THE GHOST TRAIN
THE FINANCE GHOST: Who dares wins: Netflix or Tesla?
Netflix was the clear laggard among the ‘magnificent seven’ a year ago. That story appears to be changing
If you draw a chart starting a year ago, you’ll see Tesla and Netflix had both returned about 35% by mid-January. Since then, however, their performances have diverged spectacularly. After the latest earnings releases, Netflix is now up 62% over the 12 months and Tesla is up just 10%. It’s like the two share price lines had a terrible fight and aren’t talking to each other any more, with one shooting up to the moon and the other flatlining.
The thing is, Netflix and Tesla aren’t competitors. There’s actually no logical reason to lump them together, but markets aren’t logical. Both are among the technology giants that have defined the past decade on the markets. Netflix was part of the previously popular FAANG group but didn’t make it into the “magnificent seven”. In contrast, Tesla has moved from relative obscurity into the spotlight over the past few years...
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