The biotech sector has received a lot of attention and hype lately because of the COVID-19 pandemic. The outbreak has highlighted the importance of science in advancing the course of humanity. Investors have been taking notice and are making investment choices. There has been a lot of activity in the biotech sector, most especially as the companies in this sector are directly involved in the race to finding a coronavirus cure. Healthcare stocks have soared as investors bet on a coronavirus vaccine.
On August 31st Tesla‘s latest bull run ended when the stock closed at an all-time of $498.50 per share. At that price, the market cap value of Tesla was $464 billion, an amount greater than Ford, GM, Daimler, Volkswagen, and former number one Toyota put together. With Tesla approaching $500 billion, a level reached by only a handful of companies most notably today’s tech giants, Apple, Amazon, Google, Facebook, and Microsoft, we at Cornell Capital Group thought it would be a good time to examine what is required to be a $500 billion market cap company. Before investors conclude that Tesla is a $500 billion company, they should consider what the tech giants looked like when they reached that level.
Beyond Meat (BYND) was one of last year’s hottest stocks. Shares of the plant-based meat company exploded 859% during its first three months out of the gate.
Tesla is planning its battery day for Sept. 22, and analysts and investors are looking forward to hearing what new developments the company has on it. The big topic of conversation lately has been a million-mile battery, but it may be too early for that technology.
Overall, corporate growth fell as reported by second quarter 2020 financial statements submissions and extending a declining trend that began in the last quarter of 2018. The gross profit margin has dropped for the fourth consecutive quarter both on average and more frequently. This is a highly correlated factor that has been a reliable predictor of the direction of share prices. With shares now broadly extended and with the indexes at all-time highs its Sell Sell Sell.
Since the Federal Housing Finance Agency proposed the capital rule for Fannie Mae and Freddie Mac at 4%, the housing finance market has been in an uproar. Numerous experts have come forward and said that it’s too high.