The Hype Goes On

This is beginning to look like deja vu. Paying ridiculous stratosphere valuation to acquire a company and the puppets trying to put on a straight face to tell their story how a stock can justify more than 130 multiples. If you are old enough, you probably have an image of those bygone dot com bubble days in 1999-2000. Who say history doesn’t repeat itself, here we go again. For those that were lucky enough to have survived the tech bubble, let see if you can capitalize from the experience.

TSLA reported its earnings today after the market closed and the stock price took off. The market was pricing in an upside move to approximate 222, but TSLA actually went as high as 225 before it pulls back. If the momentum continues, it could move toward the upper trend line of the rising price channel near 240. If a pullback occurs from this point, it could possibly dip down near 182.

(Click on the chart to enlarge)


FB announced it is acquiring a messaging company named “WhatsApp” for $19B using a combination of cash & stocks. The stock was under some pressure in the after hour session. It could dip down to the 62 level as the market digests the acquisition news. The upper price target remains to be near 72.



Disclosure: Long FB.