Latest news with #StoneFoxCapital
Globe and Mail
5 days ago
- Automotive
- Globe and Mail
‘Too Soon to Celebrate,' Says Investor About Tesla Stock
Tesla (NASDAQ:TSLA) bulls have had the June 12th Robotaxi date circled on their calendar for months by now, and the excitement is growing as the day approaches. Confident Investing Starts Here: Though the company has been teasing the idea of self-driving cars for over a decade, its track record has not totally matched the hyperbole of CEO Elon Musk. Indeed, Musk stated way back in 2013 that Tesla was aiming to have the technology to drive 90% of all miles by 2016. Flash forward to the present day, and what was once revolutionary has now become a battlefield full of fierce competition, and Tesla has now clearly fallen behind Google's Waymo for primacy in the self-driving market. Waymo is now operating some 250,000 weekly trips, and has staked out 27% of the local rideshare market in San Francisco. Can the Robotaxi event succeed in flipping the narrative back to Tesla? One investor, known by the pseudonym, Stone Fox Capital advises investors not to pop the champagne bottles just yet. 'Tesla already appears valued based on initial robotaxi success, and this doesn't appear guaranteed,' states the 5-star investor. Stone Fox notes that TSLA is so far behind Waymo that the term 'taking a Waymo' might soon become part of everyday language. Launching a small 10-car pilot program in Austin, the investor argues, isn't exactly the game-changer some investors are hoping for. 'The big risk is that a robotaxi delay continues to allow Waymo to control the market while the robotaxi service launch appears already priced into the stock,' adds Stone Fox. Moreover, some of Musk's recent comments – such as the fact that the 'same strengths and weaknesses' of human drivers will be present with Tesla's FSD technology – are not exactly inspiring confidence. While Stone Fox isn't discounting Tesla's potential to eventually rake in the dollars, the investor doesn't see that happening anytime soon. 'Investors can likely buy Tesla at a lower price once the far-flung excitement disappears, even if the company is on the path to a successful robotaxi business,' concludes Stone Fox Capital, but for now the investor's advice is to steer clear of this one and Sell. (To watch Stone Fox Capital's track record, click here) Meanwhile, Wall Street is firmly divided on this one. With 16 Buy, 10 Hold, and 11 Sell recommendations, TSLA has a consensus Hold (i.e. Neutral) rating. The average price target of $282.70 suggests about 18% downside from current levels – an outlook Stone Fox would likely endorse. (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. Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Globe and Mail
26-03-2025
- Business
- Globe and Mail
‘This Isn't a Fairy Tale,' Says Investor About Intel Stock
If life were a fairy tale, Intel's (NASDAQ:INTC) new CEO would take the reins and, with a wave of a wand, spark a transformation that lifts the Silicon Valley pioneer back to the pinnacle of the tech industry. Light Up your Portfolio with Spark: Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. That's the hope riding on Lip-Bu Tan. The new INTC head does have the credentials to perform impressive feats of corporate strength. He previously led Cadence Design Systems shares to a 3,200% increase during his time helming the company between 2009 to 2021. So, is a similar turnaround in the cards for Intel? According to investor Stone Fox Capital, the script may be exciting – but the plot twist won't arrive anytime soon. 'INTC stock is likely to struggle in the near term as the new CEO implements disruptive changes,' predicts the 5-star investor. And the hurdles are significant. Intel is lagging badly in the AI GPU race, and its foundry business has been struggling massively. Stone Fox describes the company's operations as such a 'mess' that recent rumors suggested Intel might break itself apart just to regain focus. Tan, however, is wasting no time. Reports suggest he's planning on making significant changes to the company's chip manufacturing, shifting Intel's AI approach, and cutting INTC's workforce. While Stone Fox notes that Intel has over 3x the amount of workers that Nvidia and AMD each employ, the investor believes that slashing the head count will not exactly entice would-be talent to join INTC's ranks. And even with these moves in play, a turnaround won't be quick. According to Stone Fox, real progress will take time – meaning investors shouldn't count on a near-term rally. 'Intel probably has another 18+ months of restructuring before the stock becomes interesting from the turnaround view,' adds the investor. The company's relatively low valuations are not enough to attract Stone Fox, who foresees more losses before any potential gains. Therefore, the investor believes this is one to stay away from at the present time. 'The stock likely gets worse before getting better because the new CEO isn't a miracle worker,' concludes Stone Fox, assigning INTC shares a Sell rating. (To watch Stone Fox Capital's track record, click here) Wall Street has yet to make a determination regarding the new CEO. Its 27 Hold ratings vastly outnumber its 1 Buy and 4 Sell ratings, giving INTC a consensus Hold (i.e. Neutral) rating. INTC's 12-month average price target of $23 implies a modest 5% downside in the year ahead. (See INTC 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. Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Questions or Comments about the article? Write to editor@
