Calls of the Day: Tesla and Block

All right, we're back to our calls of the day. Roth Capital, they upgrade Tesla into a buy from neutral. They say, quote, the world's changed. Target goes to three eighty. Now, the target was also moved higher today at Stifel on that notion, though, that the world's changed. I don't think you need to be a rocket scientist to figure out how the world has changed in their eyes because it's changed in many eyes and the stock has had an incredible move since the election. Is that is it sustainable? Is there is there you know, has the world changed enough that the trajectory of this stock is just continued to be straight up to the right? I don't know how to assess it. You know, I don't know. You own it. If I go back to that, was it we robot day and then that date and time and what's changed since then? Really nothing's changed except Trump won and Elon supported Trump. And then you have like the two most powerful people in the world that are besties. And so I think that clearly the stock has had a huge halo effect from that longer term. Right. But I think that's a big part of the narrative. So I'm not sure which one had a sell on it before that went from eighty five to two eighty five or what have you. The guy that was bearish forever. But I think a lot of people don't want to be in the crosshairs of the two biggest tweeters in the world. And if you're negative on the stock and you have a sell price of eighty five, I just think you're missing that you're missing not only the narrative, but where the price is that you need to. Yeah. Let me ask you a question real quick. I'm sorry to interrupt you because you said it's a big part of the narrative, right? The these besties. Right. Is that the whole narrative that's gotten the stock from Election Day until now and has this the world has changed dynamic behind it? I don't I'm not sure. I think that less regulation, you know, people will say that. But really, I think for autonomous driving, that wasn't Tesla's issue at the point. They need to get their own comfort around their SSD. So I think it's definitely part of the narrative. I think longer term optimist is really interesting. I don't think anybody had optimist in their numbers a year ago. So so we'll see. I mean, the stock has huge call premium. So, I mean, if you're going to go into the stock today, I would highly recommend selling calls because you can get some massive premium because I think it will be a volatile ride because when their numbers come out in January, they need to deliver. And I think historically where where where Elon has always been, I think, correct long term and the short term, you know, we're not going to get a cyber cab next year. They said that's twenty twenty six. And so I think at some point next year we'll get a three. But to me right now, there's this big halo between between, you know, Trump and Elon. And I think that will continue continue until it doesn't. Yeah. Yeah. Yeah. I mean, I think there was a downgrade. Somebody downgraded it last week. And I think my reaction to that was, yeah, good luck. Good luck with that. What do you do? Right. I mean, you want it. You used to have this. We used to have the momentum. You want to get in front of the momentum that's there now. It rebuilt itself so rapidly. And you could clearly say, OK, it was attributable to President Trump winning the election in the relationship with Elon Musk. But whatever the reason behind it, the momentum right now in Tesla is arguably one of the strongest momentum conditions you're going to see in an S&P 500 stock. Yeah. You could respect the respect, the trend, respect the momentum. I think the return Musk got on whether he put one hundred or one hundred and forty millions of the campaign in terms of his increase in wealth and stock price. Man, I don't know if anybody's ever had that kind of the greatest ROI ever without a doubt, without a doubt. And as you know, Bryn and I went at it earlier this year on Tesla, and I think I won for about two seconds in terms of the short, which obviously quickly covers. I know too many shorts have been put out of business on Tesla, but but she's been dead right on it. They still have to deliver at some point. I mean, robo taxis, unproven, still don't know the launch date, you know, full autonomous driving. Well, I think that's much closer now when they have an ability essentially to rewrite the rules to accommodate that. So momentum will continue. All right. You want to give me something on block, Joe? Best idea at Bernstein today. The target goes to 120 from 90. They stay outperform on it under underappreciated long term optionality from Bitcoin. People that pay attention to fundamentals, they're not going to appreciate what I'm about to say. But the market is becoming so much more oriented towards technicals and algorithms. We earlier in the year bought this name and we bought it. We bought it purely on momentum. It's not as if the fundamentals are there. And now the analyst community is coming around. They're raising price targets, 12 month price target. And this is ninety two dollars. What do you mean the fundamental? It's not like the fundamentals. You could say the world's also for for for the Bitcoin outlook. OK, so a part of the if part of the positive thesis going forward is related to that, then the fundamentals have changed. And that's perception. Perception, which is not reality. Perception, which is reflected in momentum. Reality is I look at this company. What's the revenue growth over the last three years? Thirty six percent. What was the revenue growth in the last quarter? Nine percent. What was the revenue growth in the last four quarters? Twelve percent. So the revenue is actually declining. Are we talking about where the puck was or where the acceleration? I want to see a reacceleration in the revenue growth if I'm going to say, OK, I've got the fundamental condition now contributing to what is clearly a purely positive momentum condition.