“The meme stock craze is back in full force as investors raced to bid up shares in Donald Trump’s media company,” says AJ Bell Investment Analyst Dan Coatsworth.
“You only have to look at Reddit’s infamous Wall Street Bets forum to find examples of investors hyping the stock ahead of Trump Media’s merger with a special purpose acquisition vehicle (or SPAC). Today’s price action and valuation are completely out of kilter with the underlying business and its prospects.
“It’s as if investors have forgotten how the previous SPAC party ended badly, with the over-heated, frothy market swarming with cash shells that on the whole failed to go on and create any value. Yes, risk appetite has improved over the past six months amid expectations for interest rates to be cut, but the euphoria around Trump Media can only be described as a moment of madness.”
BYD
“China’s BYD has certainly made a name for itself in recent years and brand awareness continues to grow in the West, which is an important step given its aspirations for global dominance.
“Grabbing the headlines at the start of the year after selling more electric vehicles than Tesla in the last quarter of 2023 implied a business firing on all cylinders, yet the more competitive landscape has forced it into the slow lane from an earnings perspective.
“Annual profit missed market expectations, reflecting the price war that’s consumed the electric vehicle space as BYD and Tesla both slashed prices to shift more vehicles.
“Electric vehicles need to be priced lower if they are to become truly mass market and we’re in the middle of this structural shift. That means the likes of BYD and Tesla will have to accept lower profit margins and focus harder on achieving cost efficiencies going forward.”
These articles are for information purposes only and are not a personal recommendation or advice.
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