Latest news with #marketvalue
Al Bawaba
a day ago
- Automotive
- Al Bawaba
Tesla takes a hit as Musk battles Trump
Published June 7th, 2025 - 12:43 GMT ALBAWABA - Tesla Inc. has experienced one of the largest market value declines in its history, shedding nearly $380 billion since the start of 2025, as tensions rise between CEO Elon Musk and U.S. President Donald Trump. Market data shows that Tesla's valuation dropped from $1.3 trillion in early January to $950.63 billion by June 6, a 29.3% decline — the worst performance among major global firms this year. The sharp downturn coincided with an increasingly public dispute between Musk and Trump. The conflict was triggered by Musk's vocal criticism of Trump's new tax and spending bill, which proposes eliminating incentives for electric vehicles. Musk slammed the bill as a 'disgusting abomination,' claiming it would add $2.5 trillion to the national debt over the next decade. Trump responded by suggesting that federal contracts with Musk's companies could be cut, sparking panic among investors. Tesla's stock subsequently plunged 14% in a single trading day, erasing $152 billion from its market value — the largest one-day drop in the company's history. Musk's personal fortune also took a significant hit, shrinking by $34 billion, though he remains the world's richest individual with an estimated net worth of $334.5 billion. The feud escalated further when Trump, who had previously shown public support for Musk by purchasing a Tesla vehicle, said he was considering selling or donating it and referred to Musk as someone who had "lost his mind." — Business Standard (@bsindia) June 7, 2025 Beyond political drama, Tesla is also dealing with weakening demand for electric vehicles, increased competition from both legacy automakers and emerging startups, and declining sales in the European market. As of April, Tesla reported a 71% drop in earnings, further amplifying investor concerns over the company's future. Despite its setbacks, Tesla remains a key player globally, currently ranked 11th in market capitalization. Analysts warn that continued discord between Musk and Trump could have broader implications for the financial markets. With Tesla playing a critical role in major indices and investor portfolios, a prolonged conflict may lead to a market correction ranging from 5% to 10%. Experts point to the Tesla case as a clear example of how political instability and policy uncertainty can significantly impact corporate performance, particularly in sectors like technology and renewable energy that rely heavily on government support. © 2000 - 2025 Al Bawaba (
Daily Mail
2 days ago
- Automotive
- Daily Mail
Tesla shares rebound slightly after $150bn wipe-out triggered by Musk's spat with Trump
Tesla shares were sent into freefall on Thursday after Elon Musk sounded off about Donald Trump and his policies on social media this week. The debacle saw roughly $150billion wiped from Tesla's market value in one of the worst days in months. While the electric car maker's share price tumbled 14 per cent on Thursday, it rebounded slightly on Friday following some indications tempers were cooling between the duo. Earlier this week, Trump threatened to cut off government contracts to Musk's businesses, including rocket firm SpaceX, which has contracts worth tens of billions of dollars with the US government. In response, Musk fired back and said: 'Go ahead, make my day.' The saga seemed to quieten somewhat on Friday as Musk broke his silence by agreeing with an X post that claimed he never attacked Trump personally. The initial feud was ignited over Musk's opposition to Trump's 'Big Beautiful Bill', before he launched into a series of attacks on the president and alleged he was 'in the Epstein files. Trump quickly branded Musk 'crazy' and said he has 'lost his mind'. The president also moved to sell his Tesla that he bought from Musk when their relationship was rosier in March, in a parting insult after saying he ousted Musk from his White House. US subsidies and contracts at Federal and state level are worth billions to Tesla, which also currently benefits from a $7,500 tax credit available for electric vehicle purchases. Tesla shares closed at $295.14 this week, down around 14 per cent on less than a week ago and down nearly a quarter on where they were six months ago. But the shares are still around 66 higher than they were a year ago. Tesla shares rose more than 60 per cent between the start of November when Trump was elected to the end of 2024. But investor pressure over Musk's controversial role in the White House ultimately led to him to stepping down from his unofficial 'DOGE' department, which had sparked protests and vandalism directed at Tesla. Tesla shares were on a run more recently, however, after Musk confirmed the group would be testing an autonomous, driverless 'robotaxi' service in Austin, Texas, this month. Russ Mould, investment director at AJ Bell, said this week: 'Tesla shareholders are stuck in the middle of the battle zone as whatever happens to Musk will act as a proxy for the car company's share price. 'Trump has signalled he could terminate US government contracts with Musk's companies, causing Tesla's share price to crash 14 per cent in a day.' He added: 'Musk's outspokenness is becoming a liability for Tesla shareholders. 'He recently pledged to stay on as CEO for at least another five years, but if he cannot be restrained from stoking fires on the public stage, Tesla's board might have to think long and hard about his future with the business.' Neil Wilson, UK investor strategist at Saxo Markets, said on Friday: 'I spoke almost a year ago to Mark Spiegel of Stanphyl Capital in New York. 'He said it was just a matter of time before Musk and Trump fell out – the only question was who would shaft who first but his view was that sooner or later everyone "gets Musked". 'An ugly, name-calling, chest-thumping public brawl on Twitter between the richest guy in the world and the most powerful guy in the world – it's what the platform was made for. 'It's also whacked Tesla stock as bulls need to reassess their upside case for the carmaker. 'Both probably realise that this is doing each of them a lot of harm – Musk could lose billions of dollars in government contracts and tax credits, while Trump could see his 'big beautiful bill' fail to pass.'
