10,000 Day Traders An Hour Are Buying Tesla Shares. Bubble?
The stock is trading at166 times estimated earnings, primarily driven by novice millennial investors frustrated by their inability to bet on sports. Bubble? Ya think? JL
Sarah Ponczak reports in Bloomberg:
40,000 Robinhood accounts added shares of the automaker during a single
four-hour span on Monday, according to data on the investing platform that’s much beloved by day
trading millennials.Tesla’smarket cap has surged by $202 billion, pushing Elon Musk past Warren Buffett in rankings of the world’s wealthiest people.The stock is trading at 166 times estimated earnings over the next year, 20 times book value and seven times sales.
Almost 40,000 Robinhood accounts added shares of the automaker during a single four-hour span on Monday, according to website Robintrack.net, which compiles data on the investing platform that’s much beloved by day trading millennials.
The one-day return may not have turned out so well. Tesla was up as much as 16% at one point before paring gains through the day and finishing 3% lower. It was a rare losing day for the high flying stock, which has surged 56% over the past 10 days.
All told this year, Tesla’smarket caphas surged by $202 billion, pushing Elon Musk past Warren Buffett in rankings of the world’s wealthiest people and burning shorts who have as much as $20 billion in bets the stock will fall. The stock is trading at 166 times estimated earnings over the next year, 20 times book value and seven times sales.
The frenzy in interest means that as of the end of Monday’s trading session, there are now roughly 457,000 users on the Robinhood app that hold shares of the company in some form. That makes it the 10th-most popular stock on the platform, ahead of even Amazon.com Inc., which is held by 358,000 users.
It isn’t at all clear that day traders are the main driver for the nosebleed rally in Tesla shares over the past few weeks. Indeed, there are myriad otherpossibilities, from the potential reveal of a new battery technology, to short covering, to conjecture over the possibility for the stock’s addition to the S&P 500 Index.
Of course, Tesla is just one company. But for those who like to track investor sentiment, particularly as a contrarian market indicator, the surge in interest Monday sure seems like a doozy.
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As a Partner and Co-Founder of Predictiv and PredictivAsia, Jon specializes in management performance and organizational effectiveness for both domestic and international clients. He is an editor and author whose works include Invisible Advantage: How Intangilbles are Driving Business Performance. Learn more...
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While the Lux Algo website https://fxrobotz.com/lux-algo-review/ doesn't provide specific examples, the Lux Algo discord channel is a good resource for educating users on how to use the indicators. The website also has a YouTube channel and a discord server where people can post questions and receive answers. This community is a great resource for traders.
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