key insights into broader economic trends, from consumer sentiment to momentum in the AI space. That's why all eyes will be on the company's quarterly results, set to be released Thursday, July 31, after the market closes Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Against this backdrop, how should investors be positioning ahead of the report? One investor, known by the pseudonym Hunting Alpha, believes that a more measured approach is warranted at this stage. 'AMZN stock is attractively valued but that is insufficient to make me a buyer ahead of the Q2 FY25 earnings release,' explains the investor. Hunting Alpha is not convinced that retail data for Amazon will outpace expectations by all that much, nor is the investor all that gung-ho regarding the company's recent 4-day Prime Day extravaganza. In fact, while overall revenue might be increasing, the investor expects the growth deceleration in commerce sales to continue this quarter and into the future. When it comes to AI, this one is a bit of a double-edged sword for Hunting Alpha, at least for now. On the one hand, 'AI-driven efficiencies' should lead to margin improvements, which the investor predicts will be in the 50% range. On the other hand, Hunting Alpha believes that Amazon is still firmly in the spending stage, and the investor expects the company to increase its quarterly capex to ranges north of $30 billion, eroding free cash flow margins. 'Whilst I am confident that generally these higher capex spends on AI technology infrastructure is a good move, I think the risks may be understated and not discussed enough,' adds Hunting Alpha. From a valuation standpoint, AMZN's 1-year Forward Price-to-Earnings multiple of 36.4x sits just 5% above its peer group average – a notable shift from the 41% premium it has historically commanded, the investor points out. Even so, the mix of positives and potential headwinds leaves Hunting Alpha hesitant to make a definitive call. 'I prefer to wait for more clarity before turning bullish again,' sums up Hunting Alpha, who is assigning AMZN a Hold (i.e. Neutral) rating. (To watch Hunting Alpha's track record, click here) Wall Street, in contrast, is fully onboard the Amazon express. With 44 Buys and a single Hold, AMZN boasts a Strong Buy consensus rating. Its 12-month average price target of $259.39 suggests an upside of ~12% from current levels. (See AMZN stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Business Insider
15-07-2025
- Business
- Business Insider
Can Palantir Stock Be as Big as Microsoft? Here's What This Investor Predicts
Palantir (NASDAQ:PLTR) stock has certainly enjoyed a meteoric rise over the past 3 years (up 1575%), leading some to wonder: could it become as big as Microsoft one day? Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. This surge in valuation isn't just hype for hype's sake – it's been fueled by steadily rising revenues, robust margins, and an expanding roster of high-profile clients in both government and commercial sectors. In other words, there are real business achievements behind the headlines. Even so, the debate rages on as to whether this success actually justifies Palantir's soaring share price. By almost any metric, the stock trades at valuations far beyond its sector peers – sometimes by thousands of percent – raising questions about just how much optimism is already priced in. One investor, known by the pseudonym Hunting Alpha, has weighed in on the discussion. He's made the case that Palantir has what it takes to become the next Microsoft ('this is no pipe dream'), but despite his conviction in Palantir's potential, he isn't putting all his chips on the table just yet. 'I have consistently believed that Palantir can become as big as Microsoft for many months now. And recent commentary from company insiders that it is building the next AWS helps support the longer-term visionary potential for Palantir… Despite my conviction in Palantir's ability to grow into its high valuation, the current near-peak premium valuation vs. peers leaves virtually zero margin for error,' explains the investor. That's why, in Hunting Alpha's view, Palantir's path forward depends on its ability to fully leverage what sets it apart: its powerful ontology platform. With expectations already sky-high, only genuine breakthroughs – like becoming the 'go-to company' for organizations looking to harness AI and data – can justify such lofty valuations. That said, Hunting Alpha points out that Palantir still has a long runway for growth, with fewer than 1,000 customers. He also notes that the company's reported 'flat' average revenue per customer likely hides increased spending from existing clients, reflecting deeper relationships and growing platform usage. So, even though Palantir's execution has been 'flawless so far,' the investor ultimately concludes that a cautious approach is warranted, given just how much optimism is already baked into PLTR's share price. 'I believe it is prudent to dial down my view on the stock,' sums up Hunting Alpha, who is assigning PLTR a Hold (i.e. Neutral) rating. (To watch Hunting Alpha's track record, click here) That's the prevailing view on Wall Street as well. With 9 Holds, 3 Buys, and 4 Sells, PLTR earns a consensus Hold rating. And with an average price target of $106.71, analysts see ~28% downside from current levels. (See PLTR stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
