Tesla's Q1 2023 earning don't be manipulated by "buy the rumour, sell the news" tactic
During a bearish macro environment most writers will 'follow the trend' and post negative sentiment about a stock before earning announcement. $Tesla (TSLA.US)$ being one of the most volatile stock expects to see many.
I have selected 2 opposite views about Tesla's earnings - one miss, the other beat the estimate. My purpose is to allow investors to have a balanced view - negative and positive and decide objectively how to invest (sell, hold or buy more) - just don't panic.
I have selected 2 opposite views about Tesla's earnings - one miss, the other beat the estimate. My purpose is to allow investors to have a balanced view - negative and positive and decide objectively how to invest (sell, hold or buy more) - just don't panic.
Tesla is not any ordinary company; it's one with a strong fundamental. Despite it's high P/E ratio, which is not an accurate indicator to guage a company's performance, Tesla has a market capitalization beyond the reach of it's competitors including BYD.
The article which states that Tesla can beat the earning estimate with solid technical analysis is not easy to find one but there are if we dig deeper. Having said that share price may not rally after a positive earning report; similarly when share price falls is not due to earning miss estimate. Don't be manipulate by "buy the rumour, sell the news" tactic.
I quote the following to highlight the opposite view as reference:
The article which states that Tesla can beat the earning estimate with solid technical analysis is not easy to find one but there are if we dig deeper. Having said that share price may not rally after a positive earning report; similarly when share price falls is not due to earning miss estimate. Don't be manipulate by "buy the rumour, sell the news" tactic.
I quote the following to highlight the opposite view as reference:
Positive:
"For Tesla, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.22%..."
"For the last reported quarter, it was expected that Tesla would post earnings of $1.09 per share when it actually produced earnings of $1.19, delivering a surprise of +9.17%. Over the last four quarters, the company has beaten consensus EPS estimates four times..."
"For Tesla, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.22%..."
"For the last reported quarter, it was expected that Tesla would post earnings of $1.09 per share when it actually produced earnings of $1.19, delivering a surprise of +9.17%. Over the last four quarters, the company has beaten consensus EPS estimates four times..."
Negative:
"Tesla, the largest electric carmaker in the world, is likely to report a 20% decline in first quarter earnings, despite delivering a record number of cars as aggressive price cuts eat into its bottom line..."
"Over the two years, the company’s operating income has grown more than six times over two years to $3.9 billion in the fourth quarter of last year, compared to the same period in 2020. That is likely to be seen as the peak over the medium term as the price-cut strategy dents the profitability of each vehicle..."
Tesla Earnings Likely Dropped 20% On Price Cuts Despite Record Deliveries
Tesla Earnings Likely Dropped 20% On Price Cuts Despite Record Deliveries
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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