[eruditely]

Congratulations to Microsoft, this new management is killer. I wonder who will be first to reach $3T.

[giarc]

Apple has a $222 billion lead so far.

[ignoramous]

I guess, it'd be whoever that has its merger and acquisition teams in order. Microsoft has ably demonstrated the pedigree to make bold acquisitions, over its long, fabled history.

[pmorici]

Tesla

[Sohcahtoa82]

Not a chance.

As it is, they're incredibly overvalued, even after their fall from almost hitting $1B. At their current market cap of ~$663B, they still have a P/E ratio of over 650. That is absolutely insane.

[pmorici]

It is a reflection of very high growth and is being valued using a discounted cash flow model based on expected future earnings. Extremely rational.

[Sohcahtoa82]

Tesla would have to increase earnings by 20x to make their current P/E rational.

And I just don't think that's realistic. At least not within the next 10 years.

[pmorici]

Yes, my assumption is they will do that in ~5 years.

[lwansbrough]

Perhaps that's why Michael Burry is shorting it.

[pmorici]

He isn’t shorting it. He bought put options around the time it was added to the S&P 500 in late 2020. Probably a bet that most companies have a pop and return to trend period following addition to S&P as well as a bet that interest rates would rise which affects stocks being valued on a discounted cash flow basis.