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- Tesla at $25 Trillion?
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,431.60 ( ⬇️ 0.039%)
Nasdaq Composite @ 17,688.88 ( ⬆️ 0.12%)
Bitcoin @ $66,319.27 ( ⬇️ 0.47%)
Hey Scoopers,
Happy Monday! Here’s what we’re covering today:
👉 Tesla’s bullish outlook
👉 An AI IPO
👉 Stablecoins gain traction
So, let’s go 🚀
Market Wrap 📉
The tech-heavy Nasdaq Composite index ticked higher on Friday to close at a fresh record high for the fifth consecutive session.
Comparatively, eight of the 11 sectors in the S&P 500 slid during the session, while 360 stocks in the flagship index traded in the red. Cooling inflation numbers boosted the S&P 500 and Nasdaq indices last week.
Oil prices surged over 3% in the last five trading sessions as summer fuel demand might reduce inventories in the near term.
Trending Stocks 🔥
RH- The high-end retailer tumbled 17% as investors analyzed the latest earnings report and commentary around softness in consumer spending.
Adobe - The software company soared 14.5% after surpassing consensus estimates on the back of higher new annualized Digital Media revenue. It also lifted full-year guidance.
Hasbro - Bank of America upgraded the toymaker to “buy” from “neutral” due to Hasbro’s digital gaming strategy, sending shares higher by 6%.
Elon Musk’s Bold Prediction
Fresh from the approval of his $56 billion compensation package, Elon Musk made a bold prediction, claiming Tesla could eventually be worth $25 trillion. He explained that the valuation would be based on Tesla’s success as a robotics company.
Without providing a timeline for the claim, Musk also suggested Tesla’s robotaxi business could be valued between $5 trillion and $7 trillion.
ARK Invest CEO Cathie Wood is equally bullish on Tesla and set a lofty $2,600 price target for the EV stock by 2029, compared to its current price of $178. According to Wood, an autonomous taxi platform will generate recurring revenue as Tesla would get a slice of every mile driven on its robotaxi service.
Dan Ives, the managing director of Wedbush, has a more realistic price target of $350 for Tesla and expects the company to be valued at more than $1 trillion.
Today, Tesla trades over 50% below its all-time highs and is valued at $568 billion, still making it the largest auto manufacturer in the world.
A Big-Ticket AI IPO
Tempus AI, a healthcare diagnostics company that leverages AI (artificial intelligence) to interpret medical tests to help physicians provide more accurate treatment for their patients, rose 8.8% in its stock market debut.
Tempus AI priced 11.1 million shares at $37 apiece and raised $410 million at a $6 billion valuation.
The Google-backed company believes that AI can help guide therapy selection and treatment decisions in conjunction with the patients’ doctor. In 2023, Tempus AI reported sales of $531.8 million and a net loss of $214 million.
Tempus AI expects to turn cash flow and EBITDA (earnings before interest, tax, depreciation, and amortization) positive within 12 months.
Stablecoins Are on a Roll
Stablecoins are digital equivalents of fiat currencies such as the USD. Today, these digital assets account for the majority of blockchain activity measured in USD.
In fact, stablecoins account for 55% of all blockchain activity and handle over $3 trillion in monthly volume, higher than Visa, which processes $1.2 trillion in monthly payments.
The rising use cases for stablecoins have allowed them to perform well even during the last bear market, given daily stablecoin transactions totaled 10 million each day in the last two years.
Transferring traditional fiat currency is a slow and expensive process that may take several weeks in the case of cross-border transactions. Further, companies such as Western Union, PayPal, and Stripe charge users a hefty fee.
Comparatively, stablecoins offer a solution that can help you receive payments almost instantly and at a fraction of these costs.
Today, several blockchain platforms offer attractive yields on stablecoin deposits, which should attract more users. Are we reaching an inflection point where stablecoins are poised to take off?
Headlines You Can't Miss!
China May retail sales beat estimates
Used EV price crash keeps getting deeper
Malaysia is emerging as a data center powerhouse
Activist Starboard amasses Autodesk stake
Bitcoin to reach $1 million by 2033, says Bernstein
Chart of The Day
LVMH is among the largest retail companies globally. The luxury brand company has grown its revenue by 29x since 1989, and its stock has returned close to 3,000% in the last three decades.
Valued at $400 billion by market cap, LVMH is home to several iconic brands such as Tag Heuer, Fendi, and Tiffany & Co.
The company is fairly recession-resistant, given its high-end buyers are more immune to hefty price tags, regardless of macro conditions.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.