A.On Wednesday, Wall Street prices fell. Among the big losers was the corona vaccine developer Moderna, whose share price fell by almost 8 percent. Alan Carr, an analyst at Needham, had praised the vaccine and the company, but downgraded his investment rating to “hold”. The reason: All the sales expectations are already included in the course. There may still be advantages over other vaccines, but everything is currently priced in.
The fact that investors currently seem to be very allergic to statements about the valuation of a share was also shown by the clear minus of almost 7 percent in the listing of Tesla shares. JPMorgan had raised the target price from 80 to 90 dollars, among other things because of a higher valuation of the overall market. But given a rate of still more than $ 600 that is rather ridiculous. But other analysts are also implicitly pessimistic. Only two of the price targets given since the beginning of November are above $ 600. Even Morgan Stanley, who advised “overweight” on Thursday, put it at $ 540.
JP Morgan analyst Ryan Brinkman said stocks remained extremely overvalued in every way. More and more investors asked themselves whether they should buy the stock because of the upcoming inclusion of the electric car manufacturer in the broad S&P 500. But even if index funds have to buy Tesla shares, Brinkman does not advise increasing the holdings of Tesla shares according to their future weight in the S&P 500.
Within two years, the share price has risen by more than 800 percent, the price targets by around 450 percent, but at the same time profit expectations for the years 2020 to 2024 have fallen. That is a strong indication that something other than the fundamental data is driving the course.
Tesla, in turn, seizes the opportunity. On Tuesday the company announced plans to sell new shares for around $ 5 billion. However, this corresponds to just under 1 percent of market capitalization and by no means covers the roughly $ 75 billion that index funds will have to raise in about two weeks according to the current status in order to adjust their portfolios after Tesla’s inclusion in the S&P 500. By the way, at the beginning of the year it would have been just under $ 10 billion.