As the AI megatrend continues to accelerate, the Magnificent 8 (plus 2) continues to widen its lead (some more than others) and will thereby continue to benefit. Just this past week, for example, OpenAI unveiled "Sora 2," an advanced video generation model and a creation-first social feed (with API and Android integration planned). Also, Anthropic's "Claude Sonnet 4.5" (their most intelligent model yet) is now generally available on Google Vertex AI (enabling developers to build sophisticated applications). This all spells "more growth" and more need for chips, data centers and energy-efficient solutions. In a nutshell, more upside for AI ahead.
Tesla: Despite "Woke Mob," Musk to Better US Again
We've all been the target of anger, but few as much as Tesla (TSLA) CEO, Elon Musk, after he purchased Twitter and joined forces with Trump. However, an examination of his body of work at Tesla reveals he brilliantly created the modern electric vehicle ("EV") industry in anticipation of renewable energy becoming a significantly larger portion of the US electric grid (see chart below) and thereby enabling EVs to ultimately be powered more by clean energy and less by the dirty fossil fuels that dominated the grid and powered EVs when that industry began. It was a brilliant innovation that improved quality of life in the US, and he seems, presciently, about to do it again. This report is about the existential total addressable market opportunity Full Self-Driving (“FSD”) technology creates for Tesla, including competitive advantages, valuation, risks and concluding with my strong opinion on investing.
Tesla: Despite Selloff, Valuation High, Growth Speculative
Tesla is one of the most hated stocks in the world, as CEO Elon Musk has infuriated much of his automobile customers politically, and ticked off a lot of investors financially (the shares are down big). This report considers the business model, growth trajectory, valuation metrics, risks, and then concludes with a strong opinion on investing.
Amazon: Ranking "The Magnificent 7" (Midyear Update)
As you can see in the table below, “The Magnificent 7” mega-cap stocks have posted incredible 10-year returns. However, there have recently been some big changes in the market (e.g. interest rate expectations) and to these seven businesses in particular (e.g. maturation, dividends, AI and more). In this report, we provide an update to our January rankings of the Magnificent 7 stocks, with a special focus on Amazon (AMZN) (including its business, four big growth drivers, valuation and risks). We conclude with our strong opinion on investing in Amazon (and each of the Magnificent 7) for the remainder of this year (and beyond).
Top 20 S&P 500 Stocks: YTD and Last 10 Years
Major Auto Manufacturers: Mkt Cap, Margins, Valuations
Major Car Maker Comparisons: Just a quick “chart break” to share comparative data on the major auto makers in terms of market caps, margins, valuations and growth rates. There’s been a lot of talk about how disproportionately large Tesla’s market cap is to other car makers, but when you take into consideration Tesla’s strong margins and higher growth rate, the story becomes very different. Here is the chart.
Tesla: 20 Top Growth Stocks Ranked
Tesla shares are down more than 70%, and it’s going to get worse. For starters, the “woke mob” is ticked at CEO Elon Musk. Next, growth stocks in general are getting hammered as interest rates rise and there is no “fed put” in sight. In this report, we rank Tesla (based on fundamental metrics) versus 20 top growth stocks sourced from the top 10 holdings of two popular active growth ETFs, Future Fund (FFND) and Ark Innovation (ARKK), both have very large positions in Tesla. After digging deeper into the details on Tesla (including its tangled business history with the woke mob, future growth potential, profitability, valuation and risks), we conclude with our strong opinion about investing in Tesla and growth stocks in general.