Bloomberg
2 days ago
- Business
- Bloomberg
Stablecoin Firm Circle Jumps as IPO Pop Hits 205% on Second Day
Circle Internet Group's share price continues to increase, rising on Friday as much as 25% from its previous close, a day after the stablecoin issuer's more than doubled from the IPO price. The company's shares are trading at $94.50 each as of 9:45 a.m. in New York on Friday, more than three times higher than its $31 first-time share sale price. Its fully diluted market value has now risen to about $25 billion, according to Bloomberg calculations. The rally pushes the total increase to 205%.
Globe and Mail
28-05-2025
- Business
- Globe and Mail
Prediction: 2 AI Stocks Will Be Worth More Than Apple Stock Before the End of 2026
Apple is currently the third-most valuable company in the world with a market capitalization of $2.9 trillion. I think Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) can top that figure before the end of 2026. Here's what that would mean for shareholders: Amazon stock currently trades at $201 per share and the company is worth $2.13 trillion as of May 26. The stock price must increase 41% to $283 for Amazon to achieve a $3 trillion market value. Alphabet stock currently trades at $168 per share and the company is worth $2.04 trillion as of May 26. The stock price must increase 47% to $247 per share for Alphabet to achieve a $3 trillion market value. Here's what investors should know about Amazon and Alphabet. 1. Amazon Amazon reported solid first-quarter financial results. Revenue increased 9% to $155 billion and GAAP earnings jumped 62% to $1.59 per diluted share. But management gave cautious guidance. Second-quarter operating income is expected to land between $13 billion and $17.5 billion, which implies growth between negative 11% to positive 19%. Management cited uncertainty about tariffs as the reason for the broad range of possible outcomes. Looking ahead, e-commerce sales are expected to increase at 11% annually, digital ad spending is projected to grow at 15% annually, and cloud computing sales are forecast to increase at 20% annually, according to Grand View Research. Amazon enjoys a strong presence in all three markets, which puts the company on a glidepath to double-digit revenue growth through the end of the decade. Amazon is also leaning on artificial intelligence (AI) to drive efficiency gains across its retail business. CEO Andy Jassy recently told analysts the company is developing about 1,000 generative AI applications to assist sellers, provide customer service, manage inventory, plan delivery routes, and power fulfillment center robots. Those innovations should make Amazon more profitable. I think that sets Amazon on course for a $3 trillion market value in late 2026. Its current price-to-earnings (P/E) ratio of 32.7 is reasonable for a company whose earnings increased 62% in the recent quarter. And even if Amazon's earnings growth slows to 26% annually in the next six quarters, its market value can reach $3 trillion with no change in the P/E ratio. I think that is plausible, so long as tariffs don't pose a material headwind. 2. Alphabet Alphabet reported solid financial results in the first quarter, beating estimates on the top and bottom lines. Revenue increased 12% to $90 billion on particularly strong sales growth in cloud services. Operating margin expanded 2 percentage points and GAAP earnings rose 49% to $2.81 per dilute share. CEO Sundar Pichai said AI overviews are driving more usage of Google Search, and he mentioned positive feedback from developers and consumers on the latest Gemini model. As mentioned in the previous section, digital ad spending is projected to increase at 15% annually and cloud computing sales are forecast to increase at 20% annually, according to Grand View Research. Like Amazon, Alphabet enjoys a strong position in those markets, which puts the company on a glidepath to double-digit sales growth through the end of the decade. Importantly, Alphabet is losing market share in digital advertising, but Google Search and YouTube remain two of the most engaging web properties. So, ad sales may lag the industry average, but double-digit growth is still plausible. Additionally, Google gained a percentage point of market share in cloud infrastructure and platform services over the past year. That trend may continue due to strength in AI. Forrester Research has recognized Google as a leader in AI infrastructure and foundational large language models. Alphabet has another significant opportunity in autonomous driving. Its Waymo subsidiary offers robotaxi services in four U.S. cities, and will add three more in the coming months. That makes it the early leader in a market that could exceed $1 trillion, according to Uber. But while Waymo may create significant shareholder value in the next decade, it's unlikely to move the needle in the next six quarters. Nevertheless, Alphabet can still attain a $3 trillion valuation over that period. Its current valuation of 18.7 times sales is reasonable for a company whose earnings grew 49% in the recent quarter. And if Alphabet's earnings increase at 30% annually over the next six quarters, its market value can reach $3 trillion without any change in the PE ratio. I think that is plausible, provided there are no complications from pending antitrust lawsuits. Should you invest $1,000 in Amazon right now? 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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Uber Technologies. The Motley Fool has a disclosure policy.
Bloomberg
27-05-2025
- Business
- Bloomberg
Meituan, JD.com's Food Delivery War Worsens $100 Billion Rout
Shares of Meituan and have lost a combined $100 billion in market value since late last year, highlighting the fallout of a costly battle to win a bigger slice of the Chinese food delivery business. The companies' Hong Kong-listed shares have both dropped over 30% from a peak reached in early October and rank among the worst performers on the benchmark Hang Seng Tech Index. The stocks have suffered as DeepSeek's technological advancement fuels a pivot toward firms with greater artificial intelligence capabilities, and deployed a cash-burning strategy to promote its food platform.
