An inbetween Tech Stock

BY ANDREW GIOVINAZZI

January 18, 2024

Yo Pit Crazies,

Weekly Profit Cycles is open for quarterly sales, give it a try while the getting is good. Learn to pay the rent waiting for a big move to happen.

Trading options for 33 years has given me a good insight into market trends and fads. I am going to list the big ones I remember:

Biotech

PCs

Cell phones

Routers and Networking

Computer Storage

Semiconductors

Software

Gene Sequencing

Internet

Search Engines

Social Media

Smart Phones

Cyber Security

Cloud computing

GPU’s

Oil and Energy will pay the rent, but Tech will buy the house. Also note that the Tech from an early generation feeds the next generation. Why do stocks hold up right now? The promise of Tech and AI to transform the daily lives of people and businesses. The Mag 7 Tech companies in the USA would not exist without the Internet Revolution of the 1990s.

Tech is always volatile because the promise comes before the dollars.

That brings me to the mystery name of the day.

What is it?

Tesla Inc (Ticker: TSLA) is up 20 fold since 2020

Yup you heard it here. Not that it is old news but that somehow TSLA is a car company that became a technology company somehow overnight. That is where the volatility comes from. Is it worth a fortune as a tech company or just a car company for people who can afford $50,000 and up EVs.

TSLA also plows a ton of earnings back into R&D. That is why I found the latest tweet from Elon Musk curious when he said he did not want to pursue new tech with only a 12.5% stake in the company. He cannot drive the boat enough.

Those comments maybe came out to halt a slide in the stock that there could be a corporate action in the works. TSLA is underperforming Big Tech in a Big Way lately and looks like it wants to get to $200.