With Warren Buffett's Berkshire Hathaway at an all-time high, it's worth noting that Berkshire Hathaway Class A stock is up 1.08 million percent — not a typo — since September of 1976. The market's tech rout continued yesterday, sending US stocks lower. The S&P 500 fell 0.5%, the Nasdaq 100 gave back 1.2%, and the Russell 2000 dipped 0.4%. This marked the fourth straight day of losses for the S&P 500, and the Magnificent 7 closed 10% below their December all-time high. |
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Tesla shares fell 9% yesterday, dropping to $303, following news that sales were down an eye-watering 45% in Europe. Shares hit a high of just under $480 shortly before Christmas after a postelection romp, but have been declining slowly — and then quickly — over the course of the year so far. That said, it's a little curious why exactly some admittedly rough European sales numbers have much valence on Tesla's stock price at all, at least enough to send the price down by 9% in a single day. After all, since when is Tesla trading at a price-to-earnings ratio of 175 because of a few thousand vehicle sales in the EU? But Tesla's valuation and stock price haven't been strongly correlated with its actual business selling vehicles in ages. Heck, its price gyrations are more closely linked to the price of crypto than they are to the US stock market, a unique quality among companies of its size and value. Tesla trades where it does because an investment in the company is a wager on the ability of the richest person in the world to operate a business that will continue to gain in value. This makes the price drop somewhat odd. Why did the market cap of Tesla drop by over $85 billion in an afternoon? Is it because it sold 9,945 new cars in Europe in January instead of the 18,161 it did last January? Or is it actually something else? |
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This volatility is probably not just because of European car sales. If Tesla the vehicle is losing its mojo in Europe, that's an especially big problem because Tesla the company's valuation is heavily based on mojo, and it's one of many high-flying stocks that have been getting crushed as of late. The chart in Europe looks gnarly, sure, but the implication is gnarlier. |
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A monster plan for homebuilding |
It won't emerge from the sea, but a planned monster-sized factory could shake up the nearly $5 trillion global home construction market. The company behind the factory, BOXABL, rewrote what's possible in housing with its assembly-line approach. Traditional homes are built in 7+ months. BOXABL factories can assemble foldable homes in nearly 4 hours – fully fitted with plumbing, electrical, and HVAC. They've already built and delivered 600+ homes – with 190,000+ more reservations from potential buyers.1 The company has also gained the attention of investors like D.R. Horton. Now, with additional funding, they're aiming to build BOXZILLA – a potential multimillion-square-foot, billion-dollar factory. Boxabl believes it could be the world's largest and most advanced mass production of housing ever attempted. Become a BOXABL shareholder today for just $0.80/share.2 |
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A monster plan for homebuilding |
It won't emerge from the sea, but a planned monster-sized factory could shake up the nearly $5 trillion global home construction market. The company behind the factory, BOXABL, rewrote what's possible in housing with its assembly-line approach. Traditional homes are built in 7+ months. BOXABL factories can assemble foldable homes in nearly 4 hours – fully fitted with plumbing, electrical, and HVAC. They've already built and delivered 600+ homes – with 190,000+ more reservations from potential buyers.1 The company has also gained the attention of investors like D.R. Horton. Now, with additional funding, they're aiming to build BOXZILLA – a potential multimillion-square-foot, billion-dollar factory. Boxabl believes it could be the world's largest and most advanced mass production of housing ever attempted. Become a BOXABL shareholder today for just $0.80/share.2 |
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Mere months have passed since Nvidia last reported earnings, but that may as well have been an alternate universe, and everyone is waiting to see if it's Superman coming to save the earnings day or if his Bizarro counterpart will continue to rule the stock's trend line. Last November, the chip designer was flying high, soaring 25% in the two months prior to its report. This time, however, the stock is slouching. As you can see in this chart, the price action is a negative mirror image, with the stock suffering the biggest one-day monetary loss for any stock, ever, last month. |
- That might not be bad for the stock going forward. Nvidia's last earnings report blew analysts' expectations out of the water, exceeding earnings per share handily and revenue expectations by over $1 billion. But good news was bad news as Wall Street's dreams were even higher… so the stock went down.
- Today, Nvidia may again surpass expectations, so in our "black is white" and "Lex Luthor is a hero" timeline, does that mean the stock will go up? Well, we, like Superman, can't see through the lead wall of the future. But the simple logic holds that if you were to report the same set of numbers after going down 10% or up 25%, the reaction would probably be better in the former case than the latter.
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The fundamental backdrop hasn't changed too much over the course of three months. But the vibes, as the kids say, have shifted. Notwithstanding megacap tech companies' commitment to spend some $315 billion on capex this year to bolster their AI capabilities, investors are seemingly looking through the current year and wondering when this supercharged spending binge will materially inflect lower. The emergence of DeepSeek and worries that Microsoft may be fully stocked on data centers might be causing some fraying of the everything-AI-to-the-moon thesis. |
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Should You Cancel Your Car Insurance? |
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Should You Cancel Your Car Insurance? |
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Yesterday's Big Daily Movers |
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- GameStop briefly jumped after CEO Ryan Cohen tweeted, "Letter received," around a call to buy bitcoin
- Robot umpires will be tested during MLB spring training
- Residents of a Hamptons town are losing their minds over the case of a $25 missing gift card
- Massive $1.4 billion Bybit hack spurs cold wallet worries and ethereum rollback debate
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- January new home sales
- Earnings expected from Nvidia, Salesforce, Lowe's, IonQ, Stellantis, Snowflake, AB InBev, and Ebay
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Advertiser's disclosures:
1 Reservations represent a non-binding indication of interest to purchase as Casita. A reservation does not require purchase of a Casita and there is no assurance of how many will result in actual purchases. 2 The minimum investment is $1,000. This is a paid advertisement for the Boxabl Inc. Regulation A offering. Please read the offering circular and related risks at www.boxabl.com/invest#circular. Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck. |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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