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$55 Billion Tesla Frenzy Has Morgan Stanley Lacking Answers

(Bloomberg) — About $55 billion of Tesla Inc. shares were traded Tuesday as investors piled into a rally that has doubled the electric-car maker’s stock price since the start of the year.To put it into context, that’s just over five times the volume of the stock with the day’s second highest turnover, Apple Inc. As noted by Morgan Stanley, the record trading also exceeded this year’s average repo operation conducted by the Federal Reserve to support the overnight funding needs of the U.S. banking sector. The average daily value of Tesla stock changing hands last year was $2.5 billion.Touted reasons …read more […]

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Analysts: These 3 Video Game Stocks Represent Exciting Plays

Video gaming is an enormous business. According to VentureBeat, profits from the industry are expected to reach $180.1 billion in 2021. Not only are the companies behind the popular titles capable of seeing huge profits, but the players, too. While the idea might have seemed far fetched a few years ago, at the top end of professional esports, there are players taking home significant paychecks, both from competitions and from streaming-derived revenue on popular platforms such as Amazon’s Twitch. In addition, advances in technology provide VR and mobile gaming room for significant growth in the new decade.So, with our gaming …read more […]

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Ford shares fall 8% after disappointing 2020 profit outlook

The disappointing outlook underscores the higher costs that Ford has been spending on developing self-driving and electric cars to keep pace with pioneers like Tesla Inc . The No. 2 U.S. automaker by sales volume is far behind Tesla in the development of electric car technology. A recent rally in Tesla’s shares have taken its market capitalization to $160 billion, nearly four times that of Ford’s valuation, despite having sales volumes that are less than 10% of Ford. …read more […]

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Netflix Gains After Disney Results Show It Hasn’t Been Replaced

(Bloomberg) — Walt Disney Co. reported strong subscriber numbers for its Disney+ streaming service, but it’ not the competitive risk that it may appear for Netflix Inc., analysts said on Wednesday.While there were both bullish and bearish takeaways for Netflix in Disney’s report, the “positive outweighs the negative,” wrote BofA analyst Nat Schindler, who reiterated his buy rating and $426 price target on the stock. Even with this high-profile competition, “Netflix remains the OTT staple,” the firm wrote, referring to over-the-top streaming services.Shares of Netflix rose 1% in pre-market trading, while Disney was up 0.3%. Since Disney+ debuted in November, …read more […]

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Big Short’s Eisman Ends Bet Against Tesla, Calling It Cult-Like

(Bloomberg) — Steve Eisman, the investor made famous by betting against subprime mortgages before the 2008 financial crash, said the recent run-up in Tesla Inc.’s stock is inexplicable and is instead bullish about General Motors Co.Eisman, whose wagers against the housing market were chronicled in Michael Lewis’s 2010 book “The Big Short,” told Bloomberg Television he covered a short against Tesla that he first disclosed in July 2018.“Look, everybody has a pain threshold,” Eisman told Bloomberg TV’s Tom Keene. “When a stock becomes unmoored from valuation because it has certain dynamic growth aspects to it, and has cult-like aspects to …read more […]

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Dividend Payout Ratio: Definition and Formula

When you invest in a stock, oftentimes you expect to earn income by receiving dividends. And knowing how much of a company’s earnings it pays out as dividends can tell you a lot about that firm. Enter: the dividend payout ratio.
After all, there are two basic ways you can earn profits from buying a stock. Those are:

Capital Appreciation
Receiving Dividends

Capital appreciation occurs when the price of the stock increased from the price you purchased it at. So, if you bought the stock at $60 and it increases to $65, you’ve earned a $5 profit (before taxes, anyway).
Dividends are the other way …read more […]

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Pipelines Are About to Join the ESG Trend, National Bank Says

(Bloomberg) — Pipeline and midstream energy companies may be about to join the sustainable investment trend.The sector has often been a target of environmental opposition, but their “impressive” safety track records and relatively low environmental footprints could make them a focus for investors who favor environmental, social and governance factors, according to National Bank of Canada.Enbridge Inc. and TC Energy Corp. topped National Bank’s pipeline-ESG ranking, with Inter Pipeline Ltd garnering a positive mention. Compared to power and utility companies, the group has to do a lot of work to develop sustainability reports and targets but that provides an attractive …read more […]