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Business Insider
29-04-2025
- Automotive
- Business Insider
‘This Is a No-Go Zone,' Says Top Investor About Tesla Stock
Tesla (NASDAQ:TSLA) shares shot higher over the past week, sparked once again by Elon Musk's magic touch in moving the stock with just a few words. Protect Your Portfolio Against Market Uncertainty This time, Musk revealed that he plans to scale back his involvement with the White House and refocus his energy on leading the EV giant. Investors cheered the news, sending Tesla's stock soaring ~26% in the days following its Q1 earnings call on April 22. The skyward movement was somewhat ironic, considering the weak earnings numbers the company has reported. Slowing EV delivery figures shared in early April (down 13% year-over-year) gave way to disappointing financials, with automotive revenues dropping by ~20% and an EPS miss by 34%. One top investor, known by the pseudonym Value Portfolio, believes the 'atrocious' quarter is just the tip of the iceberg for TSLA, and is urging investors to stay far, far away. 'With a P/E ratio far exceeding competitors and no clear path to revenue in key areas, Tesla remains our top short pick for 2025,' explains the 5-star investor, who is among the top 2% of TipRanks' stock pros. Value Portfolio also pushed back on hopes that Tesla's growth in energy and services could offset its shrinking automotive business, arguing that both divisions are still too small to meaningfully move the needle. And then there's the biggest dream of all: Tesla's robotaxi ambitions. Here, too, Value Portfolio delivered a reality check, noting that despite all the hype, Tesla 'has yet to make a penny' from its self-driving tech. Meanwhile, Waymo has been earning income off of its robotaxi service for over a year. Adding insult to injury, the anti-Musk sentiment continues to grow, with boycotts a real possibility. Value Portfolio posits that this anger might not even be fully reflected in the Q1 numbers – as Trump only took office a few weeks into the new year. In other words, more Musk-inspired losses could be on the horizon. In the face of this gloomy financial picture, the investor argues that the company's P/E multiple of 400x is simply not reasonable. As a reference, Value Portfolio points out that other automobile competitors such as Ford, Toyota, and GM trade at single-digit valuations. 'We don't see the pain as being over, with a boycott combined with a tough overall economy and the company's stock starting in an overvalued position,' concludes Value Portfolio, who rates TSLA a Sell. (To watch The Value Portfolio's track record, click here) Wall Street is not quite as sour as Value Portfolio, but not exactly brimming with optimism either. With 17 Buy, 11 Hold, and 12 Sell recommendations, TSLA holds a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $284.74 implies almost no movement in the year ahead. (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
27-04-2025
- Business
- Business Insider
‘Time to Take a Bite,' Says Top Investor About Apple Stock
The past few days have been a bright spot for investors in Apple (NASDAQ:AAPL), as the company share price surged upwards by over 6%. While uncertainty regarding the status of the U.S.-China commercial spat continues to reign, the Trump administration seemed to convey a few signals that it was backing down from an all-out trade war. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. This included the president's assertion that he would 'be very nice' to China. However, it remains to be seen how this sticky situation will evolve, leaving plenty of unknowns for the market to navigate. Apple is among those uniquely exposed to rifts between the world's two largest economies – due to both its profound manufacturing operations in China as well as its sales into China's vast consumer market. All told, AAPL's share price is down some 16% year-to-date. As the company gears up to announce its FY 2025 Q2 results, analysts and investors alike will be looking for signs into how the company plans to address these threats to its future revenues and earnings. One top investor known by the pseudonym The Value Portfolio thinks AAPL will give investors plenty of reason for good cheer. 'The company's focus on core strengths and innovative potential makes it a valuable investment opportunity,' says the 5-star investor, who is among the top 2% of TipRanks' stock pros. Value Portfolio predicts that AAPL – which historically has beaten earnings – will once again surpass expectations. The investor notes that Apple was able to ship out 1.5 million iPhones to the U.S. ahead of the Trump tariff announcement, which should contribute to the positive surprise. Moreover, Value Portfolio points out that it is likely that a healthy number of consumers have already upgraded their iPhones in anticipation of tariff-related price increases. However, the investor also cautions that some of these purchases might only be felt in the current quarter. Acknowledging the slowing Greater China sales, Value Portfolio reminds investors that Apple experienced year-over-year growth in every other market during FY 2025 Q1. In that vein, the investor also takes solace in the fact that Apple enjoyed increases in its Mac, iPad, and Services segments. In addition, Apple's large breadth is a major asset, according to Value Portfolio, who also believes that the company will succeed in shifting manufacturing to avoid the worst impacts of any potential tariffs. 'The company continues to have a diversified portfolio of assets, and it has shown an ability to continue its growth despite its immense size,' concludes The Value Portfolio, who rates AAPL a Buy. (To watch The Value Portfolio's track record, click here) Wall Street is also ready to take a bite out of the AAPL. With 19 Buy, 13 Hold, and 3 Sell ratings, AAPL enjoys a Moderate Buy consensus rating. Its 12-month average price target of $236.47 has an upside of ~13%. (See AAPL 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.
