{"id":164807,"date":"2021-01-28T06:05:00","date_gmt":"2021-01-28T03:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/marketwatch-first-take-apple-justifies-its-huge-valuation-while-tesla-not-so-much\/"},"modified":"2021-01-28T06:05:00","modified_gmt":"2021-01-28T03:05:00","slug":"marketwatch-first-take-apple-justifies-its-huge-valuation-while-tesla-not-so-much","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/marketwatch-first-take-apple-justifies-its-huge-valuation-while-tesla-not-so-much\/","title":{"rendered":"#MarketWatch First Take: Apple justifies its huge valuation, while Tesla \u2026 not so much"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3289f2ee90a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3289f2ee90a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/marketwatch-first-take-apple-justifies-its-huge-valuation-while-tesla-not-so-much\/#Wednesday_was_a_tale_of_two_earnings_reports\" >Wednesday was a tale of two earnings reports<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/marketwatch-first-take-apple-justifies-its-huge-valuation-while-tesla-not-so-much\/#Therese_Poletti\" >Therese Poletti<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#MarketWatch First Take: <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>le justifies its huge valuation, while Tesla \u2026 not so much<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Wednesday_was_a_tale_of_two_earnings_reports\"><\/span>\n  Wednesday was a tale of two earnings reports<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000145411\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The difference between two of the most popular stocks in America, Apple Inc. and Tesla Inc., stood out starkly Wednesday.<\/p>\n<p> Apple<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"negative\">-0.77%<\/bg-quote><br \/>\n       reported a record-setting quarter, with $111.4 billion in quarterly revenue, a jump of 20%, fueled by strong demand for its products used for working and learning from home, including the new 5G iPhone 12.  Apple\u2019s shares fell nearly 3% in after hours, but held onto its stratospheric market cap of approximately $2.41 trillion.<\/p>\n<div class=\"paywall\">\n       Noteworthy in the quarter was the fact that iPhone sales of $65.6 billion soared past Wall Street\u2019s expectations of $59.5 billion. And the new iPhone wasn\u2019t even available during the entire holiday quarter. Dan Ives, a Wedbush Securities analyst, called the quarter a \u201cjaw dropper\u201d that beat even bullish whisper expectations among analysts.<\/p>\n<p>Even so, analysts seemed to be a bit concerned about whether or not Apple can keep up this pace of growth, amid these ever larger numbers. Toni Sacconaghi of Bernstein Research asked Apple Chief Executive Tim Cook on the company\u2019s conference call what he thought was a \u201crealistic revenue growth rate\u201d for the next five years.  <\/p>\n<p>\u201cToni, as you know, we give some color on the current quarter but not beyond that in terms of growth rates,\u201d Cook said. \u201cSo I\u2019ll punt that part of your question.\u201d In his preview note ahead of Apple\u2019s earnings, Sacconaghi asked, \u201cThe cycle appears reasonably strong, but at 31x [times fiscal 2021] earnings [estimates], what\u2019s next?\u201d<\/p>\n<p>Cook pointed out that Apple still has \u201ca fair amount of headroom\u201d for market-share expansion in many areas, particularly in some emerging markets like India. Another stellar performer was the company\u2019s services business,  which set an all-time record. Apple also has a quarterly dividend of 82 cents share, and an ongoing stock buyback plan for investors that helps justify its lofty valuation.<\/p>\n<p>In contrast, Tesla<br \/>\n        TSLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203558040\/composite\" class=\"negative\">-2.14%<\/bg-quote><span>,<\/span><br \/>\n       which soared to new highs in the past few months, disappointed investors by missing Wall Street\u2019s expectations, even though it managed to squeeze out its sixth consecutive profitable quarter. But once again, Tesla achieved that profitable quarter via regulatory credits of $401 million, a point that is much-debated among investors. <\/p>\n<p>\u201cMy fourth-quarter estimates assume roughly $550 million in boosts from energy credits and unusual items, which may likely account for most, if not all, of Tesla\u2019s reported \u2018profit\u2019 \u2014 as has happened in each of the past five quarters,\u201d wrote Vicky Bryan, founder and CEO of the Bond Angle, in a preview note on Tesla\u2019s earnings. <\/p>\n<p><strong>Read more<\/strong> about how Tesla plays smoke and mirrors with profits.<\/p>\n<p>Since October, its stock has more than doubled, at one point hitting $880 a share. It currently has a valuation of approximately $837 billion. On Wednesday, its shares sank around 5% in after-hours trading, as Chief Executive Elon Musk tried to rally the troops on the company\u2019s earnings call and in the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tesla-cdn.thron.com\/static\/78Z2ZX_2020_Q4_Quarterly_Update_Deck_SMXBZX.pdf?xseo=&amp;response-content-disposition=inline%3Bfilename%3D%22TSLA-Q4-2020-Update.pdf%22\" class=\"icon none\">quarterly shareholder slide deck. <\/a><\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201c2020 was a defining year for us on many levels,\u201d Musk said. \u201cDespite a challenging environment, we reached an important milestone of producing and delivering half a million cars.\u201d He said Tesla delivered almost as many cars as it produced. <\/p>\n<p>But on the downside for investors, Musk &amp; Co. also noted in their shareholder letter that they were simplifying guidance because of the large number of products the company is producing. \u201cOver a multiple-year horizon, we expect to achieve a 50% average annual growth in vehicle deliveries,\u201d Tesla said. \u201cIn some years we expect to grow faster, which we expect the case to be in 2021.\u201d <\/p>\n<p>That guidance was less precise than in the past. For example, in the third quarter of 2020, Tesla said it had the capacity to deliver 500,000 vehicles, and that remained the company\u2019s target for 2020.<\/p>\n<p>Musk also was asked about his past bullish projections that Tesla would achieve full, Level-5 autonomy in 2021. He has also predicted that the company would have fully self-driving robo-taxis by the end of this year.  <\/p>\n<p>\u201cThis is happening rapidly because we\u2019ve got so much training data with all the cars in the field and the software is improving dramatically,\u201d Musk said. He also said that the holy grail right now is \u201cauto labeling\u201d of the video that is being processed by the vehicles, but he did not really describe its timing or progress. \u201cWe\u2019re moving everything towards labeling,\u201d he said.  <\/p>\n<p>Last month, Tesla joined the venerable S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-2.57%<\/bg-quote><span>,<\/span><br \/>\n       a move that will place the stock automatically in a huge variety of index funds based on that list of established growth companies.  But disappointments can take  momentum out of a stock, and those with hefty valuations like Tesla are even more at risk. <\/p>\n<p>In the end Wednesday, the established Apple proved its mettle, while Tesla again begged more questions about its lofty ascendance.<\/p>\n<p><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Therese Poletti\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Therese_Poletti\"><\/span>Therese Poletti<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D23803BC5330%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#MarketWatch First Take: Apple justifies its huge valuation, while Tesla \u2026 not so much&#8221; Wednesday was a tale of two earnings reports The difference between two of the most popular stocks in America, Apple Inc. and Tesla Inc., stood out starkly Wednesday. Apple AAPL, -0.77% reported a record-setting quarter, with $111.4 billion in quarterly revenue,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":164808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-164807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/164807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=164807"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/164807\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/164808"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=164807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=164807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=164807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}